1 June 2011 – preliminary results

The East London residential developer Telford Homes has announced its annual results for the year to 31 March showing higher than expected turnover of £121m (2010: £159m) with pre-tax profits before exceptional items coming in at £2.5m (£8.1m) as expected.  Earnings per share were 4.8p (2010: 13.7p) and the dividend was increased to 2.5p (2010: 2.0p).  The group has reported that the housing market in East London remains robust, boosted by the substantial investment being made in the region ahead of the 2012 Olympics.  Although the current financial year will continue to suffer from reduced output and margins, these effects will have been largely worked through by March 2012 after which significant growth is expected.  The shares remain a BUY.