TIDMTRAF
RNS Number : 1472I
Trafalgar Property Group PLC
10 December 2020
10 December 2020
TRAFALGAR PROPERTY GROUP PLC
("Trafalgar", the "Company" or "Group")
Interim Results
for the six months ended 30 September 2020
Trafalgar (AIM: TRAF), the AIM quoted residential property
developer operating in southeast England, announces its interim
results for the six months ended 30 September 2020 (the
"Period").
Key financials:
-- Turnover for the Period was GBP1,311,150, (H1 2019: GBP1,254,000);
-- Gross profit of GBP302,596, (H1 2019: gross loss GBP102,000),
giving a pre-tax profit of GBP16,699 after overheads (H1 2019:
pre-tax loss: GBP528,000);
-- EPS of 0.00p (H1 2019: (0.11p)); and
-- Cash in bank at period end was GBP405,813 (H1 2019:
GBP27,780); at 9 December 2020 cash at bank was GBP541,667.
James Dubois, Non-Executive Chairman of Trafalgar, said: 'Your
Board is delighted that Trafalgar is today able to report the
Company's first period of profitability since 2013. Set against a
period of unprecedented volatility and uncertainty in the property
sector resulting from the global Covid-19 pandemic, this is a truly
commendable performance. With a much stronger Balance Sheet
following our June 2020 fund raise and debt conversion, the Company
is now able to look forward to the immediate future with a degree
of optimism and confidence not felt for a number of years. The
board has today sent a circular to shareholders convening an EGM to
authorise a share consolidation on a 1 for 10 basis"
Copies of the interim report will be available later today on
the Company's website, www.trafalgarproperty.group
Enquiries:
Trafalgar Property Group Plc
James Dubois +44 (0) 1732 700 000
Spark Advisory Partners Ltd - AIM Nominated
Adviser
Matt Davis/James Keeshan +44 (0) 20 3368 3550
Peterhouse Capital Limited - Broker
Duncan Vasey/Lucy Williams +44(0)20 7409 0930
Notes to Editors:
Trafalgar Property Group Plc is the holding company of Trafalgar
New Homes Limited and Trafalgar Retirement+ Limited, residential
property developers operating in the southeast of England. The
founders have a long track record of developing new and refurbished
homes, principally in Kent and Surrey.
The Company's focus is on the select acquisition of land for
residential 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.
For further information visit www.trafalgarproperty.group
TRAFALGAR PROPERTY GROUP PLC
INTERIM REPORT FOR THE SIX MONTHSED 30 SEPTEMBER 2020
CHIEF EXECUTIVE'S REPORT
I present the Company's Interim Results for the six month period
to 30(th) September 2020. Revenue for the period was GBP 1,311,150
and cost of sales was GBP 1,008,554, giving a gross profit for the
period of GBP302,596.
Other income amounted to GBP 28,717 being government grants and
furlough receipts. Mortgage and private loan interest was paid
during the period of GBP 68,985 with a further GBP8,263 of loan
note equity interest being accrued in the period. The result of the
above is a profit before taxation for the period of GBP 16,699.
The directors have considered relevant information, including
the annual budget, forecast future cash flows and the impact of
subsequent events in making their assessment. The COVID-19 pandemic
and the ensuing economic shutdown has impacted the company's
operations. In response to the COVID-19 pandemic, the directors
have performed a robust analysis of forecast future cash flows
taking into account the potential impact on the business of
possible future scenarios arising from the impact of COVID-19. This
analysis also considers the effectiveness of available measures to
assist in mitigating the impact.
Based on these assessments and having regard to resources
available to the entity, the directors have concluded that they can
continue to adopt the going concern basis in preparing the
financial statements.
The effects of the COVID-19 pandemic have affected our business
since March as sales of completed units have been delayed by some
months. Fortunately, we had completed the construction phase of
these units although there have been delays in obtaining planning
permission for other potential new sites. Like most businesses, we
are aware of our need to conduct ourselves carefully to preserve
the health of our staff and customers, and we have limited our
overhead expenditure wherever possible.
