Build-to-rent developer again cites building safety costs and problem job
Telford Homes has fallen to a 拢40m pre-tax loss after being hit by building safety costs and problems on its conversion of the Balfron Tower in east London.
Despite the heavy loss in the year ended 31 December 2023, the London-based build-to-rent builder鈥檚 performance was much stronger than the year prior, when it fell to a 拢194m pre-tax loss.
It put its 2023 loss down to 鈥渂uilding safety provisions, onerous build to rent contracts and the refurbishment of a listed residential tower鈥� 鈥� the same factors it had blamed the previous year.
The residential tower is understood to be the delayed refurbishment of the grade-II* listed Balfron Tower in east London. Telford is understood to have been hit by a subcontractor failure in its work on the Erno Goldfinger-designed, 1960s social housing block.
But Telford admitted that even without these exceptional losses, its pre-tax loss climbed to 拢24.6m compared with 拢18.4m.
The firm鈥檚 building safety related costs for the year stood at 拢3.3m, significantly down from the 拢143m recorded in 2022.
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The company added it had raised its remediation provision by 拢22m from 拢115m to 拢137m.
Revenue for the year, excluding the group鈥檚 share of joint ventures, was 拢165m, down from 拢296m.
Telford, which was established in 2000 and is owned by CBRE, employed 240 staff at the end of the financial year.
Its current business strategy involves building its reputation as a build-to-rent developer and broadening its geographic focus across London and surrounding commuter towns.
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