Telford Homes announces strong results as it sets its sights on the private rented sector

 
Helen Cahill
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Telford Homes is working on a project in Bow

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.

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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."

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