Profits woe rocks McCarthy & Stone

RETIREMENT housebuilder McCarthy & Stone has cut its profit forecast after a slowdown in sales.

The company said sales fell 7pc in the year ending August 31. It also said profit was likely to come in between £65m and £73m – down from a previous prediction of £65m to £80m.

It comes less than three months after the firm warned on profits, saying they would be lower than the previous year’s £96m.

The company is also bracing for new rules proposed by the Government, which would restrict leaseholds on new-builds.

Yesterday McCarthy said its full-year sales were expected to rise to about £670m, up from £661m last year. This was boosted by a 10pc increase in the average selling price of its homes, which increased from £273,000 to £300,000.

John Tonkiss, McCarthy & Stone’s interim chief executive, said: ‘It has been a tough year for the group.’