I don't think their name "Telford" indicates where they operate - East London according to Shares.

The current sp 1.50 is more-or-less the price prior to the Olympic Bid, which probably gave the sp a boost, withouit looking to far to the cost involved.

It's been all downhill for the last 12-months - Oooo deary.
The yield isn't good, despite the fall.

Trading Update
RNS
RNS Number : 2721M
Telford Homes PLC
12 October 2016
 
 
For Immediate Release
12 October 2016
 
Telford Homes Plc
('Telford Homes' or the 'Group')
 
Trading Update
 
Telford Homes Plc (AIM:TEF), the residential property developer focused on non-prime London, is pleased to provide the following update on trading ahead of its interim results for the six months ended 30 September 2016 ('H1 2017' or the 'period'), which will be released on Wednesday, 30 November 2016.
 
Highlights
·      Long term imbalance between the supply of homes and the demand for somewhere to live in non-prime areas of London underpins future prospects for Telford Homes
·      Strong forward sold position now exceeding £650 million of revenue to be recognised from the year to 31 March 2017 onwards
·      Increasing sales activity in respect of residual availability over the last six weeks
·      Next significant sales launch will be City North, N4 in November 2016 where a £110 million loan facility was recently signed with LaSalle Residential Finance Fund
·      Second PRS sale to M&G Real Estate announced in May 2016 and a third transaction has also recently progressed to detailed discussions with a prospective purchaser
·      Increasing number of land opportunities being appraised with some sites now the subject of more detailed negotiations
·      The Board remains confident in the longer term housing market in non-prime London and has not adjusted the Group's growth targets since the outcome of the EU vote
·      H1 2017 profits in line with expectations and lower than last year due only to the timing of development completions with a substantially higher proportion of profits expected in H2 2017
·      Interim dividend to increase in accordance with anticipated full year profit growth
·      Secured 95 per cent of the open market homes anticipated to complete in the year to 31 March 2017 and 87 per cent of the gross profit expected in the year
·      Expectations for the full year to 31 March 2017 and further into the future remain unchanged and on track to deliver significant growth over the next three years
 
 
 
 
Current trading
Telford Homes continues to hold a positive view of both the current and future housing market in non-prime areas of London due to the significant imbalance between the supply of homes and demand for somewhere to live.  This imbalance underpins the future prospects for the business and as a result the Board has not revised the Group's growth targets following the outcome of the EU vote. There is a housing crisis in London with many more homes needed and the Group expects to play an increasing role in delivering those homes.
 
The Group started the current financial year with a substantial forward sold position that has subsequently been enhanced to exceed £650 million of revenue to be recognised from the year to 31 March 2017 onwards.  As a result the existing development pipeline has been significantly de-risked putting the Group in a strong position. 
 
In terms of the current market environment the Group is pleased to report that it has experienced increased sales activity in respect of residual availability across a number of developments.  Since the start of September greater interest levels and more visitors to the central sales centre have resulted in an increased number of reservations.  Particularly pleasing is that this has included the sale of three of the remaining penthouses at Horizons, E14 where the average price is over £1 million and is therefore well in excess of our usual price point.  The average anticipated price of open market homes in the Group's future pipeline is £517,000.  
 
The Group's next significant launch will be City North in Finsbury Park, a joint development with The Business Design Centre in Islington, which is planned for November 2016.  This development is now underway and the Group recently announced the successful signing of a £110 million loan facility with LaSalle Residential Investment Fund, which will fund this exciting scheme of 355 homes, 140,000 square feet of commercial and leisure space and a new entrance to the underground station.  As with previous developments, the Group expects that the product and location will be attractive to a range of buyers both at the launch and thereafter.
 
PRS (Private Rented Sector) or 'build to rent' remains a significant focus for the Group following the sale of The Pavilions, N1 to a subsidiary of L&Q and Carmen Street, E14 to M&G Real Estate.  Following these two development sales Telford Homes has recently progressed to detailed discussions on a third transaction with a prospective purchaser.  There has been a noticeable increase in institutional interest in PRS investments which complements the Group's desire to extend its involvement in the sector and to benefit from stronger returns on equity and lower gearing as a result. 
 
Telford Homes has a strong and accelerated development pipeline as a result of the purchase of the regeneration business of United House in September 2015.  The Group has resources to add to that pipeline due to the £50 million equity placing in 2015 and has been able to take a selective approach to prospective acquisitions.  An increasing number of opportunities are being appraised with some sites now the subject of more detailed negotiations.   
 
