Interim results for the six months ended 30 September 2016

30 November 2016

Telford Homes Plc (AIM:TEF), the residential property developer focused on non-prime London, today announces its interim results for the six months ended 30 September 2016 (“H1 2017”).

Highlights

• Strong forward sold position exceeding £700 million of revenue to be recognised from the year to 31 March 2017 onwards (1 April 2016: £579 million)
• Long term imbalance between the supply of homes and demand for somewhere to live in non-prime areas of London
• Successful off-plan launch of City North, Finsbury Park in November 2016 selling 72 homes over three weekends for a combined value in excess of £43 million
• Increased opportunities in the ‘build to rent’ sector earning higher capital returns
• No changes to the Group’s growth targets, profit forecasts or anticipated dividend payments as a result of the EU referendum
• With revenues weighted to the second half the Board is confident of meeting market expectations for pre-tax profits in the year to 31 March 2017
• Increased interim dividend to 7.2 pence (H1 2016: 6.5 pence) to reflect this confidence
• Substantial development pipeline of over £1.4 billion of future revenue
• Cautious approach to land investment in the last few months but a significant joint venture site in East London now being progressed and many more opportunities being appraised
• Gearing still historically low at 17.3 per cent (31 March 2016: 9.2 per cent)
• Well positioned to deliver on targets to exceed £50 million of annual pre-tax profit by 31 March 2019 and double the size of the business over the next five years

Jon Di-Stefano, Chief Executive of Telford Homes, commented: “Telford Homes is in a very strong position with over £700 million of forward sales secured and a substantial development pipeline. The recent launch of City North in Finsbury Park exceeded our expectations achieving over 70 sales at higher than anticipated prices and proving that the right product in the right location remains attractive to buyers.” 

“The Group is extending its involvement in the build to rent sector and expects an increasing number of opportunities to secure revenues and earn higher capital returns through forward funding arrangements with institutional investors. Overall we are well positioned to deliver on our targets of achieving more than £50 million of annual pre-tax profit by 31 March 2019 and doubling the size of the business over the next five years.” 

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