09 October 2007
Telford Homes Plc (AIM:TEF), the residential developer in East London noted for regeneration projects within public sector partnerships, is pleased to give the following trading update ahead of its interim results which will be released on 4 December 2007.
Telford Homes has continued the successful start to the year, as reported at the Annual General Meeting on 5 July 2007. Sales in the first half of the year have been strong with the results for the six months to 30 September 2007 in line with expectations. The Company has continued to market properties at an early stage in construction in order to secure future cash flow and reduce the risk in each development. There are around 1,650 properties currently under construction across 13 developments and over 1,400 are sold with contracts exchanged. In addition the rate of sales at Queen Mary's Gate in Woodford, the Company's only significant sales outlet, has been maintained through the summer. There has been little immediate impact from rising interest rates and the recent disruption in credit markets and with full year results weighted towards the first half the Company is well on track to meet market expectations for the year to 31 March 2008.
The divisional structure created three years ago has been successful in managing the Company's growth to date and enables the creation of further divisions depending on operational requirements. Consequently, due to continued expansion, the Company is in the process of creating a third division alongside Alto and Metro which will increase the Company's capacity for mid-sized developments. The new division, to be named Strada, will be under the control of Mark Parker who will continue to be responsible for Telford Homes Metro.
Telford Homes is pleased to announce that it has been chosen as a pre-qualified partner for the Housing Corporation. The Company was approached directly and asked to participate in the process, and was successful in its application. Now that the Company has been awarded this status, it is able to bid for grants for its developments, a strategic advantage, as it affords Telford Homes more flexibility and control in the financing of affordable housing. This status reflects the Company's long term commitment to public sector partnerships.
Andrew Wiseman, Chief Executive of Telford Homes, commented: "The Board is pleased that the Company has achieved further success in the first half of the year, despite the difficulty of bringing homes to market due to delays in the planning process. Continuing strength in the local rental market has encouraged demand from buy-to-let investors and consequently we remain able to pre-sell our properties and reduce the risk in each development. We have seen little immediate impact from rising interest rates and the recent disruption in credit markets and are well on track to meet market expectations for the year to 31 March 2008.
"The new division is indicative of Telford Homes' growth, and will enable the Company to pursue more opportunities in the future. We are delighted to have been chosen as a pre-qualified partner by the Housing Corporation, as this demonstrates our commitment to public sector partnerships. Overall, the progress made in the first half of this year demonstrates that the Company's solid infrastructure and external partnerships provide strong support for further growth."
For further information:
|Telford Homes Plc|
|Andrew Wiseman, Chief Executive||Tel: +44 (0) 1992 809 800|
|Jon Di-Stefano, Financial Director|
|Alex Borrelli||Tel: +44 (0) 020 7408 4090|
|Chris Lane / Joanne Shears||Tel: +44 (0) 20 7398 7700|