During the 6 months to 30 September 2020 the Group sold one unit
at the Sheerness site and two land options which culminated in
sales of GBP 1,275,000. During October 2020 two further units at
Sheerness have completed with two of the remaining three units
under offer. We are also awaiting the results of planning
applications for two sites in Surrey although the planning process
has been negatively impacted by the effects of the pandemic.
Paul Treadaway
Chief Executive
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2020
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
(Unaudited) (Unaudited) (Audited)
Restated
Note 2020 2019 2020
GBP'000 GBP'000 GBP'000
Revenue 1,311 1,254 1,970
Cost of sales (1,009) (1,356) (1,816)
Gross profit/(loss) 302 (102) 154
Administrative expenses (237 ) (421 ) (541)
Underlying operating profit/(loss) 65 (523) (387)
Other interest receivable and other
income 29 - -
Exceptional items - - (596)
Interest payable and similar charges (77) (5) (40)
Profit/(loss) before taxation 17 (528) (1,023)
Tax payable on profit on ordinary 4 - - -
activities
Profit/(loss) after taxation for
the period 17 (528) (1,023)
Other comprehensive income
Total comprehensive profit/(loss)
for the period 17 (528) (1,023)
Profit/(loss) attributable to:
Equity holders of the parent 17 (528) (1,023)
Total comprehensive profit/(loss)
for the period attributable to:
Equity holders of the parent 17 (528) (1,023)
PROFIT/(LOSS) PER ORDINARY SHARE;
Basic/Diluted 5 0.00p (0.11)p (0.21)p
All results in the current and preceding financial period derive
from continuing operations.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2020
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September 30 September 31 March
(Unaudited) (Unaudited) (Audited)
Note 2020 2019 2020
GBP'000 GBP'000 GBP'000
Non-current assets
Tangible fixed assets 2 1 1
Investment property 1,975 - 1,975
1,977 1 1,976
Current assets
Inventory 989 4,928 1,213
Trade and other receivables 50 62 42
Cash at bank and in hand 406 28 28
1,445 5,018 1,283
Total assets 3,422 5,019 3,259
EQUITIES AND LIABILITIES
Current liabilities
Trade and other payables 498 463 549
Borrowings 374 2,535 555
872 2,998 1,104
Non-current liabilities
Borrowings 5,167 4,947 5,576
Total liabilities 6,039 7,945 6,680
Equity attributable to equity
holders of the company
Called up share capital 6 2,727 2,632 2,633
Share premium account 3,250 2,661 2,661
Loan note equity 6 104 - -
Reverse acquisition reserve (2,818) (2,818) (2,818)
Profit and loss account (5,880) (5,401) (5,897)
Total Equity (2,617) (2,926) (3,421)
Total Equity and Liabilities 3,422 5,019 3,259
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2020
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Loan Reverse Retained Total
capital premium Note equity acquisition profits equity
Reserve reserve /(losses)
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2020 2,633 2,661 - (2,818) (5,897) (3,421)
Profit for period - - - - 17 17
Other comprehensive - - - - - -
income for the period
Total comprehensive
income for the period - - - - 17 17
Issue of shares 94 656 - - - 750
Share issue costs - (67) - - - (67)
Loan notes issue 104 104
At 30 September 2020 2,727 3,250 104 (2,818) (5,880) (2,617)
For the purpose of preparing the consolidated financial
statement of the Group, the share capital represents the nominal
value of the issued share capital of 0.01p per share. Share premium
represents the excess over nominal value of the fair value
consideration received for equity shares net of expenses of the
share issue.
The reverse acquisition reserve related to the reverse
acquisition between Trafalgar Property Group plc and Trafalgar New
Homes Limited on 11 November 2011.
On 14th July 2020, 937,500,000 additional shares were issued
being ordinary 0.01p shares and 0.07p share premium for a gross
subscription of GBP 750,000 before costs of GBP 66,863 further
details are provided in Note 6.
