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Shares in London focussed property developer Telford Homes (LON:TEF) edged up by 3.2% to 309p (as at 11:00 GMT) after the firm announced a 31% rise in revenues for the six months to September 2018. Total sales of £129.6 million drove pre-tax profits up by 16% to £10.1million, with Telford increasing the interim dividend by 6.3% to 8.5p.
The outlook seems positive but challenging for Telford, with the company having a substantial development pipeline of £1.65 billion of future revenue comprising just over 5,000 homes. A strategic shift towards the “build to rent” market over the last three years is panning out well and this sector is expected to form a significant part of the London market going forward
Telford admitted that there is still work to be done in order to achieve the previously set target of exceeding £50 million of total profit before tax for the current financial year. Regardless, the company remains “extremely confident” in its long-term strategy of delivering an increased number of much needed homes in non-prime locations of the chronically undersupplied London market.