Turnover in the 12 months to 31 March 2009 was higher at ВЈ110m (figure in previous year: ВЈ100m).
Pre-tax profit ran to ВЈ4.3m, down from the figure of ВЈ6.5m in 2008.
Telford would have managed a £7.3m profit if it hadn’t been for the toll of exceptional charges:
£2.9m – the reduction in the value of land and work-in-progress
£100,000 – redundancy costs
Telford is a residential developer in East London with a focus on regeneration projects within public sector partnerships.
Andrew Wiseman, chief executive, said he had positioned Telford to withstand the downturn in open market housing and is now receiving grants from the Homes and Communities Agency (HCA) to increase the provision of affordable housing.
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The ВЈ57m deal will part-finance more than 400 affordable homes over the next three years.
“This will enable us to continue profitable construction with the security of substantial forward sales on these projects,” said Wiseman.
“We continue to work with each of our customers to achieve successful completions but we are cautious in our expectation of failed contracts, should mortgage availability not improve. .
"The regeneration of East London is ongoing. The slow down in open market residential construction will exacerbate the shortage of new housing.”
Wiseman has seen increased activity at Telford’s sales outlets over the last few weeks and “steady progress on legal completions”
The number of open market property completions achieved rose to 350 from 306 in the previous year. Total revenue has grown by 10%.
In September 2008, Telford switched to a new accounting standard which resulted in a change to its accounting policies in relation to open market private homes with revenue and profit now recognised on legal completion.
On affordable homes, sold to housing associations under construction contracts, revenue and profit is recognised on a percentage of completion basis.
There are currently over 700 affordable homes being developed and payments will continue to be received from the group's housing association partners as construction of these homes progresses.
Efforts to secure new sales have been concentrated on developments at Queen Mary's Gate in South Woodford and Nayland Court in Romford.
At Queen Mary's Gate the first phase of the development, including 184 open market homes, was completed in May 2008 and all but one have been sold and occupied with the final property now reserved.
At Nayland Court, Telford has 26 build-complete homes remaining for sale with demand for these being maintained by the 'My Choice Home Buy' scheme (MCHB) from the HCA - this provides a mortgage for up to 50% of the home with the further attractions of a low deposit and interest rate.
The processing of MCHB applications suffers from periodic delays in the release of funds but the group has seven homes currently reserved on the development all using this product.