Loan note equity further details are provided in Note 6.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2020
CONSOLIDATED STATEMENT OF CASH FLOWS
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
(Unaudited) (Unaudited) (Audited)
2020 2019 2020
GBP'000 GBP'000 GBP'000
Cash flow from operating activities
Operating profit/(loss) 17 (528) (1,023)
Depreciation charges - - 1
(Increase)/decrease in stocks 224 (447) 1,304
(Increase)/decrease in debtors (8) 30 50
(Decrease)/Increase in creditors (51) (38) 107
Interest paid 69 5 118
Net cash inflow/(outflow) from operating
activities 251 (978) 557
Investing activities
Purchase of tangible fixed assets (1) - (1)
Net cash used in investing activities (1) - (1)
Taxation - - -
Financing activities
Issue of shares
Share issue costs 750 250 213
(67) (37) -
New loan borrowings 50 707 1,479
Repaid loan borrowings (182) - (2,502)
Related party borrowings (274) 59 778
Repayment other borrowings (80) - (400)
Interest paid (69) (5) (128)
Net cash flow from financing 128 974 (560)
Increase/(Decrease) in cash and
cash equivalents in the period 378 (4) (4)
Cash and cash equivalents at the
beginning of the year 28 32 32
Cash and cash equivalents at the
end of the period 406 28 28
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2020
NOTES TO THE FINANCIAL INFORMATION
1. GENERAL INFORMATION
This financial information is for Trafalgar Property Group Plc
("the Company") and its subsidiary undertakings. The Company is
incorporated in England and Wales.
2. BASIS OF PREPARATION
The interim consolidated financial information has been prepared
with regard to International Financial Reporting Standards (IFRS)
and interpretations adopted by the European Union and as applied in
accordance with the provisions of the Companies Act 2006. The
interim financial information incorporates the results for the
group for the six month period from 1 April 2020 to 30 September
2020. The results for the year ended 31 March 2020 have been
extracted from the statutory financial statements for the Company
for the year ended 31 March 2020. The financial information set out
in these interim consolidated financial information does not
constitute statutory accounts as defined in S434 of the Companies
Act 2006. They do not include all of the information required for
full annual financial statements, and should be read in conjunction
with the consolidated financial statements of the Group for the
year ended 31 March 2020, which contained an unqualified audit
report and have been filed with the Registrar of Companies. They
did not contain statements under S498 of the Companies Act
2006.
The same accounting policies, presentation and methods of
computation have been followed in these unaudited interim financial
statements as those which were applied in the preparation of the
group's annual financial statements for the year ended 31 March
2020.
The interim financial information for the comparative six month
period ended 30 September 2019 has been restated. This was to
address the incorrect recognition of intercompany sales and cost of
sales of GBP1,075,000 in the consolidated financial information. In
addition, rental income has now been presented as part of the
principal activity of the Group, and is therefore shown in revenue.
The impact of these items is a decrease in turnover for the six
month period ended 30 September 2019 of GBP1,032,000, along with a
decrease in cost of sales of GBP1,075,000 and a decrease in other
interest receivable and similar income of GBP43,000. There was no
impact on the Loss after taxation for the period and no impact on
the Consolidated Statement of financial position.
The interim consolidated financial information incorporates the
financial statements of Trafalgar Property Group Plc and its
subsidiaries.
The interim financial information for the six months ended 30
September 2020 was approved by the directors on 9 December
2020.
3. SEGMENTAL REPORTING
For the purpose of IFRS 8, the chief operating decision maker
("CODM") takes the form of the Board of Directors. The Directors'
opinion of the business of the Group is that the principal activity
of the Group was property development and there is considered to be
one reportable segment, that of property development carried on in
the UK. The internal and external reporting is on a consolidated
basis with transactions between group companies eliminated on
consolidation. Therefore the financial information of the single
segment is the same as that set out in the consolidated statement
of comprehensive income, the consolidate statement of changes in
equity, the consolidated statement of financial position and
cash-flows.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2020
NOTES TO THE FINANCIAL INFORMATION
4. TAXATION
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
(Unaudited) (Unaudited) (Audited)
2020 2019 2020
GBP'000 GBP'000 GBP'000
Current tax - - -
Tax charge/(credit) - - -
Profit/(loss) on ordinary activities
before tax 17 (528) (1,023)
Based on profit for the period:
Tax at 20% - - -
Effect of:
Losses (not utilised)/utilized - - -
Tax charge for the period - - -
No tax provision has been made on account of brought forward
losses.
