27 May 2009
Telford Homes Plc (AIM:TEF), the residential developer in East London noted for regeneration projects within public sector partnerships, today announces its preliminary results for the year ended 31 March 2009.
- Profit before tax and exceptional items of £7.3 million (2008 restated: £6.5 million), and profit of £4.3 million after exceptional items
- Continuing to achieve legal completions on properties sold off-plan to the investor market
- Increased emphasis on housing association partnerships and developments that are entirely affordable housing, so that profitable construction work can continue
- £57 million Homes and Communities Agency ("HCA") grant programme that will part finance over 400 affordable homes over the next three years
- Strong relationships with banks central to successful renewal of existing facilities
- Net assets increased to £50.3 million (2008: £48.9 million) being 129.8 pence per share (2008: 130.3 pence)
- Given the Group's focus on controlling cash, the Board has taken the prudent decision not to pay a dividend for the year to 31 March 2009 (2008: 10.0 pence per share)
Andrew Wiseman, Chief Executive of Telford Homes, commented: "The Board has continued to position the Group to withstand the downturn in open market housing and is now receiving grants from the HCA to increase the provision of affordable housing. This will enable us to continue profitable construction with the security of substantial forward sales on these projects. We are continuing to work with each of our customers to achieve successful completions but we are cautious in our expectation of failed contracts, should mortgage availability not improve. Consequently we are putting contingency plans in place to mitigate the impact of failures on cash flow.
"The regeneration of East London is ongoing, and we are confident in the prospects for the area, particularly as the slow down in open market residential construction will exacerbate the shortage of new housing. The Board is cautiously optimistic, noting increased activity at our sales outlets over the last few weeks, steady progress on legal completions and our ability to secure affordable housing revenue."
For further information:
|Telford Homes Plc|
|Andrew Wiseman, Chief Executive||Tel: +44 (0) 1992 809 800|
|Jon Di-Stefano, Financial Director|
|Graham Shore||Tel: +44 (0) 020 7468 7910|
|Chris Lane / Joanne Shears||Tel: +44 (0) 20 7398 7708|
Copies of this announcement are available from the Group at First Floor, Stuart House, Queensgate, Britannia Road, Waltham Cross, Hertfordshire EN8 7TF and on our website www.telfordhomes.plc.uk.