Telford Homes – 177.5p

28 November 2012 – interim results

Figures for the six months to 30 September 2012 were outstanding.  Revenue jumped to £78.3m (2011: £58.6m), including 252 open market completions (2011: 125).  Profit before tax was £6.5m (2011: £1.5m).  It is very reassuring to hear that the Group has sold over 90% of its target open market completions for the year to 31 March 2013 and over 60% for the following year.  Net debt has been cut to £31.7m from £54.6m six months ago but is due to rise again as further sites are acquired and developed.  The company is confident that profits for the year to 31 March 2013 will be in line with market expectations and sees significant growth in the following year.  Although the share price has outperformed significantly we retain our BUY rating.

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