The company announced its trading update ahead of its interim results for the six months ended 30 September 2018. Its reported profits in any given period are strongly influenced by the number of open market completions achieved and these do not fall equally across a year.
As with the previous two interim reporting periods, and as expected, there will be fewer completions in the first half of the year to 31 March 2019 than in the subsequent six months. PBT for the H1 2019 will hence be lower than H2 2019 but is expected to exceed the £8.7m achieved in the six months to 30 September 2017.
The interim dividend is proposed to increase in accordance with the anticipated full-year profit growth. To achieve the target of exceeding £50m of PBT for the year to 31 March 2019, Telford Homes has under 90 homes left to sell alongside some affordable and build to rent contracts that it expects to exchange during the next six months.
Jon Di-Stefano, TEF’s Chief Executive, commented: “Our key objective is to fulfil the ongoing demand for the homes that London needs. Notwithstanding the uncertainty surrounding the outcome of Brexit, the Group continues to perform well and is focused on increasing the scale of the business driven by the need for homes at affordable price points, in particular in the rental sector. We remain confident that our approach to forward sales with increased visibility over profit recognition enhanced by our success in build to rent will enable us to deliver strong long term returns to our shareholders.”