RNS Number:2263S
Telford Homes PLC
19 November 2003
EMBARGOED FOR RELEASE AT 7.00AM ON 19 NOVEMBER 2003
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
Telford Homes, the London-based house builder specialising in the redevelopment
of sites within residential areas principally in North and East London, today
announces its interim results for the six months ended 30th September 2003.
Highlights
* Turnover increased by 74% to #15.2 million (2002 - #8.7 million)
* Contracts exchanged on 88 properties, including 80 open market homes at an
average price of #205,000
* Profit before tax increased by 48% to #2.1 million (2002 - #1.4 million)
* Basic earnings per share 5.77 pence (2002 - 4.43 pence)
* Interim dividend declared of 1.5 pence per share (2002 - 1.0 pence per
share)
* Twelve developments contributed to the first half
results
* Completed construction on seven sites in the period and handed over 98 new
properties
* Successful development launch at Abbotts Wharf securing
reservations on 75% of the open market apartments
* Current trading remains strong supported by continuing
demand for the product
Commenting on the results, Andrew Wiseman, Chief Executive of Telford Homes,
said :
"During the six months ended 30th September 2003 we have made significant
progress in the business with turnover up 74%, profit before tax up 48% and 98
new properties handed over to customers. We continue to add to our stock of land
and we have several exciting new developments lined up for 2004 and 2005. Our
interim results and subsequent trading give me confidence that we will continue
to produce excellent results and I look forward to reporting on further success
for the full year."
For further information, please contact :
Telford Homes
Andrew Wiseman, Chief Executive 020 8498 6789
Jon Di-Stefano, Financial Director
Shore Capital
Alex Borrelli, Jonathan Nelson 020 7408 4090
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
CHIEF EXECUTIVE'S STATEMENT
Results
Once again, I am pleased to report excellent results for the Company. For the
six months ended 30th September 2003, turnover increased by 74% to #15.2 million
(2002 - #8.7 million) and profit before tax increased by 48% to #2.1 million
(2002 - #1.4 million).
We have exchanged contracts on 88 properties in the period with a total value of
#17.8 million. Of these, 80 were open market homes, six were affordable homes
and two were commercial units. The open market homes achieved an average selling
price of #205,000 which compares with #214,000 in the year ended 31st March
2003. This decrease reflects a lower value mix of units whilst underlying prices
have remained static across the period in our target market.
The results are very much in line with our expectations and the Board has
declared an interim dividend of 1.5p per share, a 50% increase on last year.
Development sites
During the first six months contracts were exchanged on properties at 12
different development sites and we completed construction on seven sites with
all of the properties now handed over to customers.
We had four new project launches in the period including our development at
Abbotts Wharf on the Limehouse Cut canal. This was particularly successful with
76 of the 101 open market apartments reserved. To date, we have exchanged
contracts on 47 of these apartments and the remainder are proceeding to
contract. Abbotts Wharf is a joint development with East Thames Housing Group
and construction of all 201 open market and affordable apartments, a new marina
and some commercial space is now underway with completion programmed from 2005.
Of even greater significance to our first half result was continued progress at
Goldsmiths Row, adjacent to Haggerston Park E2, where we have now exchanged
contracts on 29 of the 35 open market apartments with build completion expected
by Spring 2004.
Our development stock now includes a site at Wenlock Road N1, backing on to the
Wenlock Basin, where we have a planning application in progress for 59
apartments and 40,000 square feet of commercial space. We have also agreed terms
with James Smith Estates Plc on a joint venture to create 24 apartments and four
commercial units all within an existing concrete framed building overlooking
Chelmsford's waterways. We continue to appraise many opportunities to increase
our activity.
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
CHIEF EXECUTIVE'S STATEMENT (continued)
Finance
The Company continues to receive strong support from its banking partners
enabling the growth of the business to be maintained while keeping it on a sound
financial base. Our strategy of providing good quality one and two bedroom
apartments in East London, priced predominantly under #250,000, continues to
enable us to sell at an early stage in the development process and secure our
future cash inflows. Consequently, our bank debt is supported at this early
stage by additional value in the form of exchanged contracts. At 30th September
2003 gearing was 117% and we expect this to increase in the coming months as we
continue to maximise our return on equity.
