Retirement property builder McCarthy & Stone (LON:MCS) recorded a 52 percent drop in profits in its latest half year results, due to fewer building completions and “subdued market conditions”.

Pre-tax profit dropped 52 percent to £10.5 million, but 12 percent fewer completions were offset by a 15 percent rise in selling prices.

The group warned that growth would be modest over the next two years, with a decline in land exchanges and planning consents in the half-year following a government proposal to set ground rents.

Revenue rose by 1 percent over the half year period, hiking its interim dividend to 1.9p per share, from 1.8p in the previous corresponding period.

“Trading was constrained by the ongoing subdued conditions in the secondary market and the lower number of new first occupations resulting from a pause in build start activity following the EU Referendum in June 2016,” the company said.

“We continue to work with the government to seek an exemption from these changes due to the unique viability model of retirement housing”.

McCarthy & Stone said its full-year guidance given in March remained unchanged, and was expected to be in line with the current range of analyst forecasts.

Shares in McCarthy & Stone (LON:MCS) are currently down 7.58 percent 126.71 (0823GMT).