Interim results and outlook
The Group's reported profits in any given period are driven by the number of open market completions achieved and there were far fewer of these in H1 2017 than H1 2016.  This is purely down to development timings which are all on track and in accordance with the original programmes but do not always fall equally across the year.  Completions of individual properties are proceeding exactly as planned with no unexpected delays. 
 
As a result of the weighting of completions across the year pre-tax profit for H1 2017 will be lower than last year but entirely in line with expectations.  The interim dividend is proposed to increase in line with the anticipated full year profit growth and will not be affected by weighting between the two half year periods.  To date Telford Homes has secured 95 per cent of the open market homes anticipated to complete in the year to 31 March 2017 and 87 per cent of the gross profit expected in the year.  The Board's expectations for the full year to 31 March 2017 and further into the future remain unchanged and the Group is on track to deliver significant growth in both output and profits over the next three years.
 
Jon Di-Stefano, Chief Executive of Telford Homes, commented:
"We have seen a robust market place in recent weeks, with encouraging sales activity and increasing interest from institutional investors.  We are very pleased with the progress of our move into delivering schemes for the 'build to rent' sector and I am delighted that we are progressing discussions on a third transaction to add to the sales already achieved to L&Q and M&G Real Estate."
 
"The Group has made strong progress in the last six months and remains positive about the long term prospects for the housing market in non-prime areas of London. The imbalance between the supply of homes and the need for somewhere to live is not diminishing and this underpins our plans to continue to grow Telford Homes over the next few years."
 
 
 
 
- Ends -
 

There is a bounce since yesterday on the housing stocks.
The reason for the weakness on TEF must be some on the know of a slow down on sales on the 1st half.......

...... As a result of the weighting of completions across the year pre-tax profit for H1 2017 will be lower than last year

your selective extraction omitted the very important but entirely in line with expectations.

Take your pick ....

12 Oct Peel Hunt 485.00 Buy
4 Oct Canaccord... 290.00 Hold

Don't be CYNIC "cynic"

read my post before and that is the reason why.

Take an "egg on the face" if you feel better.

Do not argue with me, cuz you will always lose.

Telford Homes at bargain basement prices
By Harriet Mann | Wed, 12th October 2016 - 14:08


London-based housebuilder Telford Homes (TEF) has seen a bounce in sales following the EU referendum in another sign that the UK economy is holding up despite doomsday predictions. Investors clearly have faith in the cyclical housing sector, chasing AIM-listed Telford's high-yielding shares north Wednesday.
"We have seen a robust marketplace in recent weeks, with encouraging sales activity and increasing interest from institutional investors," said chief executive Jon Di-Stefano in an optimistic half-year update.
Results so far are in line with expectations, and only lower than last year due to the timing of development completions. A "substantially higher" proportion of profits will be posted in the second half, said Di-Stefano, who has not adjusted Telford's growth targets since the Brexit vote.
Jumping 5% to 311p, Telford shares are up 22% from their post-referendum, two-year low of 254p. Its recovery has lagged housebuilding peers, however, and the shares are still about 40p below their pre-vote levels. Di-Stefano told Interactive Investor in June that the market often struggles to understand Telford.
Decades of undersupply underpins growth, as demand in non-prime London remains strong
But Peel Hunt analyst Gavin Jago, who upgraded his price target on Telford just three weeks before the referendum, still thinks they're incredibly cheap, predicting 56% upside.
"Given the strong forward sales, solid demand for its products and increasing PRS [Private Rented Sector] opportunities, in our view, the market is significantly undervaluing this growth," says Jago. "Together with a CY 2017 yield of 5.6% we remain very comfortable with our 'buy' recommendation and 485p target price."
Decades of chronic undersupply underpins growth forecasts, as demand for homes in the non-prime areas of London remains strong.
Since September, Telford has enjoyed higher reservation numbers, including the sale of the three remaining penthouses in its East London Horizons complex, where the average price is over £1 million.

