Interim results for the six months ended 30 September 2012

28 November 2012

Telford Homes Plc (AIM:TEF), the residential developer in East London today announces its interim results for the six months ended 30 September 2012.

Highlights

• Revenue increased significantly to £78.3 million (H1 2011: £58.6 million), including 252 open market completions (H1 2011: 125)
• Considerable improvement in margins with gross margin before interest of 23.8% and operating margin before interest of 11.4% (year ended 31 March 2012: 17.6% and 6.2% respectively)
• Profit before tax more than quadrupled to £6.5 million (H1 2011: £1.5 million)
• The Group has sold over 90% of the target open market completions for the year to 31 March 2013 and over 60% for the following year
• Strong demand from both owner-occupiers and investors in the inner London locations that are now the core of the Group’s land buying strategy
• Reduction in net debt to £31.7 million (31 March 2012: £54.6 million) and gearing to 45.7% (31 March 2012: 82.4%) with both expected to increase again over the next 12 months as sites are acquired and developed
• Corporate loan facility increased to £90 million during the period,/
• The Board is confident that profits for the year to 31 March 2013 will be in line with market expectations and anticipates significant growth in the following year

Jon Di-Stefano, Chief Executive of Telford Homes, commented: “I am very pleased to be able to report a quadrupling of profits in the first half of the year and a five percentage point increase in our operating margin. We are achieving a strong rate of sales to both investors and owner-occupiers with the Group now over 90 per cent sold for this financial year and already over 60 per cent sold for the following year. Our development pipeline represents five years of gross profit based on the current year and, with the London market remaining buoyant, the Board expects Telford Homes to continue to grow over the coming years.”

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