14 July 2016
Telford Homes Plc (AIM:TEF), the London focused residential property developer, will hold its Annual General Meeting ("AGM") at 12.30 p.m. today at Telford House, Queensgate, Britannia Road, Waltham Cross, Hertfordshire EN8 7TF. At the AGM the Chief Executive of Telford Homes, Jon Di-Stefano, will make the following statement:
"In recent months Telford Homes has continued to build a substantial forward sold position, including £130 million from two Private Rented Sector (PRS) contracts, and successfully raised £50 million of new equity. As a result the Group could not be in a stronger financial position to manage the impact of market uncertainty following the outcome of the EU referendum.
Total forward sales now exceed £640 million and, as reported on 1 June 2016 in the Final Results, the Group has already secured over 50 per cent of the cumulative revenue expected in the three financial years up to 31 March 2019. This forward sold position has been boosted by the PRS sales of The Pavilions, N1, sold to a subsidiary of L&Q in February 2016 and Carmen Street, E14, sold to M&G Real Estate in May 2016. As a result of these sales the £50 million placing funds raised in 2015 are largely uncommitted and in addition the Group has significant headroom in its secured £180 million revolving credit facility extending into 2019.
The EU referendum has created significant short-term uncertainty and it is too early to predict how long that will last. Due to the forward sold position the Group has no major sales launches planned until the autumn and therefore the Board will monitor other market activity as a barometer of transaction levels and pricing. In addition, the Group will continue to consider opportunities for further PRS sales, both on existing sites and potential land acquisitions, assuming the financial dynamics of those transactions remain appropriate.
Following the outcome of the referendum, the Group still firmly believes in the longer term merits of building homes in London. There remains a chronic shortage of supply and that will not change as a result of leaving the EU. The Board also believes that London will not lose its attraction both as an international centre of finance or as a place where people want to live and work. Telford Homes has a strong development pipeline and is in a robust financial position with cash resources available for future investment. As a result, the Group will be able to take advantage of any opportunities created by current conditions balancing short term caution with continuing to plan for the longer term growth of the business.
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|
|Dru Danford / Patrick Castle||Tel: +44 (0) 20 7408 4090|
|Peel Hunt LLP - Joint Broker|
|Charles Batten / Capel Irwin||Tel: +44 (0) 20 7418 8900|
|Henry Harrison-Topham / Vicky Hayns||Tel: +44 (0) 20 7466 5000|