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McCarthy & Stone H1 Profit Declines On Exceptional Costs; Revenue Up 17%

McCarthy & Stone plc (MCS.L) reported that its statutory profit before tax decreased by 66% to 4 million pounds for the period ended 28 February 2019 from 11 million pounds, prior year, impacted by 14 million pounds of exceptional costs incurred in relation to the delivery of the Group's new business strategy including restructuring and redundancy costs, realignment of land bank to deliver steady state volumes and consultancy fees. Earnings per share was 0.5 pence compared to 1.5 pence. Underlying profit before tax increased by 64% to 19 million pounds. Underlying basic earnings per share increased by 71% to 2.9 pence.

First-half revenue increased by 17% to 281 million pounds from 240 million pounds, reflecting 11% increase in volumes to 845 legal completions together with a 7% improvement in the average selling price.

John Tonkiss, CEO, said: "We are mindful of the economic and political uncertainty that all businesses are currently facing but are confident that our fiscal 2019 expected volume out-turn remains in line with the Board's expectations with increased use of discounts and incentives, particularly part-exchange, now expected to continue into second-half to counteract more challenging secondary market conditions."

The Group announced an interim dividend of 1.9 pence per share, to be paid on 11 June 2019 to all ordinary shareholders on the register of members at close of business on 3 May 2019.

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