Following our success at the London Stock Exchange AIM awards last year, we were
delighted to be nominated for the AIM 'Company of the Year' award this year. To
be nominated for an award like this underlines the immediate success of the
Company and we hope to continue to achieve such recognition in the wider
investment community.
People
Our strength comes from our employees and, following the Board appointments last
year, we continue to add to the skills and experience of the Telford Homes team
with the appointment of key management both at head office and on our
development sites.
In the period to 30th September 2003, we achieved legal completion on 98
properties compared with 56 in the year ended 31st March 2003. Good handover
procedures, quality control and customer support are vital to our business and
during the period we employed a dedicated Customer Service Manager. This will
ensure consistently high standards are achieved in both product finish and
after-sales service.
We expect to put in place shortly an employee share incentive plan enabling our
staff to participate in the success of the Company. In addition I am pleased to
note that our new directors are participating in the Company's equity through
their acquisition of shares from existing directors.
On behalf of the Board, my thanks and congratulations go to all of our employees
for their efforts in the last six months and I know this will continue in the
future.
Current trading and outlook
Since the 30th September 2003 we have exchanged contracts on a further 22
properties with a sales value of #4.6 million. In addition to this we currently
have 43 properties sold, subject to contract, with a combined sales value of
#10.2 million.
In the light of this performance, we are confident that we will continue to
produce excellent results and I look forward to reporting on further success for
the full year.
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
PROFIT AND LOSS ACCOUNT
Note 6 months ended 6 months ended 12 months ended
30th September 30th September 31st March
2003 2002 2003
#000 #000 #000
Turnover 15,222 8,725 25,334
Cost of sales (11,635) (6,334) (18,449)
Gross profit 3,587 2,391 6,885
Administrative expenses (1,122) (671) (1,910)
Operating profit 2,465 1,720 4,975
Interest receivable 32 16 22
Interest payable and similar (421) (332) (725)
charges
Profit on ordinary activities 2,076 1,404 4,272
before taxation
Taxation on profit on ordinary (623) (421) (1,282)
activities 2
Profit on ordinary activities 1,453 983 2,990
after taxation
Dividends paid and proposed 3 (378) (246) (755)
Retained profit for the period 1,075 737 2,235
Retained profit brought forward 2,974 739 739
Retained profit carried forward 4,049 1,476 2,974
Earnings per share:
Basic 4 5.77p 4.43p 12.67p
Diluted 4 5.62p 4.39p 12.58p
The Company has no other recognised gains and losses other than those included
in the profit and loss account.
All activities are in respect of continuing operations.
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
BALANCE SHEET
Note As at As at As at
30th September 30th September 31st March
2003 2002 2003
#000 #000 #000
Fixed assets
Tangible assets 644 299 681
Current assets
Stocks and work in progress 22,103 13,960 19,810
Debtors 13,831 9,672 18,152
Cash at bank and in hand 1,081 1,071 239
37,015 24,703 38,201
Creditors - amounts falling due (23,140) (13,568) (25,427)
within one year
Net current assets 13,875 11,135 12,774
Total assets less current 14,519 11,434 13,455
liabilities
Creditors - amounts falling due (98) (86) (109)
after more than one year
Provision for liabilities and (4) (4) (4)
charges
Net assets 14,417 11,344 13,342
Financed by:
Capital and reserves
Called up share capital 5 2,518 2,455 2,518
Share premium 5 7,850 7,413 7,850
Profit and loss account 5 4,049 1,476 2,974
Equity shareholders' funds 6 14,417 11,344 13,342
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
CASH FLOW STATEMENT
Note 6 months ended 6 months ended 12 months ended
30th September 30th September 31st March
2003 2002 2003
#000 #000 #000
Cash flow from operating 7 1,779 (2,124) (7,052)
activities
Returns on investments and
servicing of finance
Interest received 32 16 22
Interest paid (415) (327) (713)
Hire purchase interest (6) (5) (12)
(389) (316) (703)
Taxation - (287) (382)
Capital expenditure
Purchase of tangible fixed assets (57) (63) (404)
