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McCarthy Stone

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McCarthy & Stone Limited
McCarthy Stone
Formerly
  • McCarthy & Stone (1977–2008)
  • McCarthy & Stone Limited (2009–2015)[1]
  • McCarthy & Stone plc (2015–2021)[1]
IndustryReal estate
Founded1977
HeadquartersBournemouth, England, United Kingdom
Key people
Revenue£725.0 million (2019)[2]
£48.4 million (2019)[2]
£34.9 million (2019)[2]
Number of employees
2,433 (2019)[2]
ParentLone Star Funds
Websitemccarthyandstone.co.uk Edit this at Wikidata

McCarthy Stone is a developer and manager of retirement communities in the United Kingdom.

History

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John McCarthy and Bill Stone became partners in 1961, and in 1977 they built their first retirement housing development in Hampshire. Subsequently, they ceased other building work to concentrate on developing specialist housing for elderly people.[3][4] The company quickly became the largest developer and manager of retirement communities for private ownership in the UK. By 1982, when the company was floated on the Unlisted Securities Market, the company had completed 15 retirement housing developments and was selling around 200 units per year.[5] Growth was rapid after the flotation, and by 1984 the company operated on a national basis with annual sales approaching 1,000 units. The business was exceptionally profitable around this time due to a rapidly ageing population.[3] Annual sales reached 2,601 units in 1988.[3]

During late 1990, a pre-tax loss of £10.8 million was recorded, resulting in interim dividend payments being reduced.[6][7] In early 1991, John Gray was appointed as the joint managing director of McCarthy and Stone while John McCarthy retained the chairmanship; several other senior management changes were made around this time.[8] In June of that year, in response to sustained losses and the desire to increase its construction activity and minimise borrowing, the company launched a rights issue aimed at securing £13.3 million.[9] Losses continued to be recorded throughout the early 1990s recession.[10][11]

By early 1994, it had become clear that McCarthy Stone was heading towards recovery; several of its domestic competitors, in comparison, had gone out of business during the economic downturn.[12][13] During the mid 1990s, the firm was reportedly the only large player left in the sheltered housing market.[14] Amid a wider economic recovery, the company's sales figures sharply increased during the late 1990s and early 2000s.[15][16]

In January 2001, the firm's founders sold £8 million worth of stock in McCarthy Stone.[17] During the early 2000s, it took preparatory measures for an economic downturn.[18] In late 2001, the company decided to cease its design-and-build activities as a cost-cutting measure.[19] In 2005, McCarthy & Stone sold 12 of its investment property interests to Owners Provident in exchange for £25 million.[20]

During mid 2006, a bidding war broke out over the ownership of McCarthy Stone.[21][22] Later that year, following the completion of a takeover bid of over £1 billion from a consortium including David and Simon Reuben and Sir Tom Hunter, the company was de-listed from the London Stock Exchange and became privately owned.[23][24] At the time, it was the biggest takeover deal of a British housebuilder in history.[25]

In May 2008, the company opted to postpone the start of new construction projects due to a credit crunch.[26] During February 2009, amid the economic effects of the Great Recession, McCarthy Stone was reportedly facing administration as its lenders publicly disagreed on how to address the firm's debt burden of £900m.[27] A debt-for-equity swap was performed later that year, which reduced Lloyds Bank's stake in the firm to 25 per cent.[28]

At one point, McCarthy Stone was reportedly planning to undertake an IPO during 2012, but this did not take place.[28] One year later, the company underwent refinancing and restructuring shortly after the appointment of new leadership.[29][30] During November 2015, the firm was re-listed on the London Stock Exchange.[31][32] By late 2016, trade was reportedly growing steadily for the firm.[33] In 2018, McCarthy & Stone's boss announced his departure amid a drop in profits.[34]

During 2020, the business was negatively impacted by the COVID-19 pandemic, which not only delayed building projects but drastically diminished sales for that year.[35][36] In late 2020, the directors accepted a takeover bid from American investment firm Lone Star Funds.[37] Shareholders approved the takeover offer worth £647m.[38][39]

In April 2021, the company announced a new investment partnership with Macquarie Group and John Laing Group to finance its new rental portfolio.[40][41]

The company is the only British developer, of any size or type, to win the full five-star rating in the Home Builders Federation's customer satisfaction awards every year the survey has been run.[42]

Services

[edit]
The company's development in Poole, Dorset
McCarthy & Stone Head office in Bournemouth UK
The company's head office, Bournemouth

The company's in-house Services teams operate its Retirement Living and Retirement Living PLUS (Extra Care) schemes built since 2008.[43] In its Retirement Living PLUS schemes, services include the provision of CQC-regulated care and support. It is the largest provider of new Extra Care developments in the UK.[44]

It remains as the landlord and managing agent on all developments opened since 2008, and hence is legally responsible for the operation of these schemes.[45]

As of 2018, the company provides a choice of tenure including rental and affordable and private shared ownership, as well as an expanded care offering.[46]

It began providing Homes England's Older People's Shared Ownership in 2021, to increase the provision of affordable housing for older people.[47]

