28 May 2014
Telford Homes Plc (AIM:TEF), the London-focused residential property developer, today announces its preliminary results for the year ended 31 March 2014.
- Buoyant London market with contracts exchanged for the sale of 515 open market properties in the year, further increasing the Group's pre-sold position
- 98 per cent of expected open market completions for the year to March 2015 forward sold, over 70 per cent for FY16 and over 25 per cent for FY17, enabling the Group to control risk and enhancing profit and cash flow visibility
- All sales secured without assistance from the 'Help to Buy' initiative or any other government backed mortgage scheme
- Operating in areas of London where demand exceeds supply and where people want to live and can afford to live
- Strong current trading with over £70 million of apartments sold at Stratford Central, E15 over the last four weeks
- Substantial increase in operating margin to 17.1 per cent (2013: 9.7 per cent)
- Profit before tax more than doubled to £19.2 million (2013: £9.0 million)
- Proposed final dividend of 5.1 pence bringing the total to 8.8 pence for the year (2013: 4.8 pence), an increase of 83 per cent
- £20 million equity raised in June 2013, along with over £45 million of deposits received from forward sales, driving investment in new opportunities
- Development pipeline anticipated to deliver future revenue of more than £875 million (2013: £627 million), a 40 per cent increase and over six times the revenue recognised in the year to 31 March 2014
- Net cash balance at 31 March 2014 and zero gearing (2013: 47.3 per cent)
- Board expects pre-tax profit to double again by 31 March 2018 with a cumulative total of more than £120 million anticipated over the next four financial years
Commenting on the Preliminary Results, Jon Di-Stefano, Chief Executive of Telford Homes, said: "I am delighted to be reporting another excellent year for Telford Homes resulting in an enhanced forward sold position, substantially improved margins and pre-tax profits more than doubling. Our development pipeline has increased to £875 million of future revenue, which is more than six times the revenue reported in the year to 31 March 2014.
"Our long term growth plans are underpinned by the demand for somewhere to live significantly exceeding the supply of new homes in the Group's non-prime inner London locations. We are operating in areas where people want to live and many can still afford to live with strong demand from both owner-occupiers and tenants. Our customers do not typically need high loan to value mortgages and we have not made any sales under 'Help to Buy'. The Board anticipates that cumulative pre-tax profit over the next four financial years will be in excess of £120 million, positioning Telford Homes as one of the most significant developers in London."
For Further information:
|Telford Homes Plc|
|Jon Di-Stefano, Chief Executive||Tel: +44 (0) 1992 809 800|
|Katie Rogers, Financial Director||www.telfordhomes.plc.uk|
|Pascal Keane / Patrick Castle||Tel: +44 (0) 020 7408 4090|
|Henry Harrison-Topham / Quincy Allan||Tel: +44 (0) 20 7398 7710|