Telford Homes released a trading update today. The company expects PBT to be around £40m and NAV per share is anticipated to be approximately 330p as at 31 March 2019. The group will be focusing on build-to-rent, which is expected to exceed 50% of the development pipeline before the end of 2019 and increase thereafter.
It also declared that a new forward fund build-to-rent partnership is expected imminently after a successful selection process. The group expects the profit beyond FY20 to grow again and the annual dividend to be at least the 17p per share for this period.
A programme delay of six months at City North, outside of the group’s control, is expected to defer £15m of profit between FY 2020 and FY 2021, resulting in a PBT for FY 2020 lower than that of FY 2019.
Jon Di-Stefano, Telford Homes, CEO said: “A number of factors are affecting our short term ability to deliver the scale of profits we believe Telford Homes is capable of achieving. However our business model is increasingly focused on build to rent and the reduced risk and lower capital requirements it brings. We believe that build to rent housing will be one of the keys to solving London’s housing crisis and we expect to significantly increase our output of homes under this new model over the next five years.”