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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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McCarthy & Stone - 40 new sites added

June 2016

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • MCS
  • Price:
  • 221p
Solid maiden interims from retirement homebuilder McCarthy & Stone, which reported revenue up 33% to £250m, with underlying pretax profit increasing 23% to £39.1m. Normally it would make c. one third of profit in H1 but due to start-up costs of the three new regional offices (which reduced operating margins by 3% to 16%) it will be below that this time.The group added 40 new sites to its land bank, bringing in 1,700 plots and taking the total to 10,800 or 5.6 years supply. All planning is in place to cover this year and next year’s expected output and there’s enough land to deliver its 2019 targets of reaching 3,000 units per year.The second half has started strongly with forward orders up 26% at & ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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