Telford Homes Share Discussion Threads

[llef] 11/5/2016 11:59

mmm, that seems contradictory to me - if we get a reversal in house prices and building in london, then why should build cost inflation be 3pc higher in london than elsewhere?

[tudes100] 06/5/2016 00:26

Plan on adding more before results on June 1st. Given the positive recent update and the indication that there will be no profit drop off next year TEF still seems significantly undervalued to me.
General housing stock malaise & book value suggest some caution but I'm still in firm agreement with Jim Slater that a company making £50m PBT in 2 years will be worth a lot more than £240m. In the mean time you'll have to make do with that 4.3% yield whilst the market re-evaluates.

[tudes100] 06/5/2016 00:26

Plan on adding more before results on June 1st. Given the positive recent update and the indication that there will be no profit drop off next year TEF still seems significantly undervalued to me.
General housing stock malaise & book value suggest some caution but I'm still in firm agreement with Jim Slater that a company making £50m PBT in 2 years will be worth a lot more than £240m. In the mean time you'll have to make do with that 4.3% yield whilst the market re-evaluates.

[joe_satriani2] 05/5/2016 22:23

What a strange share, the updates always get better as the price gets lower!

[cutlosses] 04/5/2016 17:26

Down 3% today but no news?

Can anyone tell me what level 2 looks like please.

[essential] 14/4/2016 18:19

Once it breaks the downtrend at 355p ill be in....

[tudes100] 14/4/2016 05:02

Jon Di-Stefano, chief executive said that the market has remained strong for the typical Telford Homes flat, being relatively affordable apartments in London with an average price comfortably below £600,000.

Telford Homes has just launched a 26-storey residential tower in the Isle of Dogs called the Liberty Building, selling 68 of the 105 open market flats in the last four weeks for £40m.

A third of these sales were to UK investors and the remainder to international investors in Hong Kong and China, with 33 sales in the latter representing the Group’s best result to date.

Liberty Building
Telford Homes presses ahead with Liberty Building in the Isle of Dogs amid strong sales demand

The development is expected to be completed in 2019.

In an upbeat trading statement this morning Di-Stefano said that many opportunities were being appraised and negotiated to strengthen the development pipeline, utilising the £50m placing funds raised last October.

He added that private rental schemes also offered significant potential to become an increasing feature of the group’s sales mix over the next few years after selling a North London scheme for £67m to housing association L&Q in February.


Di-Stefano said: “Telford Homes continues to perform above expectations and I am particularly pleased with our first PRS deal alongside the promise of more to come and more recently our successful launch of The Liberty Building.

“Our brand and reputation continue to serve us well attracting repeat purchasers and recommendations to new customers. The Group is now in the strong position of having forward sold more than 50% of the cumulative revenue expected in the next three financial years.

“We are developing in the right parts of London where a lack of supply of new homes is driving demand from owner-occupiers, UK investors, overseas investors, their tenants and increasingly institutional investors.

“As a result of this demand and a substantially enhanced development pipeline the board has been able to increase its longer term growth expectations with profit before tax now forecast to exceed £50m in the year to 31 March 2019.”

[speedsgh] 13/4/2016 14:25

Yes, but if TEF want to attract greater institutional support as the company grows, I would have thought a move to a main listing would be a necessity.

[speedsgh] 13/4/2016 11:02

Would've thought TEF will want to look at a move from AIM to a main listing at some point? Currently in AIM50 index.

[speedsgh] 13/4/2016 10:21

Something here for income seekers too. Currently forecast to pay 13.60p in the current FY (2014/15: 11.10p) rising to 15.35p in 2016/17. That's increases of 22% & 13% respectively. I suspect that current forecasts may prove to be conservative. Long term hold imo.

[cwa1] 13/4/2016 08:42

I'm with Shanklin on this one. Seems fairly lazy just to put out a reiteration of an old note when it looks, to me at least, that things have changed on a pretty bullish update. I don't mind if they don't have the time to put out a new note today-but leave it until they have time to properly revisit and reassess the situation, then put out an updated note(always assuming the above is correct).

[shanklin] 13/4/2016 08:36

Well they could update their forecasts to reflect the TS. Fairly ludicrous that TEF upgrade their expectations and PH ignore this, if that is what has happened.

[rubberbullets] 13/4/2016 08:35

125p to climb then. Nice!!

[muscletrade] 13/4/2016 08:34

peel hunt have reiterated their buy reco and 475p target this morning. what else could they say as have been at 475 for ages.

[owenski] 13/4/2016 08:22

Been watching these for a while so bought in at the open. The price should correct in the fullness of time, although external risks are perceived the business fundies are sound and looking very cheap. Certainly worth buying at these levels, very attractive business. IMO

[rubberbullets] 13/4/2016 08:21

450p next level on chart

[rubberbullets] 13/4/2016 08:11

Caradog 13 Apr'16 - 07:31 - 1900 of 1904 0 0

"the Group no longer expects there to be a dip in profit levels in the year to 31 March 2017, an issue originally created by planning delays. Instead the Board expects profit levels to continue to grow particularly into 2018 and 2019 such that profit before tax is now expected to exceed £50 million in the year to 31 March 2019, ahead of expectations stated at the time of the placing in October 2015."

Which means PE ratio of 5 or less in 3 years.

Excellent!




WOWZER

[rubberbullets] 13/4/2016 08:08

just wait will catchup

[qs99] 13/4/2016 08:04

Given its confidence, surprising this is not pushing £4 IMO/DYOR

[jon l] 13/4/2016 07:41

Will be interesting to watch this work its way into market sentiment, which has been spooked by the forecast eps dip in 2017, dilutive placing, and plenty of headlines about "London" house prices softening. The "London" in those headlines is not TEF's niche at all. And now that dip is removed from guidance (as has been evident for a while before this formal announcement). Can't ask for much more.

[essential] 13/4/2016 07:40

Needs to close above 350p to break the year long downtrend

[caradog] 13/4/2016 07:31

"the Group no longer expects there to be a dip in profit levels in the year to 31 March 2017, an issue originally created by planning delays. Instead the Board expects profit levels to continue to grow particularly into 2018 and 2019 such that profit before tax is now expected to exceed £50 million in the year to 31 March 2019, ahead of expectations stated at the time of the placing in October 2015."

Which means PE ratio of 5 or less in 3 years.

Excellent!

[muscletrade] 13/4/2016 07:21

difficult to fault that great update, well done telford team.