Telford Homes PLC Trading Update & new £70m banking facility (5350E)

TIDMTEF

RNS Number : 5350E

Telford Homes PLC

08 April 2011

 
 Press Release   8 April 2011

Telford Homes Plc

("Telford Homes" or the "Group")

Trading update

New GBP70 million banking facility

Telford Homes Plc (AIM:TEF), the residential property developer in East London noted for regeneration projects within public sector partnerships, is pleased to give the following trading update ahead of its preliminary results for the year ended 31 March 2011 which will be released on 1 June 2011.

Highlights

 
 --   Completed GBP70 million banking facility with RBS, HSBC 
       and Santander on 31 March 2011 
 --   Steady sales environment continues in East London 
 --   Reduced activity during the recession has, as expected, 
       led to a fall in the number of open market completions 
       achieved in the year to 281 (2010: 389) 
 --   Full year figures anticipated to be in line with market 
       expectations 
 --   Four developments with Homes and Communities Agency 
       grant now completed with final grant tranches received

New GBP70 million bank facility

The Board is delighted to announce that the Group completed a new GBP70 million banking facility with The Royal Bank of Scotland, HSBC and Santander on 31 March 2011. This facility lasts for three and a half years until 30 September 2014. The initial drawdown of just over GBP30 million has repaid loans held with both RBS and Allied Irish Bank and leaves headroom of GBP40 million for future site acquisitions and development costs.

Securing finance is extremely difficult given the current banking climate and many developers are struggling to access funds. It is a significant indication of the strength of Telford Homes that, after a year of extensive investigation of every aspect of the business and its financial position, these three major banks are prepared to support the Group to this extent.

Current trading

The housing market in East London remains steady and the Group is pleased to report that new sales have been achieved in line with the forecast for the year. Due to the Group's reduced activity during the recession the number of open market completions in the year has, as expected, fallen to 281 (2010: 389). The Board anticipates that the results for the year to 31 March 2011 will be in line with market expectations.

In addition the Group has completed the first four developments under its grant agreement with the Homes and Communities Agency ("HCA") and all of the final grant tranches on those developments, totaling GBP8.2 million, have now been received.

Andrew Wiseman, CEO of Telford Homes, commented: "The Board is delighted to have signed the new GBP70 million banking facility with RBS, HSBC and Santander. This is a great achievement in the current banking climate and gives us significant headroom to add to the development pipeline for future years. We are also pleased to observe that the market in East London has remained steady, and as a result the Group has performed in line with expectations during the year."

- Ends -

For further information:

 
 Telford Homes Plc 
 Andrew Wiseman, Chief Executive        Tel: +44 (0) 1992 809 
                                                          800 
 Jon Di-Stefano, Financial Director   www.telfordhomes.plc.uk 
 
 
 Shore Capital 
 Pascal Keane    Tel: +44 (0) 20 7408 
                                 4090

Media enquiries:

 
 Abchurch 
 Henry Harrison-Topham / Joanne Shears     Tel: +44 (0) 20 7398 
                                                           7709 
 joanne.shears@abchurch-group.com        www.abchurch-group.com

This information is provided by RNS

The company news service from the London Stock Exchange

END

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