01 December 2010
Telford Homes Plc (AIM:TEF), the residential developer in East London noted for regeneration projects within public sector partnerships, today announces its interim results for the six months ended 30 September 2010.
- Revenue for the six months ended 30 September 2010 was £58.2 million (H1 2009: £85.9 million), in line with expectations for the year given the Group's policy during the recession of not acquiring new land
- Profit before tax and after exceptional items was £2.0 million (H1 2009: £5.7 million)
- 133 open market homes legally completed (H1 2009: 224 homes)
- Interim dividend of 1.25 pence per share (H1 2009: 0.75 pence) reflecting the Board's confidence in future growth
- Over 250 new sales achieved since 1 April 2010 despite the lack of mortgage finance and an uncertain economic outlook
- Cash balances remain strong at £22.0 million (31 March 2010: £33.6 million) including £11.6 million of HCA grant held for future expenditure
- Total borrowings at 30 September 2010 were £75.6 million (31 March 2010: £70.8 million), with gearing remaining at historically low levels
- The placing which raised £7.5 million in February 2010 has enabled land acquisition, adding to the development pipeline for future years
Andrew Wiseman, Chief Executive of Telford Homes, commented: "As a result of the cautious approach to land acquisition that the Board adopted, we have successfully weathered the downturn, and the Group's diversified business model has allowed us to continue to build affordable housing and limit our exposure to the market. As expected, profits are reduced as the development pipeline was scaled back in response to market conditions; however the placing earlier this year has already enabled the Group to recommence investment in land, and this positions us well for future growth.
"I am very pleased to announce the appointment of Jon Di-Stefano as Chief Executive of Telford Homes with effect from July 2011, as I move to the role of Executive Chairman."
|Telford Homes Plc|
|Andrew Wiseman, Chief Executive||Tel: +44 (0) 1992 809 800|
|Jon Di-Stefano, Financial Director|
|Graham Shore / Pascal Keane||Tel: +44 (0) 20 7468 7910|
|Henry Harrison-Topham / Joanne Shears||Tel: +44 (0) 20 7398 7709|
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.