Mccarthy & Stone Share Discussion Threads

[theprovosts] 18/3/2020 17:22

Anymore explanations as to the drop. The news was this morning and dropped a few percent. What was that afternoon all about? Net asset value closer to £1.2. What gives?

[cc2014] 18/3/2020 15:41

wtf. I guess the market didn't like it drawing down it's RCF in full with no regard to pulling it down a bit at a time.

[brummy_git] 19/2/2020 06:24

All the latest homebuilder valuation multiples and KPIs can be downloaded from here, including MCS

[justin2513] 16/11/2019 11:12

https://www.theguardian.com/money/2019/nov/16/flat-retirement-builder-value-mccarthy-stone?CMP=Share_iOSApp_Other

[justin2513] 09/11/2019 14:22

Almost missed the fact that MCS were reporting over a 14 month period. Indeed, this alters things quite a lot! Crunching the numbers to compare on a 12 month period it is starting to look pretty poor. Comparable revenue 617.4m (2018 672m) and taking into account the "3% rise in average selling price", this brings it down to more like 599m. So a comparable 8.9% drop in revenue! Am I missing something?.. It doesn't seem like overall UK Property transactions have dropped by 8.9%. Will be very interested to see the accounts in Jan! I would predict PBT to be at the bottom of their estimate at 64m for 14 months, which will actually be 55m over a 12 month period. Let's hope this new strategy will start to bear some fruits going forward! Might be a very good short for now!

[finkie] 16/10/2019 10:03

Promising brexit sorted rise last few days, will be whipped away if boris doesn’t come good....

[finkie] 09/9/2019 08:44

Anything promting today’s rise? House builder news better than expected generally I think...

[finkie] 05/7/2019 14:54

Exempt from ground rent changes good news for this company. Surprised the spike hasn't been sharper!

[cwa1] 10/5/2019 08:51

I see the last synopsis broker note publicly available is from Berenberg:-

16 Apr Berenberg Hold 134.40 120.00 110.00 Reiterates

Which is less than inspirational with a target price of 110p. Other broker notes are available though!

[finkie] 20/2/2019 22:23

Note to self type with your glasses on next time.

[finkie] 20/2/2019 22:22

Goldman Sachs add8ng, probably a low point before the leasehold reforms are known, if only they had a better business model (in aan undoubtedly growing market) and stronger management I would be all over them! Someone tell the managers to go to America to see how they roll out retirement complexes....

[gswredland] 16/11/2018 06:25

And after the good news comes the Brexit fiasco
I’m out

[speedsgh] 14/11/2018 10:31

McCarthy & Stone undervalued, says Peel Hunt -

The ‘transformation plan’ at retirement property developer McCarthy & Stone (MCS) should reduce costs and improve the offering, says Peel Hunt.

Analyst Clyde Lewis retained his ‘buy’ recommendation and increased his target price from 150p to 160p. The shares rose a penny to 136.9p yesterday.

‘The final results aren’t any different from expectations. The focus is on the transformation plan which should deliver sizeable cost reductions as well as the improved offering for customers,’ said Lewis.

He said the shares had ‘bounced sharply’ in the last three months but in valuation terms were ‘trading on a price/net asset (P/NAV) value of one times… which reflects the recent weak trading and leasehold uncertainty’.

‘Given the changes underway as well as the positive outlook for retirement leases, we think the shares should trade on P/NAV of circa 1.2 times.’

[speedsgh] 17/10/2018 11:53

Tempus column in today's Times...

"Shares are good value, but there are numerous worries in housing, even in the retirement market. HOLD"

[speedsgh] 17/10/2018 11:41

Numis: McCarthy risks reduced -

Risks around retirement home developer McCarthy & Stone (MCS) have ‘materially reduced’ after a government paper regarding a ground rent cap excluded retirement housebuilders.

Analyst Chris Millington retained his ‘hold’ recommendation and increased the target price of 130p on the stock, which was trading up 5.9%, or 7.6p, at 134p.

The government paper on leasehold reform and capping ground rents has proposed to exempt retirement housebuilders as the sector offers communal livings spaces that are not covered by freehold sales.

The rationale is that capping ground rent on communal spaces would ‘result in higher prices for customers and lower level of output’.

‘This is a major positive for McCarthy and the wider sector, although the detail of the exemption will have to be known before we are able to assess the financial implications fully,’ said Millington.

‘The risks around McCarthy have materially reduced as result of this proposal.’