It is one of the few developers to use Modern Methods of Construction on its construction sites, through its partnership with Remagin.[48]

Awards

[edit]
Year Award
2023 Property Developer of the Year[49]
2022 Great Place to Work Wellbeing List 2022[50]
2021 Customer Satisfaction Five Star Award[51]
2020 Housing with Care Award[52]
2019 Housing for Older People Awards[53]
2019 NHBC Health and Safety Awards[54]
2019 Customer Satisfaction Five Star Award[55]
2018 Housebuilder Awards[56]
2018 ARMA ACE Awards[57]
2018 NHBC Health & Safety Awards[58]

Charity initiatives

[edit]

In 2017, the company raised over £250,000 for the Royal Voluntary Service.[59] The company's charity partner for 2019 was Beanstalk, a national learning and literacy charity for young children.[60] The company has also supported several smaller charities.[61]

In 2020, it established the McCarthy Stone Charitable Foundation, which raised £230,000 in its first year.[62]

References

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  1. ^ a b "McCarthy & Stone Limited overview - Find and update company information - GOV.UK". Companies House. 17 June 2008. Retrieved 23 February 2024.
  2. ^ a b c d "Annual Report and Accounts 2019" (PDF). McCarthy Stone. Retrieved 3 March 2020.
  3. ^ a b c Wellings, Fred: Dictionary of British Housebuilders (2006) Troubador. ISBN 978-0-9552965-0-5
  4. ^ "The money-making revelations of John McCarthy, the founder of McCarthy & Stone". The Leaseholder Association. 4 February 2016.
  5. ^ Company Prospectus (1982)
  6. ^ "18May90 UK: MCCARTHY AND STONE CHIEF CONFIDENT DESPITE CUT IN INTERIM DIVIDEND PAYMENTS". constructionnews.co.uk. 17 May 1990.
  7. ^ "21Dec90 UK: MCCARTHY AND STONE TURNS IN THUMPING LOSS OF £10.8 MILLION PRETAX IN YEAR TO AUGUST". constructionnews.co.uk. 20 December 1990.
  8. ^ "19Apr91 UK: APPOINTMENTS AT MCCARTHY AND STONE". constructionnews.co.uk. 18 April 1991.
  9. ^ "07Jun91 UK: MCCARTHY AND STONE TO RAISE £13.3 MILLION THROUGH RIGHTS ISSUE TO REDUCE BORROWINGS". constructionnews.co.uk. 6 June 1991.
  10. ^ "07May92 UK: MCCARTHY AND STONE REPORTS PRETAX LOSS OF £6.9M FOR SIX MONTHS TO END FEBRUARY 1992". constructionnews.co.uk. 7 May 1992.
  11. ^ "06May93 UK: MCCARTHY LOSS – MCCARTHY AND STONE". constructionnews.co.uk. 6 May 1993.
  12. ^ "Bottom Line: McCarthy stays up". The Independent. 25 April 1994.
  13. ^ "28Apr94 UK: M AND S NEARS BREAK-EVEN – MCCARTHY AND STONE". constructionnews.co.uk. 28 April 1994.
  14. ^ "Firms flee sheltered housing market". constructionnews.co.uk. 10 August 1995.
  15. ^ Fishlock, Bill (28 November 1996). "Barratt, McCarthy and Tay surge ahead as housing recovery takes hold Autumn sales leap lifts house builders". constructionnews.co.uk.
  16. ^ "McCarthy rises". constructionnews.co.uk. 24 February 2000.
  17. ^ "£8m bonanza for McCarthy & Stone founders". citywire.com. 18 January 2001.
  18. ^ Thompson, Gordon Jon (23 November 2001). "McCarthy & Stone battens down the hatches". building.co.uk.
  19. ^ "McCarthy ditches D&B to curb costs". constructionnews.co.uk. 22 November 2001.
  20. ^ "McCarthy & Stone cash boost". constructionnews.co.uk. 18 July 2005.
  21. ^ Barriaux, Marianne (18 July 2006). "Builder agrees £1bn takeover but rival offer prompts bid war hopes". The Guardian.
  22. ^ Fildes, Nic (5 September 2006). "Barclays pulls out of bid battle for McCarthy & Stone". The Independent.
  23. ^ "McCarthy's demographic push". Shares Magazine. 10 March 2016.
  24. ^ "HBOS wins battle for McCarthy & Stone". building.co.uk. 8 September 2006.
  25. ^ "Consortium set for McCarthy & Stone acquisition deal". house-builder.co.uk. 5 September 2006.
  26. ^ Saunders, Tim (4 May 2008). "McCarthy and Stone hit by credit crunch". bournemouthecho.co.uk.
  27. ^ Teather, David; Moya, Elena; Treanor, Jill (20 February 2009). "Creditors' quarrel may force home builder into early retirement". The Guardian.
  28. ^ a b O'Kelly, Sebastian (21 July 2014). "Will hedge-funders clean up in £500 million McCarthy and Stone float?". leaseholdknowledge.com.
  29. ^ "New McCarthy & Stone boss wields the axe". Construction Index. 6 March 2014. Retrieved 10 February 2016.
