Retirement housebuilder McCarthy & Stone says its full-year operating profit is likely to decline by at least 24% in 2018 to £73m.
In a trading update for the year to the end of August, ahead of its annual results on 13 November, the firm said that profits could be as low as £65m, down by 32% on 2017’s £96m.
Interim chief executive officer John Tonkiss said it had been a tough year for the company with adverse market conditions and little government support.
Former chief executive Clive Fenton retired in June as the company issued a profit warning for the year.
Today’s trading update said full-year revenue is expected to be £670m – up by £9m on 2017’s £661m – supported by a 10% increase in average selling price to £300,000. Completions were down by 7.3% from 2,302 to 2,134
“In light of the continuing challenging market conditions, the group began a review of its strategy in April,” said Tonkiss.
“Our strategic focus will be on pursuing a more measured trajectory and smoothing our workflow to create a more efficient business. This will naturally lead to a right-sizing of our cost base, with build cost savings being a key area of focus.”
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