Company Trafalgar New Homes PLC
TIDM TRAF
Headline Half Yearly Report
Released 07:00 06-
Number 8638U07
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RNS Number : 8638U
Trafalgar New Homes PLC
06 December 2013
6 December 2013
TRAFALGAR NEW HOMES PLC
("Trafalgar" or the "Company")
INTERIM RESULTS
30.9% increase in turnover and move into profit
Trafalgar (AIM: TRAF), the AIM quoted property developer operating in southeast England, announces profitable half year results for the six months ended 30 September 2013.
HIGHLIGHTS:
· Turnover for the period rose 30.9% to £864,000 (H1 2012: £660,000) generating a profit before tax of £101,000 (H1 2012: loss £102,000) and an EPS of 0.05p (H1 2012: loss of 0.05p).
· Strong financial performance in the six months has been a resultant effect of the completion of the sale of the remaining apartments at the Company's Edenbridge site.
· Completion of 12-
· Construction of four sites in Kent expected to commence in early 2014.
· Company registered for government 'Help to Buy' funding scheme.
· Successful listing on AIM in July raising £280,000, before expenses, through the issue of 14,000,000 new Ordinary Shares at 2p per Ordinary Share in a placing.
Commenting, Chris Johnson, CEO of Trafalgar, said: "Today's results are particularly encouraging given historically the Company out-
Enquiries:
Trafalgar New Homes Plc
Christopher Johnson +44 (0)1732 700 000
Allenby Capital Ltd -
Jeremy Porter/James Reeve +44 (0)20 3328 5656
Yellow Jersey PR Limited
Dominic Barretto/Anna Legge +44 (0)7768 537 739
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. Combe Bank Homes was incorporated in 2006 and was acquired by ISDX quoted Trafalgar New Homes in a reverse takeover on 11 November 2011.
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. This enables the Company to tightly control its development and overhead costs.
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 £750,000 per unit, although larger projects are undertaken.
For further information visit www.trafalgar-
CHIEF EXECUTIVE'S REPORT
I am pleased to present the Company's interim results for the six months ended 30 September 2013, a period that has seen continued progress throughout the Company and a successful flotation on AIM.
Turnover for the period rose 30.9% to £864,000 (H1 2012: £660,000) generating a profit before tax of £101,000 (H1 2012: loss £102,000) and an EPS of 0.05p (H1 2012: loss of 0.05p).
Strong financial performance in the six months has been a resultant effect of the completion of the sale of the remaining apartments at the Company's Edenbridge site.
At the Company's Oakhurst Park Gardens, Hildenborough site in Kent, I am pleased to report that construction has been completed and the houses are now on the market and for sale. There has been considerable interest and the Board is confident that a large proportion of the 12 homes will sell in the short term contributing to a strong second half performance. The gross development value of the properties is around £7 million in aggregate, which could show a substantial increase in turnover for the year compared to 2013 as we aim to sell all the properties before the year end. Four of the houses are under offer and interest is high with prospective purchasers seeking to take advantage of the 'Help to Buy' government funding scheme for which the Company is registered.
Going forward, prices are being obtained from contractors to build out Trafalgar's four sites at Tunbridge Wells (six apartments),Ticehurst (two houses),Sheerness(six houses) and Chatham(three houses). The Board anticipates construction of these properties to commence in early 2014 with a view for sales to positively impact the financial year ending 31March2015.
At the Company's Staplehurst site in Kent, which is under option, we have submitted planning application for a development of 22 homes on part of the land and this first application was unexpectedly refused. We believed we had met all the criteria for a positive decision and we will therefore appeal the refusal in accordance with the advice given to us by our planning consultants. Once planning is granted we will aim to complete the purchase of the land and commence development to contribute to the year ending 31 March 2015. The balance of the site will then be the subject of a further planning application with a view to generating profits for the 2016 financial year.
The Board is encouraged by the returning strength of the housing market in Trafalgar's niche area of operations. We continue to seek out opportunities to increase our land supply for future developments and have the continued support of our bankers and lending institutions to enable the funding of such purchases.
As announced in August, the Company moved from ISDX to AIM with a view to increase awareness and maximise returns for shareholders. The Board looks forward to accelerated expansion and growth as a result, believing that AIM will help attract new investors and capital when required, to further the Company's growth strategy through land and corporate acquisitions.
C C Johnson
Chief Executive
5 December 2013
