Shares in retirement housebuilder McCarthy & Stone (LON:MCS) tumbled nearly 15 percent at market open on Tuesday, after operating profit fell by nearly £100 million.

The group reported an expected operating profit for the full year of between £65 million and £80 million, a big drop on last year’s £96 million.

The forward order book also took a massive hit, dropping to £67 million from last year’s £706 million.

“Whilst this is lower than management’s expectations given the higher number of outlets, it is nevertheless sufficient to deliver within the new guided range,” McCarthy & Stone said.

“Incentives and discounts are also expected to remain approximately in line with recent prior year levels.”

The builder reported it had seen a “noticeable decline” in reservation rates, as customer exercise more caution.

The group also announced that Clive Fenton, who joined McCarthy & Stone as CEO four years ago, would be leaving the company.

“Having reached the age of 60, it is right that I now stand aside at the end of our financial year to enable a new chief executive to be responsible for this journey. Until then, I will remain focussed on delivering the best possible result for the year end and assisting the board with the necessary transition arrangement”, Fenton said.

Shares in McCarthy & Stone are currently trading down 14.79 percent at 111.20 (0935GMT).