At 10:30am BST Telford Homes PLC (LON:TEF) traded at 369.12 -0.57%

Telford Homes PLC today announced its final results for the year ended 31 March 2016 reporting a record 42% growth in revenue of £245.6 million for the year up from £173.5 million in 2015. Pretax profit rose by 28%, exceeding original market expectations as it rose to £32.2 million from £25.1 million.

The company also forecast profits would exceed £50 million in fiscal 2019.

Telford announced a final dividend of 7.70p per share, bringing the total dividend to 14.20p, a 27.9% increase up from 11.1p the previous year.

The London-focused residential property developer said its demand for its “typical product” remained strong from investors and owner-occupiers across all developments. Its move into the institutional private rented sector (PRS) have returned ‘exceptional capital returns’ and mark the start of a “new direction” for Telford Homes and could become an increasingly significant part of future sales in the coming years.

Telford Homes stated it has secured over 50% of the cumulative revenue expected in the next three financial years up to 31 March 2019.

It’s development pipeline is in excess of £1.5 billion of future revenue, six times greater than the revenue reported in the year to 31 March 2016.

Chief Executive of Telford Homes, Jon Di-Stefano said:

“The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand. There is a housing crisis in London and a clear imbalance between the supply of homes and the needs of a growing population. This imbalance underpins the board’s plans to increase the number of homes the group is building both for open market sale and subsided affordable housing,”

“Telford Homes is more than 50% forward sold for the next three financial years combined and has a development pipeline greater than six times the revenue reported in the year to 31 March, 2016. The move towards private rented sector sales is an excellent fit with the group’s typical product and area of operation and results in significantly enhanced capital returns”

By Aaron Kidd