East London housebuilder says it will diversify to other parts of London
Profit forecasts for housebuilder Telford Homes have been increased following the publication of end of year results showing 拢3m profit for the year ended March 2012.
Telford鈥檚 broker Shore Capital upgraded 2013 profit forecasts to 拢8m from 拢7.5m, and said that the company will earn 拢10m in 2014.
Revenues at Telford increased by 2% from 拢121.1m in 2011 to 拢123.4m in 2012. The firm saw the number of open market properties completed increase to 314 from 281 in 2011.
Reporting results today, chief executive John di Stefano said the firm had achieved a 鈥渟uccessful year鈥� with 65% of the open market homes for next year already sold. Stefano said the firm was poised for much higher growth in its more profitable homes for private sale, but will downsize its affordable housing business.
The firm sold 540 affordable homes this year, but Shore Capital predicts it will sell around 200 a year by 2014.
Di Stefano said the firm had decided to stop buying new land in outer East London Boroughs, and would focus instead on the area around Docklands and Canary Wharf. The firm will also look for the first time at buying land further west in London, and has made its first purchases in Camden and Lambeth.
Di Stefano said: 鈥淚t鈥檚 a long long time away before there鈥檚 any chance the main focus of the business moves away from East London. It鈥檚 the main focus of the business and it鈥檚 where the opportunity for supply remains.鈥�
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