McCarthy and Stone swings to £91m loss as home sales halve

The Daily Telegraph - Business - - Business -

◆ The re­tire­ment house­builder McCarthy and Stone has crashed to a half-year loss as coro­n­avirus took its toll, writes Rachel Mil­lard.

The FTSE 250 firm made a £91.3m loss dur­ing the six months to the end of April – driven by lower rev­enue but also a £60m one-off good­will write-down.

Com­ple­tions slumped to 471, com­pared to 845 dur­ing the same pe­riod last year, with rev­enue fall­ing 64pc from £280m to £101m.

How­ever, the com­pany re­mains in a rea­son­ably strong fi­nan­cial po­si­tion with debt fall­ing by £3.7m to £53.5m, and £146.5m in cash avail­able.

Chief ex­ec­u­tive John Tonkiss said res­i­dents had coro­n­avirus in­fec­tion rates 27pc lower than the gen­eral over-65 pop­u­la­tion. There were also en­cour­ag­ing signs from its grow­ing rental divi­sion, which has 192 units val­ued at £53.2m.

He said: “We be­lieve we’ll emerge from the cri­sis in a stronger po­si­tion.”

Its shares fell 0.5pc to close at 74p yes­ter­day.

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