Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Bottom Line: Be shy and retiring

Thursday 09 December 1993 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

THE MOST surprising thing about McCarthy & Stone, the retirement home developer, is that it was still around yesterday to announce its now traditional loss for the year to August. In the past four years it has notched up an aggregate loss of more than pounds 50m, and a deficit on its distributable reserves means that it cannot pay a dividend.

The company believes that last year's pounds 11.2m loss, compared with a pounds 20.2m deficit in the previous 12 months, represents the now largely irrelevant nadir. Irrelevant because since the year-end the disposal of the company's accumulated ground rents for pounds 30m has reduced debts to pounds 20m, only 30 per cent of net assets of pounds 66m. An 11 per cent increase in sale prices is apparently running faster than land inflation, which is pushing up margins, and the banks are now happy to lend more to fund expansion.

That is the optimist's scenario, and those who bought at 400p at the peak in 1988 cannot afford to be anything else. For anyone else, even a 42 per cent discount to net assets should not blind them to a bad record. The shares, down 1p at 38p, are highly speculative.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in