  30. ^ "89 jobs could go as McCarthy & Stone announces plans to restructure". bournemouthecho.co.uk. 6 March 2014.
  31. ^ "McCarthy & Stone prices IPO at 180p per share". Digital Look. 6 November 2015. Retrieved 10 February 2016.
  32. ^ Gwyther, Matthew (15 October 2015). "McCarthy and Stone: Stacking grannies in property plays". managementtoday.co.uk.
  33. ^ Crosland, Jonas (12 October 2016). "Buyers return to McCarthy & Stone". investorschronicle.co.uk.
  34. ^ Knowles, Tom (20 June 2018). "McCarthy & Stone boss is pensioned off as profits fall". The Times.
  35. ^ Hodgson, Joanna (11 November 2020). "McCarthy & Stone warns retirement housing market to remain difficult". standard.co.uk.
  36. ^ "McCarthy & Stone falls into the red as COVID-19 nearly halves sales". insidehousing.co.uk. 16 July 2020.
  37. ^ "McCarthy & Stone board backs US private equity takeover". The Construction Index. 23 October 2020. Retrieved 23 October 2020.
  38. ^ "McCarthy & Stone shareholders vote in favour of £647m takeover deal". Evening Standard. 8 December 2020. Retrieved 8 December 2020.
  39. ^ Gardiner, Joey (29 January 2021). "Lone Star takeover of McCarthy & Stone to complete today". housingtoday.co.uk. Retrieved 26 March 2021.
  40. ^ "John Laing : Macquarie Group Limited - McCarthy Stone's UK retirement living rental portfolio secures finance from John Laing and Macquarie Capital | MarketScreener". marketscreener.com. 9 April 2021. Retrieved 4 January 2022.
  41. ^ "Travers Smith advises McCarthy Stone on agreement to secure £200m total financing for its UK retirement living rental portfolio". traverssmith.com. 25 May 2021.
  42. ^ "McCarthy & Stone Sheffield team award winners again for 14th consecutive year". thestar.co.uk. 3 May 2019. Retrieved 17 March 2022.
  43. ^ Pamben, Deven (31 July 2019). "McCarthy & Stone to deliver care services directly". LaingBuisson News. Retrieved 4 January 2022.
  44. ^ Peart, Lee (31 July 2019). "McCarthy & Stone parts ways with Somerset Care and launches own extra care services". Care Home Professional. Archived from the original on 30 March 2023. Retrieved 4 January 2022.
  45. ^ "McCarthy Stone Great Place to Work UK | The global authority on workplace culture". www.greatplacetowork.co.uk. Retrieved 17 March 2022.
  46. ^ "Modular Construction and the Specialist Housing Sector". www.housinglin.org.uk. 2 May 2019. Retrieved 4 January 2022.
  47. ^ Pamben, Deven (2 September 2021). "McCarthy Stone receives funding to deliver 1,500 retirement properties". LaingBuisson News. Retrieved 7 October 2024.
  48. ^ "UK's largest retirement home builder commits to 40 new MMC developments". Inside Housing. Retrieved 7 October 2024.
  49. ^ ncompass. "Previous Years' Winners". LaingBuisson Awards. Retrieved 7 October 2024.
  50. ^ "UK's Best Workplaces for Wellbeing 2022". www.greatplacetowork.co.uk. Retrieved 17 March 2022.
  51. ^ "Record-breaking award for customer satisfaction". Retiremove. 30 March 2021. Retrieved 17 March 2022.
  52. ^ ncompass. "LaingBuisson Awards 2020 Book of the Night". LaingBuisson Awards. Retrieved 4 January 2022.
  53. ^ "Regional and National Results". Housing Awards. Retrieved 18 December 2019.
  54. ^ "Archive 2019 | NHBC". www.nhbc.co.uk. Retrieved 18 December 2019.
  55. ^ "CSS Star rating results". www.hbf.co.uk. Retrieved 18 December 2019.
  56. ^ "Housebuilder Awards 2018". www.house-builder.co.uk. Retrieved 18 December 2019.
  57. ^ "2018 Winners & Finalists – ARMAAwards". awards.arma.org.uk. Retrieved 18 December 2019.
  58. ^ "Award-Archive-2018 | NHBC". www.nhbc.co.uk. Retrieved 18 December 2019.
  59. ^ "McCarthy & Stone raises more than £250,000 for RVS". PHPD Online. 9 April 2018. Retrieved 18 December 2019.
  60. ^ "McCarthy & Stone 2019 charity partnership". Coram Beanstalk. 24 January 2019. Retrieved 18 December 2019.
  61. ^ "McCarthy and Stone seeks local charity to support". Hereford Times. 5 July 2019. Retrieved 18 December 2019.
  62. ^ "Read our 2021 Impact Report". McCarthy Stone Foundation. 16 December 2021. Retrieved 17 March 2022.
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