2nd Dec 2015 08:43
LONDON (Alliance News) - Telford Homes PLC on Wednesday said its pretax profit doubled in the first half, with margins in excess of its targets and its interim dividend hiked as the residential property developer benefits from continued strong demand in the London market.
The company, which focuses on non-prime locations in the capital, said its pretax profit for the half to the end of September was GBP21.0 million, up from GBP9.4 million, as revenue surged to GBP139.6 million from GBP65.1 million.
The group said it is benefiting from its focus on non-prime locations in London, where demand has not been sapped by changes to the stamp duty regime in the UK, which has hit activity at the top end of the market. The group has a forward sales book of GBP700.0 million, and expects its investment in the private rented sector to contribute to sales in the future too.
In addition, the company said its gross profit margin for the first half was 27.6%, well ahead of its target margin of 24.0%.
Telford said it would pay an interim dividend of 6.5 pence per share, up from 5.1p.
"A fundamental lack of supply of homes in London is contributing to strong demand for our properties in non-prime locations. As a result we have a sector leading forward sold position which gives the board exceptional visibility over future profits and cash flows," said Jon Di-Stefano, Telford's chief executive.
Telford shares were up 1.5% to 388.30 pence early Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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