For the year ended 31 March 2016, Telford Homes generated £245.6m in revenues, a new high for the company and up 42% on the previous year (2015: £173.5m).
Pre-tax profit for the year was ahead of market expectations, increasing 28% to £32.2m (2015: £25.1m).
Chief executive Jon Di-Stefano said: "It has been another exceptional year for Telford Homes resulting in record revenue and profits. The group has been successful in forward selling homes through traditional channels and has added to this by contracting its first significant sales in the private rented sector. The 2015 equity placing for £50m, together with substantial headroom in the group's £180m revolving credit facility, means Telford Homes is in a strong position to continue its growth.”
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He added: “There have been some recent and justifiable concerns over prime residential properties in London but this is a different market to that served by Telford Homes. The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand. There is an ongoing housing crisis and a clear imbalance between the supply of homes and the needs of a growing population. Telford Homes is building homes for Londoners in a market where demand continues to significantly outstrip supply, and the board believes that this undeniable structural factor will underpin the group's future growth."
Mr Di-Stefano said that build cost inflation in London was running at around 4-5%, which was in line with sale price inflation and was therefore sustainable. He said the company had seen no shortages in subcontracted trades or materials.
Telford Homes exchanged contracts for the sale of 403 open market properties in the year to 31st March 2016 and renegotiated the contractual dates on a further 145 open market homes at City North, N4 which formed part of the acquisition from United House in September 2015.
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