McCarthy & Stone Eyes New Stock Market Home

The UK's biggest builder of retirement homes will this week take another step towards a return to London's stock market when it lines up advisers for a float.

Sky News understands that McCarthy & Stone (M&S) has scheduled a series of presentations from bankers which will pave the way for a post-General Election listing.

The appointment of banks will come just weeks after M&S reported a 76% rise in half-year pre-tax profit to £32m, on the back of strong sales growth.

M&S, which was among a group of housebuilders which were forced into debt restructurings in the aftermath of Britain's banking crisis, has seen a remarkable transformation in its fortunes.

Previously part-owned by the state-backed Lloyds Banking Group, which had been a lender to the company, it was taken over by a consortium of investors including Alchemy Partners, Goldman Sachs (NYSE: GS-PB - news) and TPG (Taiwan OTC: 6521.TWO - news) .

Taken private in 2006 in a £1.1bn deal, it is unclear how much a listing will value M&S at this year, but it is likely to crystallise a handsome profit for the current shareholders.

Last year, M&S recruited a new management team, led by the former Persimmon (Other OTC: PSMMY - news) chief executive John White as its chairman, and former Barratt Developments (LSE: BDEV.L - news) executive Clive Fenton as its chief executive.

Responding to the results last month, Mr White said: "The housing market has remained strong during the first half, as has the demand for specialist retirement accommodation.

"The challenges presented by an ageing population means that there remains a pressing need to build more specialist retirement housing, and we have been actively calling on all political parties to focus on this area ahead of the forthcoming general election.

"It is imperative that they look beyond the needs of first time buyers and proactively encourage more and better housing options for our growing elderly population."

Mr White also repeated a target of investing £2bn in land during the next four years to deliver 12,000 new homes.

Housebuilders such as M&S are expected to benefit from further government-backed initiatives to accelerate the growth of housing stock during the next parliament, with Labour and the Conservatives both committing to doing so in their manifestos.

Rothschild, the investment bank, is working with M&S's management on the appointment of bookrunners for a stock market flotation.

M&S declined to comment on Tuesday.