19 October 2011
Telford Homes Plc (AIM:TEF), the residential property 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 for the six months ended 30 September 2011 which will be released on 1 December 2011.
- Strong sales achieved in the first six months of the financial year with a 30 per cent increase in the number of contracts exchanged
- Demand from both overseas and UK buyers
- Full year results to 31 March 2012 anticipated to be in line with market expectations with a significant increase expected in the year to 31 March 2013
- Healthy balance sheet with cash and bank funding in place to make further land acquisitions and add to the development pipeline
The Group has achieved strong sales in the first six months of the financial year exchanging contracts on 288 open market properties, a 30 per cent increase compared to the same period last year. Off-plan investor demand, particularly from overseas, across a number of developments has been a key component in this success coupled with a steady rate of sales to owner-occupiers.
The launch of Avant-garde, E1 was the most significant contributor to sales in the first half of the year with an excellent 186 sales achieved in total, 124 of which were secured across three overseas marketing events. This was complemented by a further 62 sales to UK buyers, many of whom are investors encouraged by the London rental market.
The Board confirms that profit before tax for the financial year to 31 March 2012 is anticipated to be in line with market expectations and that it expects a significant increase to be achieved in the year to 31 March 2013 given pre-sales already secured.
The Group has been pursuing new land opportunities since securing a long term bank facility in March 2011 and has purchased or agreed to purchase a number of sites over the last six months. The focus of the Group’s land buying remains predominantly in East London but is increasingly concentrated on the areas in and around the City, Canary Wharf and Stratford where demand for our typical product is stronger and less reliant on mortgage-constrained first time buyers. In addition the Board has widened its focus into adjoining areas of North and Central London where higher priced properties are in demand both from overseas investors and UK buyers.
The Group has continued to achieve a healthy rate of sales despite ongoing restricted mortgage availability and some uncertainty in the wider economy. Our focus on London is underpinned by its international status, a resilient property market and an ongoing shortage of new homes and as a result the Board remains confident of the future growth prospects for Telford Homes.
|Telford Homes Plc|
|Jon Di-Stefano, Chief Executive||Tel: +44 (0) 1992 809 800|
|Katie Rogers, Financial Director|
|Pascal Keane||Tel: +44 (0) 020 7408 4090|
|Henry Harrison-Topham / Joanne Shears||Tel: +44 (0) 20 7398 7709|