Trading update (3644Q)
October 19 2011 - 2:00AM
UK Regulatory
TIDMTEF
RNS Number : 3644Q
Telford Homes PLC
19 October 2011
Press Release 19 October 2011
Telford Homes Plc
("Telford Homes" or the "Group")
Trading update
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 interim results for the six months ended 30 September 2011
which will be released on 1 December 2011.
Highlights
-- Strong sales achieved in the first six months of the
financial year with a 30 per cent increase in the number
of contracts exchanged
-- Demand from both overseas and UK buyers
-- Full year results to 31 March 2012 anticipated to be
in line with market expectations with a significant
increase expected in the year to 31 March 2013
-- Healthy balance sheet with cash and bank funding in
place to make further land acquisitions and add to the
development pipeline
Current trading
The Group has achieved strong sales in the first six months of
the financial year exchanging contracts on 288 open market
properties, a 30 per cent increase compared to the same period last
year. Off-plan investor demand, particularly from overseas, across
a number of developments has been a key component in this success
coupled with a steady rate of sales to owner-occupiers.
The launch of Avant-garde, E1 was the most significant
contributor to sales in the first half of the year with an
excellent 186 sales achieved in total, 124 of which were secured
across three overseas marketing events. This was complemented by a
further 62 sales to UK buyers, many of whom are investors
encouraged by the London rental market.
The Board confirms that profit before tax for the financial year
to 31 March 2012 is anticipated to be in line with market
expectations and that it expects a significant increase to be
achieved in the year to 31 March 2013 given pre-sales already
secured.
Land buying
The Group has been pursuing new land opportunities since
securing a long term bank facility in March 2011 and has purchased
or agreed to purchase a number of sites over the last six months.
The focus of the Group's land buying remains predominantly in East
London but is increasingly concentrated on the areas in and around
the City, Canary Wharf and Stratford where demand for our typical
product is stronger and less reliant on mortgage-constrained first
time buyers. In addition the Board has widened its focus into
adjoining areas of North and Central London where higher priced
properties are in demand both from overseas investors and UK
buyers.
Outlook
The Group has continued to achieve a healthy rate of sales
despite ongoing restricted mortgage availability and some
uncertainty in the wider economy. Our focus on London is
underpinned by its international status, a resilient property
market and an ongoing shortage of new homes and as a result the
Board remains confident of the future growth prospects for Telford
Homes.
- Ends -
For further information:
Telford Homes Plc
Jon Di-Stefano, Chief Executive Tel: +44 (0) 1992 809
800
Katie Rogers, 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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