Interim results for the six months ended 30 September 2013

27 November 2013

Telford Homes Plc (AIM:TEF), the London focused residential property developer, today announces its interim results for the six months ended 30 September 2013.

Highlights

• Strong rate of sales maintained with over 450 sales since 1 April 2013
• 100% sold for the year to 31 March 2014, over 80% sold for FY 2015 and over 60% for FY 2016, enhancing visibility over future profits
• Profit before tax increased to £7.7 million (H1 2012: £6.5 million)
• Significant increase in margins before charging interest with gross margin of 28.6% and operating margin of 13.2% (year to 31 March 2013: 24.3% and 9.7% respectively)
• The Board expects further margin improvements in the second half and a substantial increase in profit for the year
• 85% increase in the interim dividend to 3.7 pence (H1 2012: 2.0 pence)
• £20 million share placing proceeds being committed ahead of schedule
• Development pipeline has increased by 23% in 6 months to 2,790 properties (31 March 2013: 2,260 properties)
• Net cash position of £9.1 million (31 March 2013: net debt of £34.4 million) leading to zero gearing for the first time in the Group's history (31 March 2013: 47.3%)
• The Board is very confident of the prospects and growth potential for Telford Homes over the next few years

Jon Di-Stefano, Chief Executive of Telford Homes, commented: "During the period Telford Homes has achieved an impressive rate of sales and has secured significantly higher profit margins, resulting in growth that has been ahead of market expectations. The market in inner London remains buoyant and exceptional demand has been experienced at many of the Group's developments.

"The Board is actively working to increase the Group's development pipeline following the placing to raise £20 million in June 2013. Land is currently being acquired ahead of our forecasts and this is expected to lead to a quicker investment return on the new equity. Significant land acquisitions include two new developments in the centre of Stratford near the Olympic Park and the Westfield shopping centre. In total the Group's development pipeline has increased by 23% in the last six months.

"Telford Homes has excellent visibility over future profits and, to reflect the Board's confidence in the market and our strong development pipeline, we are pleased to increase the interim dividend by 85% to 3.7 pence."

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