Cash-rich pensioners boost profit at McCarthy & Stone

McCarthy & Stone, the UK's biggest player in the specialist retirement homes sector, continues to thrive as the elderly provide it with an ever-increasing profit margin.
Latest results (12 months to 31 August) show a leap in pre-tax profit to £150m (£120m) on a turnover of £320m (£260m). The 46% margin is at least double the figure achieved by conventional housebuilders.
Chairman and chief executive Keith Lovelock said: "With an ageing population, the demographics and fundamentals are in place for us to continue to expand and maintain our presence in this expanding market."
McCarthy & Stone sold 2,100 units (1,900) and, with the elderly have an increasing amount of cash to pour into their future dwelling place, the average selling price rose to £154,000 (£131,000), an increase of 18%.
The improvement was helped by a slightly higher proportion of two-bedroom units, which accounted for 31% (28%) of throughput.
Buyer statistics show the average age of purchasers rose to 76 (72). Even so, 7% of the builder's new customers took on a mortgage.
The group website has become a more important source of enquiries, with more than a million hits this year.
The investment in a better online marketing programme has been rewarded with a 40% increase in completions arising from this source.
The site now accounts for more than £20m of sales revenue.
"Not only friends and family influencers use the website, but our elderly purchasers are also becoming more active in searching the web," Lovelock said.