27 May 2015
Telford Homes Plc (AIM:TEF), the London focused residential property developer, today announces its preliminary results for the year ended 31 March 2015.
- Focused on relatively affordable locations in London where demand from tenants, investors and owner-occupiers exceeds the supply of new homes
- Strong performance at every sales launch with 661 open market properties sold in the year (2014: 515) and another 105 since 1 April 2015
- 95 per cent forward sold for the year to 31 March 2016
- Total forward sales now over £550 million (31 March 2014: £341 million), more than three times current annual revenue
- Development pipeline of £1.07 billion of future revenue, an increase of more than 70 per cent in two years
- Profit before tax ahead of market expectations at £25.1 million (2014: £19.2 million), a tenfold increase in four years
- Continued improvement in gross profit margin and operating margin before interest up to 17.5 per cent (2014: 17.1 per cent)
- Proposed final dividend of 6.0 pence making a total of 11.1 pence for the year (2014: 8.8 pence)
- New four year £180 million revolving credit facility providing greater working capital flexibility and a lower cost of capital
- Drawn debt at 31 March 2015 of £95 million leaving headroom in the facility of £85 million for future investment
- The outcome of the General Election has provided certainty and stability to the political environment and the housing market
- Board expects significant growth in output and profits over the next few years and remains very confident in the long term prospects for Telford Homes
Commenting on the Preliminary Results, Jon Di-Stefano, Chief Executive of Telford Homes, said: "I am delighted to report that Telford Homes has experienced another excellent year of trading resulting in pre-tax profits of over £25 million, a tenfold increase in just four years. We continue to be successful at every sales launch and the total value of all forward sales is now over £550 million, more than three times current annual revenue.
"The outcome of the 2015 General Election has provided certainty and stability to the political environment and to the housing market. The Group is focused on relatively affordable locations in London that are experiencing high demand from tenants, investors and owner-occupiers due to a chronic shortage in the supply of new homes. The Board expects significant growth in output and profits over the next few years and remains very confident in the long term prospects for Telford Homes."
For Further information:
|Telford Homes Plc|
Jon Di-Stefano, Chief Executive
Kate Rogers, Financial Director
Tel: +44 (0) 1992 809 800
|Shore Capital - Nomad and Joint Broker|
|Pascal Keane / Patrick Castle||Tel: +44 (0) 20 7408 4090|
|Peel Hunt LLP - Joint Broker|
|Alex Vaughan / Hugh Preston||Tel: +44 (0) 20 7418 8900|
|Quincy Allan / Henry Harrison-Topham||Tel: +44 (0) 20 7398 7710|
Copies of this announcement are available from the Group at Telford House, Queensgate, Britannia Road, Waltham Cross, Hertfordshire EN8 7TF and on our website www.telfordhomes.london.