With today's trading update promising that profit before tax for the half-year should 'more than double', it is perhaps unsurprising that shares in London-centric housebuilder Telford Homes (TEF) are up 2.3% at 429.5p.
Telford is of course one of the lucky housebuilders that is in pole position to capitalise on London's chronic shortage of affordable homes as the group remains focused on relatively affordable locations in non-prime inner London where the average price of an open market home is typically between £500 and £800 per square foot.
The group has also shown that strong organic growth is not the only string to its bow. On 21 September 2015 Telford reported that it had acquired the regeneration business of United House Developments. The developments that were acquired in this transaction are all in the group’s core area and have the potential to add some £500 million of revenue to the existing £1 billion development pipeline which represents an enhanced longer term strategic pipeline stretching over the next eight years.
Telford points out nevertheless that there are still not enough new homes being constructed and while this will undoubtedly underpin the housebuilder's growth plans going forward, little is being done by the incumbent government to address what is almost certainly an incipient housing crisis. However, until this doomsday scenario ensues, Telford like most of its peers, will make probably make hay while the sun shines.