Telford Homes has posted record revenue of £354.3m but revealed profit before tax had dipped by 12.8% in its latest annual results.
The housebuilder reported a 12% increase in revenue to £354.3m, up from £316.2m in 2018, which was attributed to the company’s shift towards “lower-risk and less capital-intensive” build-to-rent developments.
While revenue grew, profit before tax fell by 12.8% to £40.1m from £46m, which was attributed to an “increased proportion of lower-margin BTR developments within total revenue”.
The housebuilder completed more than 300 BTR homes last year and 1,422 are in progress.
Its development pipeline stands at 4,900 homes, compared with 4,000 in 2018. They have a total expected gross development value of £1.59bn, compared with £1.31bn in 2018.
Telford Homes chief executive Jon Di-Stefano said: “Our business model is increasingly focused on build-to-rent housing and the reduced risk and lower capital requirements it brings.
“Despite some challenges, our performance in the year to 31 March 2019 represents a great achievement for Telford Homes with revenue at an all-time high due primarily to an increased proportion of build-to-rent contracts.”
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