A 10 October update put down some clear markers for open-market sales to attain £50m+ group PBT in FY19 and for build-to-rent (BTR) sector expectations during H219. Some market risk remains evident at higher open-market price points and, with increasingly risk-averse UK equity market sentiment, Telford's (LON:TELF) trading update was not well received. However, short-term market conditions are not distracting management from the development of an attractive pipeline of future project opportunities.
H1 progress and H2 bias expected again in FY19
Telford has a portfolio of current on-site development projects and ten are scheduled for construction completion in the next 18 months or so. Of these, three are to be substantially complete during this financial year adding to available stock and driving the timing of owner-occupier sale commitments. Telford management expects H1 PBT to be ahead y-o-y. It also stated that c 90 open-market sales are required (and 25 are in the slower-moving £600,000+ bracket) in H2 to deliver full-year PBT above £50m. It is reasonable to expect this to be based on other assumptions (eg average selling price achieved and progress with BTR sites), but they were not specified.
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