Chairman’s Statement

On behalf of the Board, I present Trafalgar Property Group Plc (the Group), results for the year ended 31 March 2020 which includes two property sales and a car park space sale completed in the year. The overall result was disappointing, as can be seen in the attached Accounts and Strategic Report, although an improvement on the previous year’s loss. We are continuing to search for profitable sites for planning gains and development possibilities.

Financials

The year under review saw the Group turnover at £1,970,106 (2019: £2,128,189), with a loss after tax of £1,022,898 (2019: Loss £2,296,422), after taking into account exceptional items as detailed in note 20 to the accounts.

Management have performed a review of the assets and liabilities of the underlying subsidiaries which form the value of the anticipated profits on ongoing developments. In addition, the value of land options in TR+ have been re-assessed. At the time of approval of the financial statements there is no confirmed planning permission on these land options.

Due to the uncertainties and timing of developments it has been agreed by management not to include any future anticipated profits of developments in their assessment. Therefore, the net asset value of the underlying investments and inventory does not support the Group’s carrying value of investments in the subsidiaries.

Management have concluded that an impairment of the investments is prudent and that these will be written down to zero, resulting in an exceptional charge of £595,452 (2019: £1,559,319).

The cash on the balance sheet at the end of the year was £27,969 (2019: £32,800) and the Group continues to have sufficient bank facilities for all planned activities.

In July 2020 we completed a share issue raising £750,000 of cash, before expenses, which provides additional cash reserves for our planned activities.

Business Environment and Outlook

Our recent move into the assisted living sector has not proved to be a success so we are now concentrating on our core activity of property development for residential homes and apartments.

On 27 May, 2019 Chris Johnson and his son Alex Johnson stepped down from the Group Board, although they remain involved as Directors of subsidiaries. On the same day, Paul Treadaway was appointed as the new Group Managing Director which strengthens the Board with his particular expertise in the sector for assisted living developments as well as conventional property developments. This retains a good balance of complementary skills on the Board. We are currently progressing offers of finance alongside our planning applications so that we should be well placed to commence our developments as soon as planning permits.

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 also been delays to the obtaining of 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.

I would refer you to the Strategic Report that covers our activities in more detail.

James Dubois
Chairman
29th September 2020