Telford Homes' shares rise on forecast for record FY revenue and profit

Shares in Telford Homes are up after the residential property developer forecast record revenues and profits for the year to 31 March.

It said pre-tax profit was seen slightly ahead of current market expectations. The company was also on track to exceed £40m of pre-tax profit for the year to 31 March 2018, and £50m for the year ending on 31 March 2019.

Telford Homes said its forward sales at 1 April 2017 remained substantial at around £550m.

Its development pipeline exceeded £1.3bn and represented more than four-times revenue expected in the year to 31 March 2017. The build-to-rent pipeline now represented 483 homes with a combined contract value of £232m.

The company said more than 80% of anticipated gross profit for the year to 31 March 2018 had already been secured and over 60% for March 2019.

"The lack of supply of new homes compared to demand in non-prime London continues to present an opportunity for the board to further their plans to grow output over the coming years," the company said in a statement.

At 12:47 GMT, shares in AIM-traded Telford Homes were up 1.81% to 366.25p each.