A RETIREMENT home builder bidding to transform Darlington’s former arts centre into accommodation says rising demand has bolstered its finances.

McCarthy and Stone says underlying pre-tax profits lifted 40 per cent to £88.4m for the year to August 31, with revenues 25 per cent better off at £485.7m.

It also saw sales rise 15 per cent to 1,923 and forward sales forge ahead to £177m.

The company wants to convert part of the former Darlington Arts Centre into retirement accommodation.

Bosses say the development will include 35 one and two bedroom apartments.

The project still needs planning permission, but the company says construction could start in spring next year, with homeowners moving in by the middle of 2017.

John White, group chairman, said: “It has been another strong year of profitable growth and we continue to capitalise on the increasing demand for specialist retirement housing.

“We are well-positioned to benefit from this unprecedented opportunity and the scale and quality of our land bank provides significant visibility over the medium-term for our potential rapid growth.”

The firm has a number of other developments in the region.

As well as its Darlington proposals, the company’s homes are on sales in Northallerton, North Yorkshire, and it is building properties in Guisborough, east Cleveland, and York.

A further development, in Ripon, is subject to approval from planning officials.