RISING house prices helped South Coast retirement homes builder McCarthy & Stone achieve record results for the year.

Pre-tax profit for the year to August 31 came in at £53.5 million - 37 per cent up on the previous 12 months - on turnover of £147 million, up 20 per cent.

Chairman John McCarthy described the results as "quite outstanding" adding: "We have exceeded the market's expectations. We have completed another record trading year although there were clear signs that the market was slowing during the summer months.

"We were actually relieved at this as the strength of the housing market over the preceding 18 months was potentially unsustainable and destabilising for the future."

Work in progress is currently 41 per cent higher than 12 months ago and operating margins have increased from 32 per cent to 35 per cent.

Cash balances have now risen to £58.4 million (1999: £39.9 million). Its return on capital employed was 32 per cent, "among the highest in the industry".

Earnings per share rose to 34.7p (1999: 23.7p). The final dividend is recommended at 7.0p (1999: 4.97p), which would make a total for the year of 8.7p (1999: 6.3p).