Telford Homes to beat full year forecasts

Shares of London focused property developer Telford Homes rallied after it said full year pre-tax profit is expected to be ahead of markets forecasts as strong demand continues.

Shares of London focused property developer Telford Homes rallied after it said full year pre-tax profit is expected to be ahead of markets forecasts as strong demand continues.

Telford Homes said it has experienced exceptional levels of demand in recent months and is encouraged by its development pipeline.

"The board is confident that substantial growth in profit levels can be achieved over the next three years from the existing pipeline and has a long term strategy to further this growth, in London, over the next five to ten years," it said in a company update

Chief Executive Jon Di-Stefano said: "Exceptional levels of demand from buyers both in the UK and overseas has put Telford Homes in an extremely strong position. Profit before tax will be ahead of market forecasts for the year to March 31st 2013 and the group is already 94% pre-sold for the year to March 31st 2014."

"We are increasing and extending our corporate loan facility which will enable the group to add to the development pipeline and target further substantial growth over the coming years."

Telford said it had seen significant improvement in both gross and operating margins. Selling prices are being achieved ahead of expectations and build costs are under strong control.

The group expects to report an increase in gross margin of over five percentage points.

Net debt at March 31st 2013 was less than £35m compared to £54.6m a year earlier.

CJ

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
China owns a lot more gold than it’s letting on – and here’s why
Gold

China owns a lot more gold than it’s letting on – and here’s why

In a world awash with money-printing, a currency backed by gold would have great credibility. And China – with designs on the yuan becoming the world’…
21 Apr 2021
Why investment advice could be about to get a lot cheaper
Investment strategy

Why investment advice could be about to get a lot cheaper

Vanguard, the world’s second-biggest asset manager, is launching its own cut-price financial advice service. It’s something the industry badly needs, …
20 Apr 2021