House builder in profit surge
House builder Telford Homes has reported a better than expected profit hike on the back of increased sales and completions.
The builder, which is an investment partner under the Homes and Communities Agency’s £1.8 billion affordable homes programme, said its positive results were thanks to the continuing strength of the London housing market.
Telford reported re-tax profit of £3 million in the 2011/12 financial year, up from £2.5 million in 2010/11. It also reported that it had completed 314 sales and exchanged contracts on 460 homes, 25 per cent up from last year.
Gross profit margin was also up, from 15.1 per cent last year to 17.6 per cent this year, with the group reporting that it expected further improvement to come.
‘Strong sales and higher margins ensured that profits in the year to 31 March 2012 were ahead of expectations,’ said Jon Di-Stefano, chief executive of Telford Homes. ‘The fundamentals of the London housing market remain robust and our forward sales position includes over 65 per cent of the open market homes expected to complete in the year to 31 March 2013. The board has previously stated that it expects a substantial increase in profit before tax in the new financial year and this remains the case.
‘London, and East London in particular, will soon be firmly in the international spotlight with the longer term benefits of the Olympics already evident in terms of transport infrastructure and new facilities. The board is looking forward to another year of improving margins, increased profit levels and a major sporting event on the doorstep.’