5. PROFIT/(LOSS) PER ORDINARY SHARE
The calculation of profit/ (loss) per ordinary share is based on
the following
(losses) and number of shares:
6 month 6 month Year
period ended period ended Ended
30 September 30 September 31 March
(Unaudited) (Unaudited) (Audited)
2020 2019 2020
GBP'000 GBP'000 GBP'000
Profit/(loss) for the period 17 (528) (1,023)
Weighted average number of shares
for basic profit/(loss) per share 1,081,519,705 487,690,380 487,690,380
Weighted average number of shares
for diluted profit/(loss) per share 1,081,519,705 487,690,380 487,690,380
PROFIT/(LOSS) PER ORDINARY SHARE;
Basic 0.00p (0.11)p (0.21)p
Diluted 0.00p (0.11)p (0.21)p
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHS ENDED 30 SEPTEMBER 2020
NOTES TO THE FINANCIAL INFORMATION
6. SHARE CAPITAL
Authorised Share Capital
30 September 31 March
2020 2020
Number Number
Ordinary shares of 0.1p
each
Ordinary shares of 0.01p
each - 487,690,380
1,425,190,380 -
Deferred shares of 0.9p
each 287,144,228 238,375,190
1,712,334,608 726,065,570
Issued, allotted and
fully paid
Authorised Share Capital 30 September 31 March
2020 2020
GBP'000 GBP'000
Called up share capital 2,727 2,633
Share premium 3,250 2,661
Loan notes equity reserve 104 -
On 13(th) July 2020, the company undertook a sub-division of its
ordinary shares, which sub-divided the 487,690,380 0.1p Ordinary
Shares into 487,690,380 0.01p Ordinary shares and 487,690,380 0.09p
Deferred shares. Subsequently, the 0.09p Deferred shares were
consolidated with the 0.9p Deferred shares to create 287,144,228
0.9p Deferred shares.
On 14th July 2020, 937,500,000 additional shares were issued
being ordinary 0.01p shares and 0.07p share premium for a gross
subscription of GBP 750,000 before costs of GBP 66,863.
In addition, on 14 July 2020 warrants to subscribe for ordinary
shares of 0.01p were granted as follows:
Subscribers to the placing effected in July 2020 were granted
warrants to subscribe for up to 937,500,000 shares for a period of
two years, exercisable at 0.2p per share;
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHS ENDED 30 SEPTEMBER 2020
NOTES TO THE FINANCIAL INFORMATION
Peterhouse Capital Limited was granted warrants to subscribe for
shares equivalent up to 3% of the issued ordinary share capital for
a period of two years, exercisable at 0.08p per share.
In relation to the warrants granted to Peterhouse Capital
Limited, these fall under the requirements of IAS 39 Financial
Instruments and as such are accounted for at fair value through
profit or loss. At the grant date of these warrants these are
valued using a Black Scholes model to determine the intrinsic value
of the warrant and a liability is recognised for this amount with a
corresponding expense through the income statement. The Directors'
have concluded that the intrinsic value of the warrant as at 30
September 2020 is not material to the interim results and
subsequent movements in the share price have decreased this value
further. As such no accounting entries have been made to these
interim results.
Further on 14 July 2020 GBP 600,000 of convertible loan notes
were issued to Mr C C Johnson as part of arrangements to reorganise
loans between him and the Group. The notes are convertible into
300,000,000 ordinary shares at 0.2p per share for a period of two
years. On conversion, warrants to subscribe for up to 300,000,000
ordinary shares will be granted to Mr C C Johnson exercisable for a
period of two years from the date of grant at 0.2p per share.
The convertible loan notes have been accounted for as having
both a debt and an equity element. This results in the creation of
a loan note reserve at the point of issue. This loan note reserve
is the difference between the loan note value received by the
company of GBP600,000 and the fair value of a debt only instrument
with a 10% imputed interest rate and a final settlement figure of
GBP600,000 in July 2022. This 10% imputed interest rate is
managements' best estimate as to the interest rate that would be
expected from the market for an unsecured loan of GBP600,000
without a conversion element.
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