Revenue down 25% but housebuilder plans for expansion
East London listed housebuilder Telford Homes has seen profits fall in half after it reduced output and focused on affordable housing in the recession.
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Telford reported preliminary results today showing pre-tax profit of 拢3.0m for the year ending March 2011, compared to 拢7.3m the year previous, a fall of 59%. Revenue for the year fell by 24% to 拢121.1m.
However, the firm said the drops in revenue and profit had been planned for, and it was now lined up to expand with the help of a new 拢70m banking facility.
It has also achieved significant numbers of pre-sales of its new homes to far-eastern investors, with the number of contracts exchanged up by 45% to 368.
This, however, is not reflected in the bottom line because Telford books profit upon completion of the sale.
Chief executive Andrew Wiseman said: 鈥淲e鈥檙e ramping up our construction and now have 1,500 homes under construction, and we鈥檙e acquiring land in what is still a reasonably depressed land market. There will be a big increase in our future performance.鈥�
Wiseman said the number of homes completed would increase from 280 this year to up to 450 by 2013, and continue to increase beyond that.
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