Telford Homes – 140.5p

22 October 2012 – trading update

An upbeat trading update has been released, covering the six months to 30 September.  A significant increase in profits expected for the period with a total of 252 legal completions achieved versus 125 in the same period a year earlier.  Margins have improved significantly and profit before tax for the year to 31 March 2013 is expected to be in line with market expectations.

The company has said that it already anticipates profits ahead of market expectations for the year to 31 March 2014 due to pre-sales secured at higher than expected margins.  An extended debt facility of £90m provides sufficient headroom to develop all existing schemes and acquire new sites.  With positive momentum continuing to build we retain our BUY rating.

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