Listed housebuilder raising cash through share place

Listed housebuilder Telford Homes is raising £20m through a share placing to ramp up its development programme.

Telford is issuing eight million new shares through the placing in order to raise cash to acquire and construct new development opportunities.

The London-focused housebuilder announced strong preliminary results for the year ended 31 March 2013 last month, with profit trebling to £9m from £3m the previous year.

Jon Di-Stefano, chief executive of Telford Homes, said:  “Following the announcement of the Group’s results for the year to 31 March 2013, I am delighted that our exceptional sales performance and the many opportunities for Telford Homes to grow in London have resulted in our proposed placing to raise £20 million being substantially oversubscribed. 

“I am also pleased that the proposed placing introduces a number of new shareholders.

“Together with our increased bank facility secured in April 2013 the equity raised will give the Group nearly £50 million to invest in new development opportunities, some of which have already been identified. 

“This investment will accelerate the growth of Telford Homes and underlines our belief in the long term future of the housing market in London.”