East London focused residential developer Telford Homes said pre-tax profit in the year ended March 31 2012 is expected to be ahead of market expectations after strong sales in the second half.
The developer, which is focused on brownfield sites in the east end of London, said it remains positive in its outlook with profit levels expected to increase significantly in the new financial year underpinned by pre-sales already secured and by some of the new sites it acquired in the last 12 months.
It also saw an improvement in gross and operating profit margins compared to the prior year.
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The group said a total of 314 open market properties were completed in the year to 31 March 2012 compared to 281 in 2011.
Telford also expects a significant increase in profit expected for the year to 31 March 2013 given the current development pipeline and delivery of pre-sales already secured.
Visitor numbers and reservation rates increased by more than 50% in the first few months of 2012 compared to the same period last year and Telford expects a steady rate of sales to UK buyers to continue to be complemented by demand from overseas investment buyers.
Chief executive Jon Di-Stefano commented, "The London market has proved particularly resilient and, together with improved margins, our sales performance means profits for the year to 31 March 2012 are anticipated to be ahead of market expectations."
"The Board remains positive in its outlook with profit levels expected to increase significantly in the new financial year underpinned by pre-sales already secured and by some of the new sites we have acquired in the last 12 months."
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