Telford Homes pays £6m for Clifford Contracting

Telford Homes is paying £6.2m to buy Clifford Contracting.

The seller is Puma Venture Capital.

Clifford made an operating profit of £35,000 in the 12 months to 30 April 2009.

Telford is a residential property developer in East London, active in regeneration projects within public sector partnerships.

Clifford’s latest profit might be thin but it holds cash balances running to £6.3m.

As part of the deal, Telford is printing out 1.1m new shares. They will arrive on the open market on 30 June.

Telford’s directors said: “In addition to a contracting business, the acquisition provides a very flexible form of funding for failed completions and unsold properties with limited restrictions and covenants and more advantageous terms than would typically be the case with bank financing.”