Chief executive of retirement homes specialist to leave later this summer
Retirement homes specialist McCarthy & Stone has warned its operating profit for 2018 could be a third lower than last year, following a decline in both reservations and property prices.
Shares in the group slumped more than 14% following the announcement to 112p.
The firm has also announced the retirement following the year-end in August of chief executive Clive Fenton. He joined the firm in 2014.
In a trading update McCarthy & Stone said it had seen a 鈥渘oticeable decline鈥� in reservation rates since April, with potential customers becoming more cautious due to economic worries.
It was also seeing a slower secondary market and a softening of pricing, particularly in the South East.
Completions would be between 2,100 and 2,300, versus 2,302 last year, and the group expected operating profit for 2018 of between 拢65m and 拢80m, against the 拢96m made in 2017, with the profit impact of the unit shortfall skewed to the South East.
A strategic review, kicked off in April, was expected to lead to what the firm called a 鈥渕ore measured growth trajectory鈥�.
Last year McCarthy & Stone reported annual turnover of 拢661m and pre-tax profit of 拢92m.
It is expected to announce its 2018 results in November.
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