29 May 2013
Telford Homes Plc (AIM:TEF), the London-focused residential property developer, today announces its preliminary results for the year ended 31 March 2013.
- Exceptional demand with contracts exchanged for the sale of 803 open market properties in the year, a 75 per cent increase (2012: 460)
- Pre-sold position at 99 per cent of expected open market completions for the year to March 2014 and over 50 per cent for each of the following two years
- All sales to date have been achieved without any assistance from government backed mortgage schemes including 'NewBuy' and 'Help to Buy'
- Significant improvement in gross margin before interest, increased by 6.7 percentage points to 24.3 per cent (2012: 17.6 per cent)
- Operating margin before interest up to 9.7 per cent (2012: 6.2 per cent) tempered only by accelerated selling expenses as a result of sales success
- Profit before tax trebled to £9.0 million (2012: £3.0 million)
- Total dividend of 4.8 pence (2012: 3.0 pence)
- Development pipeline increased to 2,260 properties expected to deliver revenue in excess of £650 million (2012: 1,969 properties)
- Bank facility recently increased to £120 million and extended to September 2016
- Capacity to acquire more land in inner London and Group is now a member of the GLA's London Development Panel
- Board expects another substantial increase in pre-tax profits for the year to 31 March 2014
Commenting on the Preliminary Results, Jon Di-Stefano, Chief Executive of Telford Homes, said: "Telford Homes has trebled profit before tax for the year to 31 March 2013 and experienced exceptional levels of demand in recent months. The Group has already sold 99 per cent of the open market properties expected to be completed in the year to 31 March 2014 and more than 50 per cent for each of the following two years.
"The business is in an excellent position with increasing margins, a significant development pipeline, enhanced financial strength and an unprecedented level of pre-sales all underpinning the Board's expectations of substantial profit growth in the next three years."
For Further information:
|Telford Homes Plc|
|Jon Di-Stefano, Chief Executive||Tel: +44 (0) 1992 809 800|
|Katie Rogers, Financial Director|
|Pascal Keane / Patrick Castle||Tel: +44 (0) 020 7408 4090|
|Henry Harrison-Topham / Quincy Allan||Tel: +44 (0) 20 7398 7710|