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

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021