East London housebuilder says it will diversify to other parts of London

Telford Homes Black Prince Road

Profit forecasts for housebuilder Telford Homes have been increased following the publication of end of year results showing £3m profit for the year ended March 2012.

Telford’s broker Shore Capital upgraded 2013 profit forecasts to £8m from £7.5m, and said that the company will earn £10m in 2014.

Revenues at Telford increased by 2% from £121.1m in 2011 to £123.4m in 2012. The firm saw the number of open market properties completed increase to 314 from 281 in 2011.

Reporting results today, chief executive John di Stefano said the firm had achieved a “successful year” with 65% of the open market homes for next year already sold. Stefano said the firm was poised for much higher growth in its more profitable homes for private sale, but will downsize its affordable housing business.

The firm sold 540 affordable homes this year, but Shore Capital predicts it will sell around 200 a year by 2014.

Di Stefano said the firm had decided to stop buying new land in outer East London Boroughs, and would focus instead on the area around Docklands and Canary Wharf. The firm will also look for the first time at buying land further west in London, and has made its first purchases in Camden and Lambeth.

Di Stefano said: “It’s a long long time away before there’s any chance the main focus of the business moves away from East London. It’s the main focus of the business and it’s where the opportunity for supply remains.”