17 April 2007
Telford Homes Plc issues the following trading update for the year ended 31st March 2007. Preliminary results will be announced on 22nd May 2007.
The strong sales performance reported in our interim report on 21st November 2006 has continued into the second half of the year with the market in East London remaining buoyant. Consequently sales and margins for the year are in line with revised expectations following our trading update in September 2006.
New development sales launches in the second half of the year have been successful with all 53 private homes at Metro East, E3 and all 144 private homes at SoBow, E3 sold. Contracts were exchanged on 81 of these homes prior to the year end and a further 115 have exchanged since.
The first phase of 184 private apartments at Queen Mary's Gate, our major development in South Woodford, continues to sell well with 112 now sold, largely to the owner-occupier market.
In November we reported that the Company had exchanged contracts to purchase a site in Bethnal Green Road near Liverpool Street station. This was acquired in a joint venture with Genesis Housing Group and is expected to achieve a planning consent for more than 300 homes. The equity invested in this site represented the first investment of the £14.4 million net placing funds raised in 2006. Since then we have purchased a number of new development sites including SoBow, E3 from one of our Housing Association partners and a significant site in Greenwich acquired in a joint venture with The Royal Bank of Scotland. The latter is subject to receipt of a planning consent for 372 homes which is expected to be granted in the next few months.
Work has commenced on the new homes on the British Estate, E3 as part of the regeneration by the social landlord, East End Homes. We expect strong demand for these properties at the sales launch. Furthermore we have been confirmed as the development partner for East End Homes on a number of other well located estates in Tower Hamlets.
As a result of our trading performance the Company expects to announce results in line with market expectations for the year ended 31st March 2007.
|Telford Homes Plc|
Andrew Wiseman, Chief Executive
Jon Di-Stefano, Financial Director
|Tel: +44 (0) 1992 809 800|