Shares in retirement home builder McCarthy & Stone dropped 1 percent on Wednesday morning, after the group said its profits would be more weighted to the second half than previously expected.
The group attributed the change to “subdued market conditions”, but said that it performance had remained resilient. 20 weeks into the financial year its forward order book, including legal completions, stood at £366 million, up from £323m at the same time last year. However, an increased proportion of these sales relate to second half completions, meaning profits are likely to be weighted towards the second half.
Build activity and first occupations remained “on track” for the year with around 80 sales releases still expected for fiscal 2018, up from 52 in fiscal 2017.
The group also warned on the impact of the government’s plan to cut ground rents on new leases to zero, having been in discussion with the government to secure an exemption for retirement buildings.
“While the group is supportive of the overall direction of the government’s leasehold reform to safeguard consumers from excessive increases, there is a strong case for a very specific exemption for retirement housebuilders,” it said.
McCarthy & Stone (LON:MCS) shares are currently trading down 0.97 percent at 143.40 (0908GMT).