The London housing specialist said there was a welter of opportunities in non-prime areas of London, with prices typically between £500 and £900 per square foot, and in development of private rented schemes.
Jon Di-Stefano, chief executive of Telford Homes, said the multi-storey home developer was set for strong growth with cash reserves to build out a record development pipeline representing over £1.5bn of future revenue.
He described 2015 as an exceptional year, reporting a 28% jump in pre-tax profits to £32m from revenue ahead 42% at £246m.
“The group has been successful in forward selling homes through traditional channels and has added to this by contracting its first significant sales in the private rented sector,” he said.
“The 2015 equity placing for £50m, together with substantial headroom in the group’s £180m revolving credit facility, means Telford Homes is in a strong position to continue its growth.”
Di-Stefano added: “There have been some recent and justifiable concerns over prime residential properties in London but this is a different market to that served by Telford Homes.
“The group is focused on desirable non-prime locations in London at a price point that continues to see strong demand.
“There is an ongoing housing crisis and a clear imbalance between the supply of homes and the needs of a growing population.”
He said: “Telford Homes is building homes for Londoners in a market where demand continues to significantly outstrip supply, and the Board believes that this undeniable structural factor will underpin the Group’s future growth.”
Di-Stefano said there was an opportunity to deliver even more homes to meet growing demand and said Telford Homes had enhanced its longer term growth expectations with pre-tax profit forecast to increase over the next three years and to exceed £50m in the year to 31 March 2019.