McCarthy & Stone notes evidence of some weakness in the secondary housing market since its June 29 trading update. "Whilst website enquiries have increased, and we have continued to take new reservations, these have been at a lower level than we saw in the first nine months of the financial year and cancellations have been at higher levels," the company said. McCarthy & Stone added that it was too early to judge what medium term impact it would see from the EU Referendum result and the Bank of England's subsequent changes to monetary policy. It added that prolonged housing market weakness, particularly in the secondary market, could affect "our ability to deliver our targeted 15% volume growth previously indicated for the financial year ending 31 August 2017. "There has been some improvement in customer sentiment during the month of August, however, it is too early to predict at this stage whether these improving conditions will persist into the new financial year. "McCarthy & Stone will release its results for the full year ended 31 August 2016 on Tuesday 15th November 2016 and provide a further update on prospects for the year ending 31 August 2017 at that time." HIGHLIGHTS: - Legal completions increased by 20% to 2,299 units (2015: 1,923) - Net average selling price increased by 8% to £259k (2015: £239k) - Revenue increased by 31% to c.£635m (2015: £486m) - Land bank increased to c.10,206 plots (2015: c.10,087) for future development at attractive margins, with terms agreed on a further c.1,700 plots - Key strategic initiatives to improve sales rates, reduce development time and implement build efficiencies all on track, delivering improved capital turn of c.1.2x (2015: 1.0x) - Sustained capital discipline, delivering an estimated ROCE of c.20% - Group remains in a strong financial position, with c.£52m of net cash at the year end.
+1.00p (+0.61%)delayed 12:31PM