Trafalgar New Homes : Unaudited Interim results to 30 September 2016

RNS Number : 5727Q

Trafalgar New Homes PLC

30 November 2016

30 November 2016

TRAFALGAR NEW HOMES PLC

('Trafalgar', the 'Company' or 'Group')

Interim Results

for the six months ended 30 September 2016

Trafalgar (AIM: TRAF), the AIM quoted residential property developer operating in southeast England, announces its interim results for the six months ended 30 September 2016 (the 'Period').

Highlights:

· Turnover for the Period was £30,000 (H1 2015: £531,000) reflecting the sale of three car park spaces at the Borough Green site;

· Gross loss of £3,000 for the Period, giving a pre-tax loss of £132,000 after overheads (H1 2015: £168,000 loss);

· EPS of (0.05p) (H1 2015: (0.07p)); and

· Cash in bank at Period end was £167,107 (2015: £200,149)

Commenting on the results, Chris Johnson, CEO, said:

'The loss for the period reflects the six-month overhead charge, with turnover reflecting the sale of three car park spaces on the Borough Green development.

The Company has continued with its development of the five sites in Kent at: Hildenborough (two detached houses); Burnside, Tunbridge Wells (six apartments); Speldhurst, Tunbridge Wells (one large detached house); Edenbridge (three terraced houses); and Sheerness (six terraced houses).

The sites at Burnside, Tunbridge Wells, Hildenborough and Edenbridge are nearing completion, which is expected in early 2017.'

Copies of the interim report will be available shortly on the Company's website, www.trafalgar-new-homes.co.uk.

Enquiries:

Trafalgar New Homes Plc

Christopher Johnson

[phone]

Allenby Capital Ltd - Nominated Adviser and Broker

Jeremy Porter/James Reeve

[phone]

Yellow Jersey PR Limited

Dominic Barretto/Alistair de Kare-Silver

[phone]

Notes to Editors:

Trafalgar New Homes is the holding company of Combe Bank Homes, a successful residential property developer operating in the southeast of England. The founders of Combe Bank Homes have a long track record of developing new and refurbished homes, principally in Kent.

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.

Construction work is ongoing on all of the sites owned by the company with the work at Hildenborough, Burnside, Tunbridge Wells and Edenbridge due to be completed in early 2017 with completion of the Speldhurst and Sheerness sites in the summer of 2017.

It is anticipated that the developments will contribute to turnover for the financial years ending 31 March 2017 and 31 March 2018. As a result of the change in accounting policy revenue is not recognised until completion of sale (previously on exchange of contracts).

The Company focuses on the regions of Kent, Surrey, Sussex and the M25 ring south of London and targets development sites of up to 20 homes, with sales prices typically ranging from £100,000 to £1,000,000 per unit, although larger projects are undertaken.

For further information visit www.trafalgar-new-homes.co.uk.

CHIEF EXECUTIVE'S REPORT

I am pleased to present the Company's Interim Results for the six-month period ended 30 September 2016.

Turnover for the period fell to £30,000 (H1 2015: £531,000) reflecting the disposal of three car park spaces that were retained on the Borough Green site following its successful sale in the previous year

A small gross loss of £3,000 resulted in a pre-tax loss of £132,000 after overheads (H1 2015: loss £168,000) and earnings per share (EPS) of (0.05p) (H1 2015: (0.07p)).

Cash in bank at 30 September 2016 was £167,107.

The loss recorded for the period was as a result of there being little turnover and no profit for the period following the application of the Company's overheads for the six months.

Despite the lack of turnover, the Company expanded its operation during the period by continuing with the development of the three sites at Edenbridge, Hildenborough and Burnside, Tunbridge Wells, all of which are now on course for completion in early 2017. Development work commenced in the year at Speldhurst, Tunbridge Wells and Sheerness which are due for completion in the summer of 2017. Planning permission is still awaited on the site at Staplehurst, Kent.

For the financial year ending 31 March 2017, the Company anticipates turnover and related unit profit from any sales of the completed units at Burnside, Tunbridge Wells, Hildenborough and Edenbridge. The sales of any unsold units will contribute to the turnover and profitability for the year ending 31 March 2018, together with sales at Speldhurst, Tunbridge Wells and Sheerness.

In addition, the Company is negotiating the purchase of other sites in its chosen area of operation, which, if successful, are planned to contribute to revenue in 2018.

On the strategic development site at Staplehurst, the Company, following advice from its planning consultants, continues to seek planning permission and will be submitting a further planning application in the near future.

Aside from its development activities, the Company continues to look for corporate opportunities to grow the Company and will progress them if considered viable.

The Board believes the Company is now entering a growth phase, through land acquisition and development, whilst also considering possible corporate acquisitions.

C C Johnson

Chief Executive

30 November 2016

For the Consolidated Unaudited Imterim Results for the six months ended 30 September 2016,

please click here(downloads as a PDF file).

This information is provided by RNS

The company news service from the London Stock Exchange

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