Retirement specialist aims to double completion rates
McCarthy & Stone has secured a £200m working capital loan to support its strategy to double its current rate of completions.
The revolving credit facility is being provided by Barclays, HSBC, RBS and Santander and is due to be repaid in full by the specialist retirement housebuilder in December 2019.
The facility replaces an existing £160m loan and provides working capital that McCarthy & Stone can draw on to support its strategy to build and sell more than 3,000 units per annum.
McCarthy & Stone’s results for 2014 showed the business achieved a 10% increase in completions from 1,527 to 1,677, generating pre-tax profit of £63.2m, compared to £12.5m in the previous year.
Nick Maddock, group chief financial officer, said the new loan facility brought the company’s capital structure and financing costs into line with McCarthy & Stone’s housebuilder peers.