The firm has centralised procurement and struck new regional pay deals to keep a lid on rising build costs.

McCarthy & Stone said: “We have introduced a new central procurement process at Group level to strengthen our procurement discipline and ensure that we take advantage of our significant purchasing power.

“This is already providing benefits in controlling our build costs, which, as with other house builders, have been subject to some upward price pressure.

“In addition, regional agreements are being reviewed to keep labour costs under control, and build techniques and alternative methods of construction are being considered.”

The company is also restructuring with around 10% of staff – around 90 people – set to lose their jobs.

The changes helped the company more than double profits to £21.6m from £10.5m last time on revenue up 49% to £149.7m.

McCarthy & Stone said it would invest £1.5bn in land and construction over the next four years with building work set to start on 39 new sites this year.

John White, chairman said: “We are pleased to report significant improvements across our operations.

“We have had a successful first half to the financial year, more than doubling our profits.

“We are now in a strong position to increase volumes, improve margins, and continue to grow the value of the business.  We are on target to legally complete more than 1,700 units this year.

“We remain focused on leading the retirement housing market, both in terms of unit delivery and build quality, while growing our business profitably.

“Our previously announced business review, which is currently being implemented, will ensure that we operate efficiently while providing an increase in much-needed retirement housing across the whole market.”