Telford Homes Plc (TEF), a homebuilder focused on London, jumped after forecasting fiscal 2014 earnings will beat analyst estimates as overseas investors contribute to strong demand for property in the capital.
Telford climbed 7 percent, the biggest advance in a year. “The Group is now 100 percent sold in terms of the open market homes expected to legally complete in the year to 31 March 2014, over 70 percent sold for 2015 and over 55 percent for 2016,” the Waltham Cross, England-based company said in a statement.
London home prices are predicted to rise by an average of 9 percent a year for five years, according to a survey by the Royal Institution of Chartered Surveyors. Shore Capital Group, an adviser to Telford, raised its 2014 pretax earnings estimate for the homebuilder to 17 million pounds ($27 million) from 15 million pounds.
“For the first time for the company, a significant number of overseas sales were to Chinese investors and management believes China could become a substantial market for the company’s developments,” Shore Capital said in an e-mailed statement.
The shares rose 21.5 pence to 330.75 pence in London today, bringing the advance to 79 percent this year and giving the company a market value of 194.2 million pounds.
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