LONDON (Alliance News) - Telford Homes PLC said on Wednesday it delivered another of record revenue total in its recently ended financial year, as well as profit exceeding market expectations.
Pretax profit for the year to the end of March was GBP46.0 million, up 35% from a GBP34.1 million the year before, reflected in a rise in its adjusted gross margin to 26.5% from 22.3%. Teleford credited this to the mix of developments completed in the period and cost efficiencies realised in the latter part of the year.
Revenue grew to GBP316.2 million from GBP291.9 million, through a greater number of open-market residential completions in the year, more than offsetting the effect of timing on the entering of new contracts.
Open-market residential revenue rose to GBP225.1 million from GBP153.5 million the prior year, as completions increased to 476 from 289. The average price of these slipped to GBP473,000 from GBP531,000, however, the lower price resulting from the mix of developments in terms of product and location, Telford said.
Contract revenue dropped to GBP86.8 million from GBP126.6 million.
Telford Homes declared a final dividend of 9.0 pence per share, giving a total payout of 17.0 pence, up from 15.7p the year before.
The group said it is well-placed to exceed GBP50.0 million in pretax profit for its current financial year, noting its continued success in the build to rent sector.
"Telford Homes continues to perform well and I am delighted to report such a strong set of results which again have produced record levels of revenue and profit. As we increase the scale of the business, our growth is underpinned by the under supply of new homes in London and robust demand at more affordable price points, particularly for rental housing," said Chief Executive Jon Di-Stefano.
"Our substantial development pipeline and increasing expertise in the burgeoning build to rent sector provide us with confidence for the future. I believe our increased focus on build to rent will drive the next phase of our growth and allow us to consistently deliver total pre-tax profits in excess of GBP50 million," Di-Stefano added.
Shares in Telford Homes were down 2.0% at 449.22 pence on Wednesday.
