30 May 2012
Telford Homes Plc (AIM:TEF), the London-focused residential property developer, today announces its preliminary results for the year ended 31 March 2012.
- Contracts exchanged for the sale of 460 open market properties, an increase of 25 per cent (2011: 368)
- Number of open market properties completed ahead of expectations at 314 (2011: 281)
- Increase in gross profit margin to 17.6 per cent (2011: 15.1 per cent) and operating margin to 6.2 per cent (2011: 5.2 per cent) with further improvements anticipated
- Profit before tax and exceptional items ahead of market expectations at £3.0 million (2011: £2.5 million)
- Substantial increase in profit expected for the year to 31 March 2013 with over 65 per cent of open market homes expected to complete already pre-sold
- Reaffirmed intention to pay a progressive dividend year-on-year and as such final dividend proposed of 1.5 pence making a total of 3.0 pence for the year (2011: 2.5 pence)
- Over 50 per cent of open market completions in the year to 31 March 2012 were sold to UK buyers, predominantly owner-occupiers
- Complemented by continuing overseas investor demand attracted by high rental yields and the fundamental strengths of the London market
- Agreed to purchase nearly £50 million of land since 1 April 2011 with a focus on locations where demand is stronger and less reliant on mortgage constrained buyers
Jon Di-Stefano, Chief Executive of Telford Homes, commented:
"Strong sales and higher margins ensured that profits in the year to 31 March 2012 were ahead of expectations. The fundamentals of the London housing market remain robust and our forward sales position includes over 65 per cent of the open market homes expected to complete in the year to 31 March 2013. The Board has previously stated that it expects a substantial increase in profit before tax in the new financial year and this remains the case.
"London, and East London in particular, will soon be firmly in the international spotlight with the longer term benefits of the Olympics already evident in terms of transport infrastructure and new facilities. The Board is looking forward to another year of improving margins, increased profit levels and a major sporting event on the doorstep."
For further information:
|Telford Homes Plc|
|Jon Di-Stefano, Chief Executive||Tel: +44 (0) 1992 809 800|
|Katie Rogers, Financial Director|
|Pascal Keane / Ed Mansfield||Tel: +44 (0) 020 7408 4090|
|Henry Harrison-Topham / Quincy Allan||Tel: +44 (0) 20 7398 7710|