Retirement home developer McCarthy & Stone fell to a loss over the six months to the end of April, and said the financial impact of the Covid-19 crisis is likely to be felt even more acutely during the second half of the year.
The company posted revenues of £101.1m, down by almost two-thirds from the same time a year ago. Its loss before tax was £91.3m compared to a profit of £3.6m a year ago.
“While we have passed the peak of the crisis, the financial effect will be weighted towards H2,” McCarthy & Stone said in its results statement. The company continues to suspend guidance on the full-year outlook.
Completions during the six months fell by 44% to 471, with an average selling price down 7% at £297,000.
Chief executive John Tonkiss said the trading period had been “extraordinary” but that he is hopeful of new opportunities when the pandemic passes.
“An increased focus on the wellbeing of older people as a consequence of Covid-19 presents an exciting opportunity for our sector to better communicate its unique proposition and promote its many benefits,” Tonkiss said.
“Working with government, we want to develop a long-term plan to provide more options to keep older people safe at home, rather than in a home, and ensure this is fully understood by the public. We are pleased that this call is beginning to be heard with the decision to lift stamp duty, the proposals to reform planning and potential changes to adult social care.”
The company also said that Nigel Turner, chief operating officer for its build division, has left the company as it slims down its top team.
“In light of the impact of Covid-19, the company has reviewed its resources in line with anticipated workflow and demand and is adopting a more streamlined approach,” its statement said. Mike Lloyd will now be sole COO, continuing to focus on sales, customers and services.
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