Retirement homes builder McCarthy & Stone is relying more heavily on price cuts and other incentives to sell homes in a tough housing market, the firm admitted on Wednesday.
The firm, catering for the UK’s growing grey army, is increasingly using tactics like part exchange to encourage sales in a much more difficult climate since the referendum, according to chief executive John Tonkiss.
Tonkiss has been cost-cutting to boost margins since taking over last year, with the group shedding nearly 200 jobs. The associated costs slashed pre-tax profits by two-thirds to £3.6 million in the six months to February 28.
Peel Hunt’s Clyde Lewis cut £4 million off its profit forecast for this year. “Short-term second-hand market conditions have softened,” he said.
Shares eased 2%, or 2.6p, to 123.7p.
McCarthy’s revenues rose 17% to £281 million in the first half, reflecting an 11% rise in sales volumes and higher selling prices due to the improved quality and locations of its homes for sale.
