McCarthy, 60, will relinquish day-to-day control to chief executive Keith Lovelock from January 2001, but will remain on the board as non-executive chairman. Lovelock, 59, will become deputy chairman.
The results for the six months to 29 February show pre-tax profit up 67% to £20.2m compared with the same period last year. Turnover rose 27% to £65.5m.
The average gross margin on the 701 units sold was 42.4%, up from 40% a year ago and comfortably ahead of other housebuilders’ margins.
McCarthy said that the company would grow by building higher-value properties on more valuable sites over a wider area, rather than by efficiency savings.
McCarthy’s move into the back seat comes after he successfully rebuilt the niche housebuilder following the 1990s recession.
He said: “I think I have put the company back in the forefront; the next stage of the strategy is best left to a younger set. I’ve been planning the succession for the past three years.”
The outgoing chairman dismissed rumours that bids were being invited for the company or for his personal 18% stake. “I think it was just speculation based on the fact that I’d turned 60,” he said.