"There is a housing crisis in London with many more homes needed and the group expects to play an increasing role in delivering those homes," the group said Wednesday.
Over £650 million of revenue has already been forward sold to be recognised this financial year, up from £640 million in June, so investors are reassured that the development pipeline has been derisked, improving visibility. The average price of the open market homes in the pipeline is £517,000. More detail will be given in November's interims.
PRS builds are still a large focus for Telford after the sale of The Pavilions, N1, to a subsidiary of L&Q and Carmer Sterete, E14, to a subsidiary of M&G Real Estate. Institutional investors are clearly keen to get a slice of the action - these deals lock in long-term rental income - and PRS developments also de-risk the business for Telford.
So far, the company has secured 95% of the open market homes to be completed in the year to 31 March 2017 and 87% of the gross profit.
Next on the cards is Telford's joint development with The Business Design Centre, City North in Finsbury Park. A £110 million loan from LaSalle Residential Investment Fund will finance the project to build 355 new homes, 140,000 square feet of commercial and leisure space and a new underground entrance.
Peel Hunt expects an increase in sales from £245 million to £291 million in the year to March 2017, with adjusted pre-tax profit up from 32.2 million to £33 million. Look for £44 million profit the year after. An estimated full-year dividend of 15.7p this time gives a prospective yield of 5%.

Not sure if they will be able to get the asking price for sky scrapers over Stratford. Watching them go up and as a cockney sparrow I would not want to live there now!!

There are no cockneys left there , don't worry the foreigners will buy them .

You may be right jimmy b.

As displaced cockney I do wonder who would want to live in a glorified tower block when they spent years trying to demolish that type of skyline in East London.

Will you be surprise if I say EPS ( earnings per share will be down this YEAR 2016)
Most of the peers have increased profits by 20 and 30%, so no wonder of the underperformance of the stock........

Well Profit will be up 3% Fcast
but consider that the number of shares will be up by 13.29%

That is the reason for lower EPS on the next results

Forecast for Year 2016
adjusted pre-tax profit up from 32,2 million to £33 million.

No of shares
2015 - 66,07M
2016 - 74,85M ( after a 13,88M placing ) some added on the 2015 results (5,7M )

ST of IC today - Institutional demand for PRS growing
Another positive is that Telford is currently in discussions with a prospective purchaser for the sale of its third private rented sector (PRS) development this year. The company has already offloaded around 300 homes in its pipeline with a development value of £130m to M&G Real Estate, and a subsidiary of L&Q, one of the UK's leading housing associations and one of London's largest residential developers. These deals reflect increasing institutional demand for high-quality, well-located developments to be 'built for rent'.
There is decent financial upside from PRS sales because assuming Telford achieves close to its target operating margin of 15 per cent, it will earn huge profits on the £130m of revenue generated from the two schemes. Profits will be recognised earlier because under contract accounting standards it is based on a percentage build basis rather than on legal completion of the schemes. Furthermore, Telford has no debt finance on its PRS developments, has recouped its land costs and is fully carried on funding, so will make a higher return on capital employed that on a normal housing development. Admittedly, it forsakes net margin to secure the sale of a complete development, but it’s good business as this mitigates risk.
Frankly, with Telford’s shares priced on 8.25 times earnings estimates, rated on a 5 per cent premium to end March 2017 book value estimates and offering a forward dividend yield of 5.4 per cent, investors are pricing in a sharp reversal of house prices at the more affordable end of the London market despite the strong supply-demand dynamics of the market segment Telford is targeting. And with analysts forecasting cumulative EPS of almost 140p over the next three financial years even in a flat London market, of which over 50p a share is earmarked for dividends, this progressive earnings profile is simply not being reflected in the current valuation.
Offering more than 30 per cent share price upside to my 370p target price, I continue to rate Telford’s shares a buy.

2 value stocks with a P/E below 8 - By Rupert Hargreaves | Fool.co.uk – Tue, Oct 18, 2016

Brexit has thrown up some incredible bargains in the small-cap market. While the plunging pound has sent the FTSE 100 to yearly highs, small-cap domestic-focused equities have suffered. In some cases, the sell-off of domestic equities has been so aggressive and relentless that groups of small-caps are now trading at mid-single-digit P/Es with high-single-digit dividend yields.

It's not clear why investors have dumped these equities at such a rapid rate. Yes, there's some concern about what will happen to the UK economy when the dust settles after Brexit. But a mid-single digit P/E suggests that the market believes these companies' earnings will fall by 50% or more, which seems excessive in many cases.
Telford Homes (LSE: TEF) and Utilitywise (LSE: UTW) are two such post-Brexit bargains.

