SOUTH coast housebuilder McCarthy & Stone's focus on retirement homes continued to reap rewards this week as the company turned in record annual results.

McCarthy & Stone, founded at New Milton and now based in Bournemouth, described the home-owning retirement community as now "more affluent and more numerous'' as it announced pre-tax profits had risen 25 per cent to £75.4m in the year to August 31.

Since the start of the new financial year, the group said it remained in "excellent health" after experiencing higher levels of inquiries and reservations compared with a year earlier.

Chairman John McCarthy added: "This is extremely encouraging. We have a land bank that will deliver us profitable growth and a balance sheet that can finance it.''

Latest annual figures show the company sold 1,671 units - an increase of eight per cent on last time - from 118 sites around the country.

The average selling price rose 13 per cent to £112,000 and was driven by strong demand in the south-east, although profitability was also described as "impressive" in the Midlands and south-west.

The company added that its newer western and north-east regions achieved an improved performance, while the Scottish region met its objectives despite poor weather impacting on three sites.

Following the launch of new regional offices, McCarthy & Stone now employs almost 800 people. Turnover across the group rose to £187.8m compared with £167.5m a year earlier.