CHAIRMAN’S STATEMENT

The attached Report and Accounts for the Group for the year ended 31 March 2014 are very disappointing.

Business Environment

Trafalgar New Homes continues to specialise in small developments in Kent, Surrey, Sussex and the M25 ring south of London.  The Board believes that this strategy positions the Group in a niche market place, between local builders and developers and larger house building companies in the high demand area of the South East.

As a Board, we are optimistic about the future prospects of the residential property market as activity has started to increase which we believe will benefit the Group over the coming year.  Various campaigns by the Government, as well as an overall improvement in the residential property market are encouraging.

However, we have experienced significant delays and cost over-runs during this past year which has resulted in a loss for the year.  Full details are in the Operations Review in the Directors’ Report.

Financials

The period under review saw Group turnover at £3,368,500 (2013: £2,205,786), with a loss before tax of £305,049 (2013: Profit £617,976). This loss is after providing for the AIM listing costs of £250,653.  The underlying loss for the year was £205,843 (2013: Profit £559,732).

Land has been acquired to enable our development programme to continue profitably for 2015 and 2016.

Outlook

We have worked hard to put Trafalgar New Homes in a strong position as we aim to take advantage of an improvement in the sector.  

Following our move from ISDX to AIM on 16 July 2013 we have raised a further £200,000 with a new share issue in June 2014.

I would like to take this opportunity to thank the staff and Board on their achievements, which have now laid the foundation for substantial future growth of Trafalgar New Homes.  We have established a strong team, which is essential for our continued growth and I look forward to working together over the next year.

James Dubois

Chairman

27 August 2014