East London housebuilder makes acquisition for £6.3m to improve cash flow

East London housebuilder Telford Homes has bought contractor Clifford Contracting from Puma Venture Capital for £6.3m.

The deal will be funded by £5.7m of loan notes and the remainder will be in shares.

In a statement, the company said the addition of a contracting business would give it extra cash flow to fund failed completions and unsold properties at more attractive terms than via bank financing.

Clifford Contracting had an estimated operating profit of £35,000 in the year to 30 April 2009 and cash of £6.3m.