Telford Homes trebles profit as demand soars
London-focused residential property developer Telford Homes said pre-tax profit increased three-fold and it expects another substantial increase in profit in the financial year ahead.
London-focused residential property developer Telford Homes said pre-tax profit increased three-fold and it expects another substantial increase in profit in the financial year ahead.
Pre-tax profit rose to £9.0m for the year ended March 31 2013 from £3.0m the same period a year earlier. Revenue climbed to £142.4m from £124.4m before.
Operating profit increased to £10.6m from £4.8m before. Basic earnings per share jumped to 14.3p from 4.7p. Operating margin before interest rose to 9.7% from 6.2% in 2012.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Telford said it experienced exceptional demand with contracts exchanged for the sale of 803 open market properties in the year, a 75% on 2012.
Chief Executive Jon Di-Stefano said Telford experienced exceptional levels of demand in recent months and has already sold 99% of the open market properties for completion in the year to March 31st 2014 and more than 50% for each of the following two years.
"The business is in an excellent position with increasing margins, a significant development pipeline, enhanced financial strength and an unprecedented level of pre-sales all underpinning the Board's expectations of substantial profit growth in the next three years."
The total dividend has been boosted to 4.8p from 3.0p in 2012.
Shares of Telford rose 1.50p to 270p at 08:30 in London.
CJ
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
HSBC returns to cost-cutting plan
HSBC is set to revamp its commercial banking division – but will it come at a cost?
By Dr Matthew Partridge Published
-
UK ranked as ninth-worst country for property investment
High taxes and rising transaction costs have put pressure on the UK's buy-to-let sector. Is the UK still profitable?
By Chris Newlands Published