House builders experience profit jump
Hertfordshire based house builder Telford Homes Plc are expecting to post a profit jump, as the firm said sales were strong in the second half of the year.
The Group expect profits ahead of market expectations for the year to March 31 2014 due to pre-sales secured at higher than expected margins.
Telford said restricted mortgage finance and lack of supply of new homes had driven strong rental yields, and that it was a misconception that overseas investors were leaving properties empty, and in fact they were stimulating the market in London.
Jon Di-Stefano, Chief Executive of Telford Homes, commented: “We expect to report significant profit growth for the first six months of the year which will underpin our confidence in achieving market expectations for the full year to 31 March 2013.
“The Group is 85 per cent sold for the current year and already 50 per cent sold for the following year and, with margins much improved, we already anticipate improving on the current market forecast for the year to 31 March 2014.
“Our development pipeline can deliver five years of gross profit based on the current year and we are selling well to both investors and owner-occupiers. The market fundamentals in London remain strong and the Board is looking forward to continuing the growth of the business over the next few years.”
This was posted in Bdaily's Members' News section by Tom Keighley .
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