Telford Homes quadruples profit

East London homebuilder Telford Homes said half year profit quadrupled after strong demand for inner London locations and it expects profit to grow significantly in 2013.

East London homebuilder Telford Homes said half year profit quadrupled after strong demand for inner London locations and it expects profit to grow significantly in 2013.

Pre-tax profit surged to £6.5m in the six months ended September 30th 2012 from £1.5m in the equivalent period a year earlier. Revenue increased to £78.3m from £58.6m. The group also reported a five-percentage point increase in its operating margin.

The volume of open market completions mostly drove the increase in revenue. A total of 252 open market homes were legally completed in the six months to September 2012 compared to 125 homes during the same period last year.

"We are achieving a strong rate of sales to both investors and owner-occupiers with the group now over 90% sold for this financial year and already over 60 per cent sold for the following year," Chief Executive Jon Di-Stefano explained.

"Our development pipeline represents five years of gross profit based on the current year and, with the London market remaining buoyant, the board expects Telford Homes to continue to grow over the coming years."

Telford said it has reduced net debt to £31.7m from £54.6m at the end of March and gearing to 45.7% from 82.4% six months earlier. Both are expected to increase again over the next 12 months as sites are bought and developed.

Looking ahead Telford said it is confident that profits for the year to March 31st 2013 will be in line with market expectations and anticipates significant growth in the following year.

The group's corporate loan facility increased to £90m during the period.

CJ

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

House prices could fall 30%. Should investors be worried about a repeat of 2008?
Investments

House prices could fall 30%. Should investors be worried about a repeat of 2008?

Some analysts are predicting that house prices could fall as much as 30%, which, when compared to the fact that prices have jumped 28% since April 201…
24 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023