East London housebuilder makes acquisition for 拢6.3m to improve cash flow

East London housebuilder Telford Homes has bought contractor Clifford Contracting from Puma Venture Capital for 拢6.3m.

The deal will be funded by 拢5.7m of loan notes and the remainder will be in shares.

In a statement, the company said the addition of a contracting business would give it extra cash flow to fund failed completions and unsold properties at more attractive terms than via bank financing.

Clifford Contracting had an estimated operating profit of 拢35,000 in the year to 30 April 2009 and cash of 拢6.3m.

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