Telford Homes interim profit surges on London demand

London-focused property developer Telford Homes said its interim pre-tax profit doubled on the back of strong demand in the London property market.

In the six months to the end of September, the group said its pre-tax profit more than doubled to £21m, while revenue surged from £65.1m to £139.6m.

The company’s gross profit margin was 27.6%, comfortably ahead of the 24% it targeted.

Telford said its policy of focusing on non-prime locations in London was proving beneficial, as demand had not been affected by changes to the stamp duty regime. The group said it has a forward sales book of £700m and anticipates its investment in the private rent sector will boost future sales.

"A fundamental lack of supply of homes in London is contributing to strong demand for our properties in non-prime locations,” said group chief executive Jon Di-Stefano.

“As a result we have a sector leading forward sold position which gives the board exceptional visibility over future profits and cash flows.”

The London-listed group said it will hike its interim dividend 27.4% year-on-year to 6.5p.

Telford shares were up 1.63% to 388.74p at 0926 GMT on Wednesday.