Telford Homes (TEF)

Telford Homes TEF Logo

A residential developer operating across London engaged in planning, designing and building developments on brownfield sites.

18-Apr-2018 – 423.5p – £319.8m – PER 7.58

Trading Update For The 12 Months To End March 2018 – Expects to report record levels of Revenue and PBT (up by more than 30% and slightly ahead of market expectations – Assisted by an improvement in the gross and operating margins of approximately 3%).  Strong opportunity for further growth in the coming years.

Looks great value and quite tempting even if it’s just to have some exposure to a sector I am avoiding due to “uncertainty”. I have been expecting “blood on the streets” for some time in the housing and automobile sectors, perhaps wrongly! Will remain Neutral here for now.

30-May-2018 – 458.5p – £346.2m – PER 8.22

Final Results For The 12 Months To End March 2018 – Record Revenue of £316.2m (2017: £291.9m), PBT exceeded original market expectations, up by 35% to £46.0m (2017: £34.1m) and well placed to exceed £50m PBT in 2019, a 100% increase over 4 years. Dividend is up 8%.

Still looks good value here. I have been avoiding this sector and perhaps it’s time to take a position now. If I don’t it will go on the Watchlist, 450p.

12-Jul-2018 – 396p – £299.7m – PER 7.04

AGM Statement – In-line and “well placed to achieve our stated goal of exceeding £50 million of total pre-tax profit for the year to 31 March 2019, weighted towards the second half as in previous years”.

This was on my Watchlist at 450p although I didn’t buy in as I am still not sure of the sector. Still unsure of the sector (mainly due to the ongoing Brexit fiasco) I am going to go Neutral here for now.

10-Oct-2018 – 394p – £298.3m – PER 6.97

Trading Update For The 6 Months To End September 2018 – Takes a long time to get to it, but – PBT in H1 2019 will be lower than H2 2019 but expected to be above the £8.7m (achieved in the 6 months to September 2017).

Got to be worth waiting for actual numbers here – I remain Neutral.

28-Feb-2019 – 350p – £265m – PER 6.5

Tradig Update For The 12 Months To End March 2019 – PBT expected to be circa £40m (they kind of expected £50m) with NAV at 330p with 2020 PBT to be significantly below this year.

I remain wary of this whole sector at present and will be staying away here for the time being.

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