[techno20] 15/10/2018 18:39

MHCLG’s proposal out. Should hopefully bounce tomorrow. Suspect this’ll have taken a significant amount of lobbying, so the MCS mgmt deserve credit for the outcome.

[finkie] 25/9/2018 10:28

wow peel suggesting 10% upside on MCS awesome guys......

[speedsgh] 25/9/2018 10:02

Peel Hunt are joint corporate broker to MCS...



Peel Hunt today reaffirms its buy investment rating on McCarthy Stone Plc (LON:MCS) and raised its price target to 150p (from 135p)

[speedsgh] 25/9/2018 10:00

FY19-FY23 Business transformation strategy -

Since the Company's IPO in November 2015 the business has faced a number of market headwinds including political uncertainty following the outcome of the vote to leave the European Union and a lack of Government support for the retirement housebuilding sector. These headwinds have resulted in a challenging economic backdrop, lowering consumer confidence and consequently reducing volumes in the secondary housing market with UK housing transactions showing a decline of c. 40% since 2015.

The Board announced earlier this year that it would be undertaking a strategic review and is today announcing the results of that review which will position the business to succeed in this more challenging market environment...

Directorate Change -

McCarthy & Stone (the 'Group'), the UK's leading developer and manager of retirement communities today announces the appointment of John Tonkiss as Chief Executive Officer (CEO). He will take the role with immediate effect.

The appointment follows a formal search process to appoint a replacement CEO, which has been led by Paul Lester, Chairman of the Group and which considered both internal and external candidates for the role. John has been interim CEO of McCarthy & Stone since 1 September 2018, following Clive Fenton's retirement on 31 August 2018. Prior to this, John was the Group's Chief Operating Officer...

[speedsgh] 06/9/2018 09:07

Full Year 2018 Trading Update -

· Full year revenue is expected to be c.£670m (2017: £661m) supported by a 10% increase in average selling price to c.£300k (2017: £273k) reflecting continuing improvements in the sales mix, as well as quality and location of our developments.

· The Group achieved total legal completions of 2,134 units (2017: 2,302) during the period, with volumes and operating profit constrained, as expected, by the heavy H2 weighting of first occupations, continuing economic uncertainty coupled with a slower secondary market and a softening of pricing, particularly in the South, during the second half of the year.

· The Group's sale of the Freehold Reversionary Interests was successfully completed in August with a total cash value of c.£25m.

· Operating profit for the year is now expected to be within the current analyst forecast range of c.£65m to c.£73m (2017 operating profit: £96m).

· Year end net cash is expected to be c.£4m (2017: net cash of £31m).

· The Group delivered 68 first occupations during the year, representing a substantial increase on 49 first occupations in 2017.

· Year end forward order book is currently c.23% ahead of prior year at c.£174m (2017: £141m) supported by 69 sales releases during the year (2017: 52).

· In response to the uncertainty resulting from the Government's announcement on ground rents, the Group exercised additional caution throughout the year with 54 land exchanges (2017: 75) and 37 planning consents (2017: 64) achieved during the period. This lower level of activity is the result of a more measured approach to land buying and further time taken to renegotiate s.106 contributions with local planning authorities in order to partially mitigate the potential impact of zero-rating future ground rents on new build properties.

John Tonkiss, Interim Chief Executive Officer commented: "It has been a tough year for the Group with ongoing adverse market conditions continuing to impact the business, and without the benefit of any additional Government support for the retirement housing sector. Build delivery remained strong, however, with 68 (2017: 49) high-quality developments brought to market during the year.

"In light of the continuing challenging market conditions, the Group began a review of its strategy in April. As previously announced, our strategic focus will be on pursuing a more measured trajectory and smoothing our workflow to create a more efficient business. This will naturally lead to a right-sizing of our cost base, with build cost savings being a key area of focus. Additionally, we are continuing to trial a number of strategic initiatives designed to increase customer appeal and offer a broader choice of tenure options, increased flexibility and affordability. We will provide the market with more detail on this at our Strategy Update later this month.

"We are continuing to engage with Government in an effort to secure an exemption from the proposed changes to ground rents. We believe that there is a strong case for a specific exemption for the retirement housebuilding sector and we are awaiting clarification on this matter. Until this is received, we continue our planning to try and mitigate the potential impact on the business, including maintaining discipline around our cash position and adopting a more measured approach to securing land.

[finkie] 21/8/2018 13:32

they will be yes

[crystball] 13/8/2018 17:34

Are they insured for this?