London residential property developer Telford Homes announced strong revenue growth in its final results for the year ending March 2016, and pre-tax profits at the company exceeded original market expectations.
The firm's revenue was up by 42 per cent year-on-year, jumping from £173.5m in 2015 to £245.6m this year.
Pre-tax profits were up by 28 per cent, to £32.2m, compared to £25.1m in 2015. Pre-tax profit is forecast to grow in the next three years and to exceed £50m in the year ending 31 March 2019.
The proposed final dividend increased to 7.7p, bringing the total dividend for the year to 14.2p, compared to 11.1p last year.
The company has moved into private rented sector transactions this year, and has been rewarded with excellent capital returns. Just yesterday, Telford Homes announced it is teaming up with M&G Real Estate to build a private rented development in Bow, east London.
Jon Di-Stefano, chief executive of Telford Homes, said: "There have been some recent and justifiable concerns over prime residential properties in London but this is a different market to that served by Telford Homes.
"The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand. There is an ongoing housing crisis and a clear imbalance between the supply of homes and the needs of a growing population. Telford Homes is building homes for Londoners in a market where demand continues to significantly outstrip supply."