LONDON (Alliance News) - London-focused property developer Telford Homes PLC said on Wednesday it is expecting a record level of profit and revenue for its recently ended financial year.
Pretax profit for the year to the end of March is set to be up by more than 30%, slightly ahead of market expectations, with a three percentage point improvement in gross and operating margins.
For financial 2017, pretax profit was GBP34.1 million, on revenue of GBP291.9 million.
The anticipated strong performance is due to a combination of a robust market for London homes, caused by a constrained supply plus Telford's broad mix of sales in build-to-rent, individual investors, owner-occupiers and housing associations.
On an operational level, over 2,900 homes are currently under construction, and Telford currently has a total development pipeline of over 4,000 homes with an average price of GBP539,000, up from GBP527,000 a year before.
Telford's strategy from this point forward is to expand its build-to-rent output for supporting further growth, through exploring continuing partnerships to increase supply into the sector.
"Telford Homes continues to perform well and I expect to once again report record revenue and profit for the year to March 31, 2018. As we increase the scale of the business, our growth is underpinned by the lack of supply of new homes in London and demand for our product at more affordable price points remains strong. Build to rent is the most exciting part of our business in the near term and I believe our increased focus on this sector will drive the next phase of our growth and bring even greater success," said Chief Executive Jon Di-Stefano.
Telford Homes will publish its full-year results on May 30.
Shares in Telford Homes were up 1.5% at 429.65 pence on Wednesday.