Retirement housebuilder McCarthy & Stone has secured a new £200 million bank facility to drive its growth strategy.
Barclays, HSBC, RBS and Santander have provided the five-year revolving credit facility which is repayable in full in December 2019. This replaces an existing £160 million term loan. McStone said that the new facility would provide the group with “working capital flexibility” to support its goal to grow its business so that it is capable of building and selling more than 3,000 units per annum over the medium term.
During the 2013/14 period, McStone saw its legal completions climb 10% to 1,677 against the previous year, with its pre-tax profit lifting from £12.5 million in 2013 to £63.2 million.
Nick Maddock, McStone’s group chief financial officer, said: “We are very pleased to have agreed this financing with our new banking partners. The revolving credit facility provides a flexible and efficient debt structure which will help support the group in its next phase of growth, with the attractive terms agreed reflecting McCarthy & Stone’s leading market position.”