McCarthy & Stone's CFO steps down as it reports improved sales

Retirement housebuilder McCarthy & Stone said trading had improved in the first few weeks of the financial year in comparison to the sharp fall it experienced after the Brexit vote, as the company announced that its chief financial officer was stepping down after five years.

In a trading update for the first five weeks of the new financial year, the company said trading was ahead of the previous year as reservations have been stronger and the cancellation rate has returned to normal levels.

Nick Maddock is to step down as CFO of the company to become head of FTSE 250 listed SIG, a supplier of insulation, roofing, and specialist construction products, who will stay in the post until the new year when a leaving date will be agreed to ensure a smooth transition for his successor.

Chairman John White said Maddock spent the last five years re-capitalising the company and prepared it for its return to the main market of the London Stock Exchange in November 2015.

He said: “With the initial public offering now complete and the first year's results delivered, Nick has decided to move on. He leaves the business in a very healthy financial position, having just recorded a 31% increase in revenue year-on-year and with circa £52m of net cash on our balance sheet at the year end.

“We remain firmly on track to meet our medium term target of building and selling at least 3,000 units a year and achieving 25% return on capital employed."

In the first five weeks, the FTSE 250 company said new enquiries increased and first time visitors to developments have been ahead of those in the previous financial year, with the forward order book, including completions since 1 September, at around £173m and moving towards a similar level to last year of around £177m.

The previous trading update on 2 September said sales immediately after June’s EU referendum had slowed and cancellation rates had increased.

The company came into the new financial year with a forward sales order book of £114m, which was down nearly 13% from the previous year.