TIDMTRAF
RNS Number : 4330X
Trafalgar Property Group PLC
29 April 2019
Prior to publication, the information contained within this
announcement was deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 ("MAR"). With the publication of this announcement,
this information is now considered to be in the public domain.
29 April 2019
TRAFALGAR PROPERTY GROUP PLC
("Trafalgar", the "Company" or "Group")
Year end trading update
Trafalgar (AIM: TRAF), the AIM quoted residential and assisted
living property developer, provides an update on its property and
development portfolio and trading for the financial year ended 31
March 2019.
During the financial year the Group has been engaged in
progressing plans for the development of assisted living schemes
and completing the development and sales of the four sites under
ownership in Kent, as follows:
On Saxons, Speldhurst, a substantial detached house, the new
financial year has brought some positive news as a sale has now
been agreed for GBP1.6m and as this purchaser does not need to sell
a property, the transaction is expected to proceed with
expedition.
The property at Burnside Court, Tunbridge Wells that was under
offer in December 2018 was sold, leaving the remaining three units
(flats 2, 3 and 5) to be sold. Regrettably, no offers have been
forthcoming despite the fact that prices were reduced and multiple
sales agents used.
Negotiations are in hand for the sale of these three properties
together with the one remaining detached house at Vines Lane,
Hildenborough, to property investors, one of whom is Chris Johnson,
the CEO of the Company. No binding agreement has been entered into.
As is the Board's practice, an independent valuation of the
properties will be completed before any transaction proceeds. A
further announcement will be made in due course.
At Wellesley Road, Sheerness, rapid progress is now being made
on the construction side with a new contractor following the sad
death of the previous builder. The completion date of the six
houses is now anticipated to be July 2019.
On 21 December 2018 the Company announced plans to seek to raise
funds through a bond issue. To date this initiative has not
delivered investment into the Company but remains open for the time
being.
Draft figures for the financial year ended 31 March 2019 show a
cash position at the year end of GBP12,000 and as set out below and
above, the Board is confident of significant cash receipts from its
property investments in this first quarter and the rest of the
financial year to 31 March 2020.
Draft figures for the year to 31 March 2019 indicate a loss
before and after tax in the region of GBP500,000 on gross revenue
of approximately GBP2.1 million. We expect this position to improve
substantially in the current trading year for the reasons
below.
The Group has recently received planning permission on a small
site in Ewell, Surrey and has accepted an offer to buy its interest
for an immediate profit of approximately GBP300,000 rather than to
build-out the development. This should be received in the first
quarter.
The Group also has the potential benefits of selling other sites
that it holds under option for which the Group is currently
applying for planning permission and the Directors are confident
that such sales would be at a profit and generate attractive
cashflow into the Group.
In Trafalgar Retirement+, as announced last week the Group has
exchanged contracts on the purchase of an assisted living
development in Camberley, which is an exciting project and
estimated by the Group to generate a gross development value of
GBP15m to GBP21m depending on how much the Group can improve on the
existing planning permission.
The Group retains an option over a site in Staplehurst, Kent,
where a formal planning application has been lodged and is being
processed. The application is for the consent to develop the site
for an assisted living retirement scheme with 80 cottages and
apartments, together with communal 'hub' and ancillary
facilities.
The Group continues to appraise and negotiate on a number of
other development site opportunities, primarily for assisted living
development schemes.
The Company expects to announce its audited financial results
for the year ended 31 March 2019 in the third quarter of 2019.
Commenting on the trading statement, James Dubois, Chairman,
said: "These are exciting times for Trafalgar as the company
re-positions itself to take advantage of the significant
opportunities open to it."
Enquiries:
Trafalgar Property Group plc +44 (0) 7899 995
James Dubois 421
Allenby Capital Ltd - AIM Nominated Adviser
and Broker +44 (0) 20 3328
Jeremy Porter/James Reeve/Liz Kirchner 5656
Yellow Jersey PR Limited +44 (0) 7747 788
Charles Goodwin 221
Notes to Editors:
Trafalgar Property Group plc
Trafalgar Property Group plc is the holding company of two
operating companies, Trafalgar Homes Limited, an established
residential property developer operating in the southeast of
England, and Trafalgar Retirement+ Limited, which is focussed on
assisted living and extra care developments for the elderly. The
founders of both subsidiaries have long track records in their
respective specialist property disciplines.
The Company's focus is on the select acquisition of land for
residential and assisted living / extra care property development.
The Company outsources all development activities, for example the
obtaining of planning permission, design and construction, and uses
fixed price build contracts, enabling it to tightly control its
development and overhead costs.
Trafalgar Retirement+ (formerly named Beaufort Homes, a
retirement living property specialist developer, prior to its
acquisition by Trafalgar in March 2018) is seeking to capitalise on
the burgeoning demand for retirement properties within the South
East of England and particularly vis-a-vis the assisted living
segment.
For further information visit www.trafalgarproperty.group
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END
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