McCarthy & Stone calls in NM Rothchild

McCarthy & Stone (M&S), the housebuilder specialising in retirement homes, has called in bankers NM Rothschild as financial advisers to “look at all the options”.

Michael Ball, finance director, would not be drawn specifically on whether the reason is to look at ways in which the group’s £800m debt could be restructured, in order to push back the various key repayment dates.

As things stand, they run through until 2012 (at the soonest) and 2014 (at the latest).

However, when asked if all the options means the possibility of M&S re-floating on the Stock Exchange, Ball said: “That’s unlikely.”

He added: “They were also appointed when we were taken private in 2006. I don’t want to pre-empty what they might look at. This is a difficult trading environment.

“There are pros and cons of being private compared with being public but ultimately the fundamentals are the same.

“The underlying demand is as robust as it has ever been. The long-term prospects are excellent but in the short term, and looking at things on a wider front, there is a lack of available mortgage finance. That does have a bearing on us as most of our potential customers have a property to sell.”

HBOS, which owns 20% of M&S, has a place on the housebuilder’s board. “They are very supportive in the longer term,” said Ball.