Chairman's Statement

On behalf of the Board, I present herewith Trafalgar New Homes' results for the year ended 31 March 2017 which show that no house sales were recorded in the year. In previous years we have sold properties off plan or recorded sales prior to legal completion but for the last three years we only record sales on legal completion rather than on exchange. We have therefore concentrated on constructing the properties with a view to marketing them in the following trading year. The Board remains confident that with our current level of construction activity that the Company is well placed to deliver significantly improved results for future trading years.

We will continue to explore the potential for acquiring new sites that should produce increased turnover and a significant improvement in the future profit levels.

Financials

The year under review saw Group turnover at £30,000 (2016: £2,235,000), with a loss after tax of £298,397 (2016: Profit £204,877). The cash on the balance sheet at the end of the year was £100,808 (2016: £278,406) and the Group continues to have sufficient capital for all planned activities.

Business Environment and Outlook

Following the Brexit vote, the housing sector has seen patchy changes in demand depending on geographical area and price levels. However, the property price levels at which the Company operates have been largely unaffected so the Board does not consider this to be a major risk. We are currently marketing our completed units and continue with our construction programme.

While accepting that results to date have been disappointing, we feel that we are now in a strong position to deliver on sales and profits. In the meantime, we have been continuing to investigate new opportunities for developments and our site at Staplehurst in Kent is a prime example of this.

The Group remains confident about its prospects. Trafalgar New Homes is in a stronger position now than ever, and has secured several banking facilities to fund its development pipeline. The Executive Directors collectively have many years of residential development experience, which enables the Group to negotiate land and property purchases and construction contracts efficiently and quickly. This, in turn, enables the Group to adapt to changing market conditions and exploit opportunities.

As can be seen in Chris Johnson's Strategic Report, we believe the outlook for the Company is promising.

James Dubois

Chairman
6 September 2017