Telford Homes Plc - Final Results

Final Results

 

Telford Homes Plc (AIM:TEF), the London focused residential property developer, today announces its final results for the year ended 31 March 2019.

 

Highlights

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Record total revenue up 12 per cent to £354.3 million (2018: £316.2 million) with the proportion from build to rent developments at 31 per cent (2018: 21 per cent)

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Strategic shift towards build to rent developments accelerated in the period with a greater emphasis on lower risk and less capital intensive developments

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Total profit before tax in line with the Group's previous announcement at £40.1 million (2018: £46.0 million) due to the increased proportion of lower margin build to rent developments within total revenue

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Gearing reduced to 37.0 per cent at 31 March 2019 (September 2018: 52.2 per cent)

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Proposed final dividend of 8.5 pence per share, maintaining the total dividend for the year at 17.0 pence per share (2018: 17.0 pence)

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Completed and handed over in excess of 300 build to rent homes to date with a further 1,422 currently in progress

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Entered into strategic build to rent partnerships with Invesco and M&G Real Estate to accelerate growth in the sector and expecting to develop significant pipelines with both in the coming years

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Development pipeline of 4,900 homes (2018: 4,000) with a total expected gross development value of £1.59 billion (2018: £1.31 billion)

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The split of the current pipeline in terms of the number of homes is now expected to be 70 per cent on build to rent led developments and 30 per cent on developments led by individual sales

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No change to the Group's profit before tax expectations for FY 2020

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Recognised in the 2018 NextGeneration sustainable housing benchmark report as the most improved housebuilder for the second consecutive year.

 

Commenting on the Final Results, Jon Di-Stefano, CEO of Telford Homes, said: "Our business model is increasingly focused on build to rent housing and the reduced risk and lower capital requirements it brings. Despite some challenges, our performance in the year to 31 March 2019 represents a great achievement for Telford Homes with revenue at an all-time high due primarily to an increased proportion of build to rent contracts. 

 

Over the last three years we have made substantial progress against our objective to increase our output of build to rent homes to meet demand from institutional investors and to deliver high quality rental properties in the capital. There remains a long-term structural imbalance between housing supply and housing need in London. Our recently announced partnerships with Invesco and M&G signal our reputation as a trusted build to rent partner, and as such are a significant step as we continue to develop our profile at the forefront of this burgeoning sector."