Shares in housebuilder Telford Homes (LON:TEF) shot up nearly 4 percent at market open on Wednesday, after a demand boost in London meant it was “business as usual” despite an uncertain climate.
The group said it remained well positioned to meet market expectations for the full year, having already secured over 95 per cent of gross profit. Its success continued to be underpinned by a structural shortage of homes to buy and rent in non-prime areas of London, which are central to its longer term growth plans.
The company recorded total forward sales of over £580 million, with over £1.4 billion in its development pipeline. Pre-tax profit fell slightly to £8.7 million in the six months to 30 September, due to completion timings, but the group increased its interim dividend by 11.1 per cent to 8 pence.
Jon Di-Stefano, Chief Executive of Telford Homes, commented:
“Although there is short term uncertainty, we still just need to build more homes in London. The mayor has raised the level of homes needed [to 66,000 a year] and we’re still not delivering anything like those numbers.”
However, he continued: “We have a development pipeline of nearly 4,200 homes, worth GBP1.4 billion, set to be delivered into an undersupplied London market over the next few years. We are confident that we can deliver on our aspirations and continue to grow Telford Homes in order to secure long term value for our shareholders.”
Shares in Telford Homes soared on the figures, currently trading up 4.25 percent at 417.00 (1327GMT).
