Telford Homes posts sizeable revenue growth

London-focused residential property developer Telford Homes posted full-year revenue of £245.6m in the year to 31 March on Friday, up from £173.5m.

Pre-tax profit for the year exceeded original market expectations and increased by 28% to £32.2m, up from £25.1m in 2015.

The AIM-traded firm proposed final dividend substantially increased to 7.7p bringing the total dividend for the year to 14.2p (2015: 11.1p)

Telford reported strong demand during the period with 548 new open market sales added in the year and total forward sales at 1 April amounting to £579m of future revenue (2015: £503m)

“It has been another exceptional year for Telford Homes resulting in record revenue and profits,” said chief executive Jon Di-Stefano.

“The group has been successful in forward selling homes through traditional channels and has added to this by contracting its first significant sales in the private rented sector.”

Di-Stefano said the 2015 equity placing for £50m, together with substantial headroom in the group's £180m revolving credit facility, means Telford Homes is in a strong position to continue its growth.

“There have been some recent and justifiable concerns over prime residential properties in London but this is a different market to that served by Telford Homes,” he explained.

“The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand.”

Di-Stefano said there is an ongoing housing crisis and a clear imbalance between the supply of homes and the needs of a growing population.

“Telford Homes is building homes for Londoners in a market where demand continues to significantly outstrip supply, and the board believes that this undeniable structural factor will underpin the group's future growth.”