Housing crash?
Year-to-date shares in Telford are down by 27.3%. It appears that analysts and investors worried about the company's exposure to the UK's housing market, specifically in London where Telford has a significant presence. However, Telford's management doesn't appear to be worried about the state of the market, and when analysing the firm the figures speak for themselves. Indeed, Telford's forward sales stand at £640m, which is 50% of the company's expected revenues over the next three years.

With revenues for the next three years locked up, Telford at least deserves to trade at a market average multiple, but this isn't the case.
Shares in the company currently trade at a forward P/E of 8.2 ( 297.50p ), falling to 6.2 next year and support a dividend yield of 5.3%. The group's net asset value per share was just under 250p at the end of March, so after recent declines, the shares are trading at a price-to-book value of 1.2.

A defensive sector
The utility sector is considered one of the market's most defensive. Unfortunately, it looks as if the market believes provider Utilitywise can't offer the same kind of defensive proposition as the rest of its industry.
Shares in Utilitywise have lost 23% of their value year-to-date and currently trade at an extremely attractive forward P/E of 7.1 and City analysts are expecting the company to report earnings growth of 25% this year and 8% for 2017.
That being said, Utilitywise is no stranger to controversy. The company has come under scrutiny in the past for its accounting, and some analysts are worried about the firm's exposure to small businesses, which are likely to suffer more than most in any economic downturn.

When it comes to the question of Utilitywise's accounting practices, it looks as if the concerns are unfounded. One way to quickly spot if a company is inflating profits is to look at cash flows, which are harder to manipulate. For the period ending 31 July, Utilitywise reported a cash inflow from operations of £12.4m, compared to net income of £18.4m. Working capital changes accounted for the majority of the difference in the figures. Put simply; the company is generating plenty of cash and it looks as if there's nothing to be worried about.

Looking for income?
If it's dividends you're after but you're worried about the outlook for Utilitywise and Telford why not check out this special report, which gives a rundown of what I believe is one of the hottest dividend stocks in London today.

rather a nice write-up for TEF i thought

MrM won't touch them i'm sure - or at least he was distinctly less than enthusiastic about the company just a few days back
to be fair to the boy, he likes stocks which he needs to hold for <20 days, but TEF is more of a longer term investment

C

just tell us the truth ...... is a stock that you lose a lot of money

it's a stock i hold in my sipp and yes it is showing a loss, but i am happy enough to hold it for the long term ..... i like its property portfolio; it has a good divi; it looks undervalued as the article points out

I still do not like the stock, as there is no growth on the stock at the moment, negative EPS ( less earnings than last year )

Most of the House builders are at below PE than TEF and growing

just cuz there is writing about TEF does not mean I will be interested is buying at this point.

And more good news for the sector today......

UK construction sector activity firms in third quarter

(ShareCast News) - UK construction workloads lifted slightly in the third quarter, though growth in London was depressed by Brexit uncertainty, according to a survey of the sector published on Thursday.

The Royal Institution of Chartered Surveyors (RICS) quarterly construction market survey found a balance of 19% of surveyors reported an increase in current construction workloads in the quarter, up from 17% in the preceding period.

Of all the subsectors, infrastructure was the most positive, with a balance of 17% reporting rising workloads.

Private housing saw the highest levels of growth compared to other construction sectors, with a balance of 27%.

The private commercial sector saw the workload balance dip marginally to 16% from 17%.

"What the figures mask, is the disparity between the kinds of properties that are being built," said Jeremy Blackburn, head of policy at the lobbying group.

"When the Communities Secretary publishes his Housing White Paper later this month, he must deliver a housing programme that benefits more than the just the fortunate few. We need to shift the rhetoric away from home ownership and encourage the building of affordable rental properties in the suburbs and our cities."

Eduardo Gorab at Capital Economics said it was worth bearing in mind that by being above zero, all of the main sectoral balances still point to rising construction activity.

"More encouragingly, the forward-looking aspects of the survey showed a more dramatic improvement. Indeed, rising to 49% from a three-year low of 23%, the future workloads balance rose above the survey average of 31%. Similarly, employment intentions and profit expectations also recovered much of Q2's losses," he added.

"Yet, at 35% and 22% in Q3, these balances are still lower than in Q1 when they stood at 41% and 38%."

