McCarthy & Stone margin has a fall

Retirement home specialist McCarthy & Stone saw a slight dip in margins last year - but still made an industry leading 45%.

The massive margin for the 12 months to August 2007 was down on the previous year's 48%. Pre-tax profits hit £51m at the group which de-listed from the Stock Exchange in December 2006 and went private after a £1.1bn take-over battle.

McCarthy is the biggest player in the specialist retirement homes market and turnover at £460m was well ahead of the £370m figure the previous year.

The winner of last year's ownership fight for McCarthy was an HBOS-led consortium known as Mother Bidco. It includes billionaire brothers Simon and David Reuben - though they have now reduced their original stake - and sports shop tycoon Sir Tom Hunter.

The takeover was largely paid for by debt. The latest results reflect that: last year's interest charge ran to £76m, McCarthy ending the period with a net debt still running to £810m.