Shares tumble in retirement housebuilding firm McCarthy & Stone
Shares in the UK’s largest builder of homes for retirees plunged 17 per cent this morning as the firm forecasted a fall in profit after a period of disappointing spring sales.
McCarthy & Stone blamed economic uncertainty and weaker property prices for the projected dip in profit, in which the firm expects to see operating profit in the range of £65m-£80m compared with £96m reported last year.
Chief executive Clive Fenton also announced this morning that he would be stepping down.
Fenton said: "Having reached the age of 60, it is right that I now stand aside at the end of our financial year to enable a new Chief Executive to be responsible for this journey. Until then, I will remain focussed on delivering the best possible result for the year end and assisting the Board with the necessary transition arrangements."
The board at McCarthy & Stone announced that it is now searching for a successor to replace Fenton.
The reduced profit expectations sent the firm's shares down 17 per cent in early trading to 108p.
While the housebuilding firm insists that the UK’s rapidly ageing population underpins its long-term prospects, a fall in spring sales had hurt profit margins, with property prices falling in areas like the south east.