He added that skill shortages are likely to continue to constrain the sector and that tighter future immigration controls may well exacerbate this problem.

i must confess there are shares i too do not like and will not buy - and they're doing very well - ie ASC and FXPO

The MAIL - By MYRA BUTTERWORTH and NICK ENOCH FOR MAILONLINE: , 21 October 2016

The best home you can build on a shoestring: Could this two-bed house that can be built for less than £50k be the answer to Britain's housing crisis?

Self Build on a Shoestring judges included Grand Design's Kevin McCloud
The low-cost 'Modulhus' starter home is priced from £49,600
It is a two bedroom home covering 66 sq m
The modules design means it can work as a standalone home, or be stacked to create a terrace or a block of flats

Most first-time buyers can only dream of buying a home for less than £50,000 - but it is possible if you're prepared to go 'modular'.
This involves selecting pre-fabricated, low-cost modules of various sizes which are then put together by skilled craftsmen.
The customer can then choose the interior design, giving an end-product which could be an office, hotel, school or house - and that includes starter homes.
The Modulhus, one such starter home, has now been crowned winner of an annual shoestring design competition.
The two-bedroom house covers 66sq m and costs from just £49,644 to build.

The 'Modulhus' - modular house - which has been crowned winner of an annual shoestring design contest has two bedrooms and costs less than £50,000 to build
Options inlcude a pitched roof module

The Modulhus can be bought as a finished product or as structure-only, allowing for a complete customisation of internal and external finishes
The timber homes, made from fully-finished factory parts, are built off-site - and eco-efficient features, such as solar thermal panels (which are used to help heat water) can be added.
And the customer can also choose the roof, be it bitumen, clay, concrete roof tiles or a tin cover.
The price of the project does not include the land that the houses are built on - something which substantially drives up the price of new homes.

Looking for a cheaper mortgage? Compare the best rates and get fee-free advice
However, easy and cheap to construct houses like the Modulhus are being touted as the way forward for new projects involving freeing up state-owned land at a low cost to get more homes built for the UK

The Modulhus - designed by architects Barton Willmore and EcoMotive - won first prize at the international Self Build on a Shoestring competition.
The judges, including TV presenters Kevin McCloud of Grand Designs, George Clarke of Amazing Spaces and Charlie Luxton of Homes by the Sea, praised the winner for its 'low-cost modules'.

TV presenter of Grand Designs Kevin McCloud was one of the judges of the Self Build on a Shoestring competition
Kevin McCloud said: 'Self-build and custom-build will be a significant part of our housebuilding mix in the future.
'That's a really exciting prospect. But for it to really take off we ought to be exploring new ways that people can build affordably and, for that matter, collectively, like they do across Europe.

'The Shoestring Competition is not just a quest to find brilliant new ideas, it's an important petri-dish for innovation in British housing, to find new ways to help get people on to the housing ladder and help develop new models of affordability.'
For self-build to really take off we ought to be exploring new ways that people can build affordably

The winning architects were presented with the £5,000 competition prize by Charlie Luxton at the Grand Designs Live exhibition at the NEC.
Mr Luxton said: 'The UK housing sector is far too focused with a few major builders producing the vast majority of our new homes.
'This small pool of supply has resulted in a lack of innovation, this competition seeks to redress this huge issue at the heart of our housing industry.
'The flexibility and adaptability of the Modulus gets to the core of why people want to self build - choice.

The modular design means it can work as a standalone home, or with several added together to create a terrace or a block of flats

'It also deals with ideas of scaleability and delivery that are key to affordability, in-line with the ambitions of this competition.'

Runners-up included projects called Half a House and The Self Build Guild - both could also be built for less than £50,000.
Former winners of the National Custom Self Build Association (NaCSBA) competition are now seeing their designs built.
They include the self-build 'Barnhaus', which was built around the idea of a farmer's hay barn and won the Self Build on a Shoestring competition in 2013.

One of this year's joint runners-up in the competition was a project called Half A House

The Self Build Guild was the other joint runner up in this year's self build on a shoestring competition

Former winners of same competition include the 'Barnhaus', based on a farmer's hay barn
The winner of the same 2015 competition was this project that could 'easily be assembled by two people'

The winner of the same 2015 competition was this project that could 'easily be assembled by two people'

Read more: http://www.dailymail.co.uk/property/article-3848174/Is-answer-Britain-s-housing-crisis-two-bedroom-home-built-50K.html#ixzz4NwTPYceY

Interims 30 Nov