PRELIMINARY RESULTS 31 March 2011
GREENWICH CREEKSIDE
properties, an increase of 45% (2010: 253) Final dividend of 1.25p making 2.5p for the year • Number of open market completions reduced to 281 as expected (2010: 389) • Profit before tax in line with market expectations • Contracts exchanged for the sale of 368 open market (2010: 2.0p) reflecting stronger long term prospects • Strong demand for early sales of future developments, particularly from purchasers in the Far East • £70 million banking facility finalised in March 2011 • Overview 01 www.telfordhomes.plc.uk
£3.4m £21.0m (£0.8m) EPS 4.8p £9.4m for the year ending 31 March 2011 Operating profit before exceptional items 16.5% 15.1% Gross margin adjusted for interest £15.4m £0.5m Gross profit before exceptional items £159.3m £121.1m Revenue 13.7p Dividend per share 2.5p 2.0p 02 Exceptional items Group income statement March March 2011 2010 Profit before tax and exceptional items £2.5m £8.1m Profit before tax £3.0m £7.3m TELFORD HOMES Plc Preliminary Results
• 03 • exceptional items to be similar year-on-year 31 March 2012 such that the Board expects profit before Reduced supply and lower margins will continue to • open market developments due to the switch to affordable housing and impaired Gross profit margin before loan interest down to 15.1% developments to be completed mid-2012 to mid-2014 the business by the end of the new financial year Sales performance has exceeded expectations for off-plan • than lack of demand Decline in completions and revenue is due to supply rather • of finished open market homes Half way through a two year period of reduced output • The effects of both will have substantially worked through Revenue and profit www.telfordhomes.plc.uk
for the year ending 31 March 2011 QUEEN MARY’S GATE, WOODFORD TELFORD HOMES Plc Preliminary Results
Acquired remaining 50% of Greenwich Creekside in 05 Signs of improvement in the number of mortgages • demand properties remains a significant restriction on Availability of mortgage finance for new build • on the first phase September 2010 and handovers are well underway • to be unchanged in 2011 of nearly 500 across the development and there are fewer than 60 homes left to be sold out Final phase of Queen Mary’s Gate finished late in 2010 • consistent during the year remained steady and visitor levels have been Rate of sales of finished homes to UK buyers has • available but CML expects gross lending for housing UK sales and mortgages www.telfordhomes.plc.uk
for the year ending 31 March 2011 MATCHMAKERS WHARF, E9 TELFORD HOMES Plc Preliminary Results
over 170 of the 257 open market homes have been Equally strong off-plan demand in London such that • a 20% deposit Majority of overseas sales are secured with • late 2013 Handovers at Avant-garde will commence from • sold in just a few weeks will be recognised in future years • developments overseas to secure revenue that 120 homes sold Avant-garde launched in Far East in April 2011 with • Primarily sold in Hong Kong, Malaysia and Singapore • very successful the Hawksmoors and Avant-garde have been Overseas launches including Matchmakers Wharf, • Group will continue to market appropriate Overseas sales 07 www.telfordhomes.plc.uk
for the year ending 31 March 2011 LANRICK ROAD, E14 TELFORD HOMES Plc Preliminary Results
Overall funding of affordable housing uncertain 09 All developments currently under the Group’s control • housing and ensuring developments remain viable important in maximising the value of affordable Housing associations and local authorities will be • with ‘affordable rent’ tenure not yet tested • revenue stream contracted for the affordable housing Significant cuts in future grant funding • of £72.9 million Received £55.1 million out of total secured allocation • agreement with the HCA Completed first four developments under grant • either entirely open market housing or with a secured Partnerships and affordable housing www.telfordhomes.plc.uk
for the year ending 31 March 2011 VELLUM, WALTHAMSTOW TELFORD HOMES Plc Preliminary Results
Interest at 3.5% over LIBOR and 1.25% arrangement fee • be utilised over the next few years Initial drawdown leaves headroom of £38.1 million to • Funds advance at 60% of cost • every aspect of the business and its financial position Secured against a portfolio of land and development sites Process involved a year of extensive investigation of • Club of three banks being RBS, HSBC and Santander • 31 March 2011 Three and a half year £70 million facility signed on • • £70 million banking facility 11 www.telfordhomes.plc.uk
£14.2m £18.8m (£27.8m) (£29.0m) Other liabilities (£70.8m) (£64.9m) Borrowings £7.6m for the year ending 31 March 2011 Other current assets £33.6m Cash Net debt £120.0m £125.2m Inventories £0.5m £0.4m Non current assets £37.2m Gearing 71% 59% 12 £46.1m Group balance sheet March March 2011 2010 Net assets £64.7m £63.1m TELFORD HOMES Plc Preliminary Results
• 13 Avant-garde funding has been credit approved Greenwich Creekside fully funded by RBS and • Two significant sites outside of main banking facility • £46.1 million and gearing at 71% Gross borrowings reduced with net debt at by first drawdown on new facility Pears Group, and substantial pre-sales Cash balances remain strong at £18.8 million inflated • value per share (31 March 2010: 71%) Share price on 31 March 2011 was just 58% of that • Net assets per share of 132.1 pence • by HSBC assisted by new JV partner, The Willliam Assets and borrowings www.telfordhomes.plc.uk
for the year ending 31 March 2011 CHANDLERS KEEP, E1 TELFORD HOMES Plc Preliminary Results
• 15 • All current developments have planning permission • to planning policy it is hoped this will encourage a pragmatic approach New Homes Bonus is valuable to local authorities and • over future policy and ‘localism’ Limiting exposure to planning risk given uncertainty development pipeline of 1,904 properties for developments not yet under the Group’s control and debt for future investment to add to current Placing in 2010 and new banking facility provide equity • eight sites to provide 141 open market homes Group has been buying land during the year purchasing • now being felt in reduced output Impact of not investing in land during the recession • Working with several landowners to secure planning Land acquisition www.telfordhomes.plc.uk
16 for the year ending 31 March 2011 KINETICA, E8 KINETICA, E8 TELFORD HOMES Plc Preliminary Results
Andrew Wiseman standing down as Chief Executive AGM on 14 July 2011 July 2011 Jon Di-Stefano appointed as Chief Executive from • David Holland to become Senior Non-Executive Director • before returning as Executive Chairman in January 2012 • Katie Rogers to be appointed as Financial Director from resulted in a 97% recommendation rate Independent survey of customers throughout 2010 • Homes and Property awards and two NHBC awards commendations from the London Evening Standard 2010 Award winning developments including two special • • Operations and board changes 17 www.telfordhomes.plc.uk
for the year ending 31 March 2011 AVANT-GARDE, E1 TELFORD HOMES Plc Preliminary Results
• 19 year away undersupply of new housing and the Olympics just a Market in East London remains robust with ongoing • Finance in place to add to the development pipeline • Pre-sales secured for future years worked through the business by 31 March 2012 Longer term prospects for Telford Homes remain strong Reduced output and margins will have substantially • with Avant-garde Overseas sales very successful continuing into new year • by 45% Number of open market homes exchanged increased • • Current trading and outlook www.telfordhomes.plc.uk
First Floor Stuart House Queensgate Britannia Road Waltham Cross Hertfordshire EN8 7TF Telford Homes Plc
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