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.

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