StockMarketWire.com - Telford Homes (TEF) said it achieved full-year revenue of £245.6 million up from £173.5 million.

Pre-tax profit for the year exceeded original market expectations and increased by 28% to £32.2 million, up from £25.1 million in 2015.

Highlights:

- Proposed final dividend substantially increased to 7.7p bringing the total dividend for the year to 14.2p (2015: 11.1p)

- Strong demand with 548 new open market sales added in the year and total forward sales at 1 April 2016 amounting to £579 million of future revenue (2015: £503 million)

- Already secured over 50% of cumulative revenue expected in the next three financial years up to 31 March 2019

- Significant move into institutional private rented sector transactions in the year bringing exceptional capital returns with the potential to be an increasing component of future sales

- Acquisition of the regeneration business of United House Developments in September 2015 added £500 million to the development pipeline

- Development pipeline in excess of £1.5 billion of future revenue, greater than six times the revenue reported in the year to 31 March 2016

- Robust financial position following £50 million equity placing announced in October 2015 along with £140 million of headroom in £180 million revolving credit facility

- Enhanced longer term growth expectations with pre-tax profit forecast to increase over the next three years and to exceed £50 million in the year to 31 March 2019

Chief executive Jon Di-Stefano said: "It has been another exceptional year for Telford Homes resulting in record revenue and profits.

"The group has been successful in forward selling homes through traditional channels and has added to this by contracting its first significant sales in the private rented sector.

"The 2015 equity placing for £50 million, together with substantial headroom in the group's £180 million revolving credit facility, means Telford Homes is in a strong position to continue its growth.

"There have been some recent and justifiable concerns over prime residential properties in London but this is a different market to that served by Telford Homes.

"The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand.

"There is an ongoing housing crisis and a clear imbalance between the supply of homes and the needs of a growing population.

"Telford Homes is building homes for Londoners in a market where demand continues to significantly outstrip supply, and the board believes that this undeniable structural factor will underpin the group's future growth."


At 8:24am: [LON:TEF] Telford Homes PLC share price was -57.62p at 305.38p



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