London focused residential property developer Telford Homes saw a significant rise in first half profit while sales momentum continued as demand for its London property remains strong.
In an update ahead of its interim results next month, the east London house builder said it is now 85 per cent sold in terms of the open market homes expected to legally complete in the year to 31 March 2013 and over 50 per cent sold for the year to 31 March 2014.
It exchanged contracts on 218 open market properties in the last six months.
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"The strength of London as a global city, its international appeal, transport connections and a shortage of new homes make the group's area of operation particularly attractive, especially on the back of a very successful Olympic Games," the group said in a company statement.
Telford saw an increase in profits expected for the period with a total of 252 legal completions achieved compared to 125 in the same half a year earlier while margins improved significantly.
Chief Executive Jon Di-Stefano said the significant profit growth for the first six months of the year underpins its confidence in achieving market expectations for the full year to March 31st 2013.
"With margins much improved, we already anticipate improving on the current market forecast for the year to 31 March 2014."
"Our development pipeline can deliver five years of gross profit based on the current year and we are selling well to both investors and owner-occupiers. The market fundamentals in London remain strong and the board is looking forward to continuing the growth of the business over the next few years."
Telford said it has extended its debt facility of £90m, which it said, would provide sufficient headroom to develop all existing schemes and acquire new sites.
CJ
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