Sale of tangible fixed assets 57 - 12
Equity dividends paid (504) (203) (454)
Cash flow before financing 886 (2,993) (8,983)
Financing
Issue of ordinary share capital - 3,030 3,530
Expenses of share issue - (158) (158)
Increase in bank loans 36 1,601 6,350
Capital element of hire purchase (80) (48) (139)
payments
(44) 4,425 9,583
Increase in cash 842 1,432 600
Reconciliation of net cash flow to
movement in net debt
Increase in cash 842 1,432 600
Increase in bank loans (36) (1,601) (6,350)
Capital element of hire purchase 80 48 139
payments
Decrease (increase) in debt 886 (121) (5,611)
arising from cash flow
Inception of hire purchase (69) (33) (177)
agreements
Movement in net debt in the period 817 (154) (5,788)
Net debt brought forward (16,551) (10,763) (10,763)
Net debt carried forward 8 (15,734) (10,917) (16,551)
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
NOTES
1 Basis of preparation
The figures for the six months ended 30th September 2003 and the six months ended 30th September 2002 are unaudited and
do not constitute statutory accounts within the meaning of section 240 of the Companies Act 1985. The interim report
has been prepared under the historical cost convention and on a basis consistent with the accounting policies in the
financial statements for the year ended 31st March 2003. The results for the year ended 31st March 2003 and the balance
sheet of that date are an extract from the statutory financial statements for that period, which have been filed with
the Registrar of Companies and on which the Company's auditors gave an unqualified report.
2 Taxation
Taxation has been calculated on profit for the six months ended 30th September 2003 at the estimated effective rate of
tax of 30%.
3 Dividends
The interim dividend declared for the six months ended 30th September 2003 is 1.5p per ordinary share and is expected
to be paid on 12th January 2004 to those shareholders on the register at the close of business on 19th December 2003.
The interim dividend paid for the six months ended 30th September 2002 was 1p per ordinary share and the final dividend
paid for the year ended 31st March 2003 was 2p per ordinary share making a total of 3p per ordinary share.
4 Earnings per share 6 months ended 6 months ended 12 months ended
30th September 30th September 31st March
2003 2002 2003
Weighted average number of shares 25,175,000 22,202,459 23,595,753
in issue
Dilution - effect of share 683,706 169,684 172,631
options
Diluted weighted average number 25,858,706 22,372,143 23,768,384
of shares in issue
Profit on ordinary activities #1,453,000 #983,000 #2,990,000
after taxation
Earnings per share:
Basic 5.77p 4.43p 12.67p
Diluted 5.62p 4.39p 12.58p
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
NOTES (continued)
5 Reserves Share capital Share premium Profit and loss Total
account account
#000 #000 #000 #000
At 1st April 2003 2,518 7,850 2,974 13,342
Retained profit for the period - - 1,075 1,075
At 30th September 2003 2,518 7,850 4,049 14,417
6 Equity shareholders' funds
#000
Profit for the period 1,453
Dividends (378)
1,075
At 1st April 2003 13,342
At 30th September 2003 14,417
7 Reconciliation of operating profit to cash flow from operating activities
6 months ended 6 months ended 12 months ended
30th September 30th September 31st March
2003 2002 2003
#000 #000 #000
Operating profit 2,465 1,720 4,975
Depreciation 117 76 179
Profit on sale of tangible fixed (11) - (12)
assets
Increase in stocks and work in (2,293) (853) (6,703)
progress
Decrease (increase) in debtors 4,321 (3,196) (11,676)
(Decrease) increase in creditors (2,820) 129 6,185
Cash flow from operating activities 1,779 (2,124) (7,052)
TELFORD HOMES PLC ('Telford' or 'the Company')
Interim results for the six months ended 30th September 2003
NOTES (continued)
8 Analysis of change in net debt
At 1st April Cash flows Inception of At 30th September
2003 finance leases 2003
#000 #000 #000 #000
Cash at bank and in hand 239 842 - 1,081
Bank loans (16,570) (36) - (16,606)
Hire purchase (220) 80 (69) (209)
liabilities
(16,551) 886 (69) (15,734)
9 Interim report
Copies of this announcement are available from the Company at 3 Buckingham Court, Rectory Lane, Loughton, Essex IG10
2QZ. The Company's interim report for the six months ended 30th September 2003 will be posted to shareholders shortly.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR NKFKNFBDDDDD
