McCarthy & Stone reiterates FY pretax profit guidance

McCarthy & Stone reiterates previous guidance on the profile of its legal completions and profit before tax, which will both be more than usually weighted towards the second half of the year.

It said that, overall, its trading outlook for the year remained in line with directors’ expectations. However, its forward sales, including legal completions, were about 2% down on the year.

“This (outlook) is mainly due to the lower forward order book brought into the year as a result of the slow-down in market conditions following the outcome of the EU Referendum and the weighting of completions from higher margin new sites into the second half of the year,” the company said.

It would recommend a final dividend of 3.5p a share for FY 2016, which would take the total to 4.5p.

McCarthy & Stone said that, referring to current trading and forward sales, it has continued to experience normal trading conditions.

“Year to date reservations are currently running ahead of the prior year and have contributed a further £206m of revenue to the Group’s forward order book (FY16 £196m), representing a year on year increase of 5% due to improved average selling prices achieved.

“In addition, new enquirers, sales leads and visitor numbers continue to run ahead of the prior year indicating good future demand for the Group’s products.”

It added that total forward sales including legal completions were now about 2% behind the prior year at £323m (FY16: £329m), reflecting the lower forward order book brought into the year and a slight slowing in sales momentum since our results announcement on 15 November 2016 as a result of the lower number of sales outlets released so far this year.

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