London-focused housebuilder Telford Homes saw pre-tax profits more than double in the first half, as the supply of new homes in the capital fails to keep up with demand.
Chief executive Jon Di-Stefano said it owed its success to Telford's focus on non-prime, or more affordable, areas in the capital such as Stratford where demand for new homes remains strong.
It completed 282 sales in the period at schemes including Cityscape near Aldgate East and Parkside Quarter on the Isle of Dogs, up from 140 last year. This helped push group revenue to £139.6m in the six months to 30 September from £65.1m last time.
The group said the launch of two of its newest developments Manhattan Plaza in Poplar and Bermondsey Works had “exceeded expectations”, taking forward sales of more than £700m for the year to 31 March 2016 – more than four times the revenue reported last year.
Pre-tax profits have more than doubled in the first half as a result to £21m compared with £9.4m last time.
The company has been on an acquisition spree of late after buying regeneration business, United House, for £23m in September and exchanging contracts for a development site on Carmen Street in Poplar for over £20m last month. It also tapped investors for £50m via an equity placing in October to help fund its expansion.
“We will continue to invest the placing funds over the next few months, having already acquired a substantial site with planning permission for 206 homes, and the board is very confident in the prospects for Telford Homes over the next few years,” Di-Stefano said.