East London housebuilder forecasts significant increase in full-year profit based on sales already secured
East London property developer Telford Homes has reported a 30% increase in the contracts exchanged during the first six months of the year.
In a trading update the group also said it had acquired 288 open market properties between April and September 2011.
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Telford, a residential developer noted for its regeneration projects within public sector partnerships, said it had achieved a steady rate of sales to owner-occupiers, and that off-plan investor demand, especially from overseas, had driven up sales.
The company’s board confirmed that it expects profit before tax for the financial year to 31 March 2012 to be in line with market expectations, and that it anticipates a significant increase in the year to 31 March 2013, based on pre-sales already secured.
It points to a healthy balance sheet with cash and bank funding in place for further land acquisitions, which will add to the development pipeline.
Telford has concentrated on growing its land bank since securing a long term bank facility in March 2011. East London remains its primary sphere of operations, but it has increased its focus on areas in and around the City, Canary Wharf and Stratford where demand is less reliant on mortgage-constrained first time buyers.
The board has also turned its gaze towards adjoining areas of North and Central London, where higher priced properties are in demand both from foreign investors and UK buyers.
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