Telford Homes has revealed a sharp rise in profits in the first half of this year.
The housebuilder reported a 16% rise in first-half profits to £10.1m. Total revenue increased by 31% to £129.6m.
Telford Homes said that despite strong first-half results, the company still has “work to do” to achieve its full-year targets amid uncertainty over Brexit.
The group is on track to achieve a full-year profit of £40m.
“Despite an increasingly uncertain economic and political backdrop, Telford Homes has made pleasing progress in the first half of the financial year. The strategic transition continues to be beneficial to our risk profile and growth potential, while also coming at the right time in terms of the changing requirements of our typical London customer,” said John DiStefano. Ta. Chief executive.
“We believe that there is a fundamental undersupply of housing outside of London’s prime locations and that short-term market sentiment will not change the long-term structural imbalance between housing supply and housing need. These factors, together with our excellent reputation as a trusted rental construction partner and the accompanying changes in our business model, give us confidence that we look forward to further success in the future. ” he added.
Telford Homes has been moving towards rental housing over the past three years and has already built 1,750 rental homes during this period.
Research by the Royal Institution of Chartered Surveyors (RICS) suggests that Brexit is hitting the property market hard.
Amid Brexit uncertainty, sales are taking longer to complete, house prices are falling and the number of buyers is falling.
Simon Rubinson, chief economist at RICS, said: “Respondents’ comments this month cover a number of themes, with uncertainty related to the Brexit negotiations at the top of the list, followed by “Continued references to confidential British government statements.” The Governor of the Bank of England becomes a member of the Cabinet. ”
“It’s no surprise that all of this is hurting the sales market,” he added.
Group Shares (LON: TEF) is trading at +2.17% (1007GMT).
