RNS Number : 5511X

Trafalgar Property Group PLC

19 December 2019

19th December 2019

TRAFALGAR PROPERTY GROUP PLC ("Trafalgar", the "Company" or "Group")

Interim Results

for the six months ended 30 September 2019

Trafalgar (AIM: TRAF), the AIM quoted residential property developer operating in southeast England, announces its interim results for the six months ended 30 September 2019 (the "Period").

Key financials:

  • Turnover for the Period was £2,286,000 (H1 2018: £ 1,780,000);
  • Gross loss of £145,000, giving a pre-tax loss of £528,000 after overheads (H1 2018: nil, pre-tax loss: £224,000);
  • EPS of (0.11p) (H1 2018: (0.05p)); and
  • Cash in bank at period end was £27,780 (2018: £16,178); as at 18 December 2019 cash in bank was £14,000.

Copies of the interim report will be available later today on the Company's website, www.trafalgarproperty.group

Enquiries:

Trafalgar Property Group Plc

+44 (0) 1732 700 000

Christopher Johnson

Spark Advisory Partners Ltd -AIM Nominated

+44 (0) 20 3368 3550

Adviser and Broker

Matt Davis

Notes to Editors:

Trafalgar Property Group Plc is the holding company of Trafalgar New Homes Limited, a residential property developer operating in the southeast of England and Trafalgar Retirement + Limited, a property developer in the assisted living and extra care for the elderly sector. The founders 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.

For further information visit www.trafalgarproperty.group

CHIEF EXECUTIVE'S REPORT

I present the Company's Interim Results for the six month period to 30th September 2019. Revenue for the period was £ 2,286,000 and costs of sales was £ 2,431,220, giving a gross loss for the period of £145,220.

Other income amounted to £ 43,131. Interest paid was £ 5,319 and administrative expenses for the period amounted to£ 420,636 (2018: £307,000). The increase in general administration expenses related to the additional costs incurred following the acquisition of Beaufort Homes Limited now known as Trafalgar Retirement + Limited (Traf +) which took place during the previous 2018 financial year and the writing off in the current period of costs incurred on sites inherited where options failed to materialise.

The result of the above is an operating loss for the period of £ 528,045. This includes a loss of £ 324,000 relating to the abortive Camberley acquisition.

During the period due to the lack of activity in the market generally it was decided to rent out the remaining unsold properties, Orchard House, Hildenborough and Burnside Court, Tunbridge Wells. These properties were transferred to Selmat Limited, the wholly owned subsidiary, properties refinanced and the bank loans repaid. All of the properties have been let out on Assured Shorthold Tenancy Agreements.

There was retained within the development portfolio of Trafalgar New Homes Limited, the executive detached house at Saxons, Speldhurst, Tunbridge Wells and the six houses under construction at Wellesley Road, Sheerness, Kent. Saxons has recently been sold for £ 1.58 million and the six properties at Sheerness are complete and are now currently on the market.

At Staplehurst, Kent the Company appealed the refusal of its Planning Application for an Extra Care/Assisted Living consent and we currently await the result of the Appeal.

As regards the Options held by the group, planning consent has been forthcoming on two of the sites, one of which (Ewell) was sold during the period to generate a gross profit of £259,152; Planning consent has also been granted for a three unit scheme in Ashtead, Surrey and a sale has been agreed, which again, should show a healthy return.

Other sites under Option are all in the Planning process. Further development land opportunities are being explored and sites with planning permission and sites subject to planning are under consideration.

Page 1 of 6

Paul Treadaway

Chief Executive

CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE

SIX MONTHS ENDED 30 SEPTEMBER 2019

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

6 month

6 month

Year

period

period

ended

ended

ended

31

30

30

March

September

September

(Audited)

(Unaudited)

(Unaudited)

Note

2019

2018

2019

£'000

£'000

£'000

Revenue

2,286

1,780

2,123

Cost of sales

(2,431)

(1,717)

(2,392)

Gross (loss)/profit

(145)

63

(269)

Administrative expenses

(421)

(307)

(473)

Underlying operating (loss)*

(566)

(244)

(742)

Other interest receivable and similar income

43

-

5

Exceptional

-

-

(1,559)

items

Interest payable and similar charges

(5)

-

-

(Loss) before taxation

(528)

(244)

(2,296)

Tax payable on profit on ordinary activities

4

-

-

-

(Loss) after taxation for the period

(528)

(244)

(2,296)

Other comprehensive income

Total comprehensive (loss) for the period

(528)

(244)

(2,296)

(Loss) attributable to:

(528)

Equity holders of the parent

(244)

(2,296)

Total comprehensive (loss) for the period attributable to:

Equity holders of the parent

(528)

(244)

(2,296)

(LOSS) PER ORDINARY SHARE;

(0.11)p

Basic/Diluted

5

(0.05)p

(0.54)p

  • Operating (loss) before non-recurring items, costs of acquisition and deemed cost of listing All results in the current and preceding financial period derive from continuing operations.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 30 September 2019

30

30

31 March

September

September

(Audited)

Note

(Unaudited)

(Unaudited)

2019

2018

2019

£'000

£'000

£'000

Non-current assets

Tangible fixed assets

1

2

1

1

2

1

Current assets

4,928

Inventory

6,624

4,481

Trade and other receivables

62

115

92

Page 2 of 6

Cash at bank and in hand

28

16

32

5,018

6,755

4,605

Total assets

5,019

6,757

4,606

EQUITIES AND LIABILITIES

Current liabilities

463

Trade and other payables

415

442

Borrowings

2,535

1,731

2,502

2,998

2,146

2,944

Non-current liabilities

4,947

Borrowings

5,170

4,273

Total liabilities

7,945

7,316

7,217

Equity attributable to equity

holders of the company

2,632

Called up share capital

6

2,570

2,570

Share premium account

2,661

2,510

2,510

Reverse acquisition reserve

(2,818)

(2,818)

(2,818)

Profit and loss account

(5,401)

(2,821)

(4,873)

Total Equity

(2,926)

(559)

(2,611)

Total Equity and Liabilities

5,019

6,757

4,606

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six month period ended 30 September 2019

Share

Share

Reverse

Retained

Total

capital

premium

acquisition

profits

equity

£'000

£'000

reserve

/(losses)

£'000

£'000

£'000

At 1 April 2019

2,570

2,510

(2,818)

(4,873)

(2,611)

Loss for period

-

-

-

(528)

(528)

Other comprehensive income

-

-

-

-

-

for the period

Total comprehensive income for

-

-

-

(528)

(528)

the period

Issue of shares

62

188

-

-

250

Share issue costs

-

(37)

-

-

(37)

At 30 September 2019

2,632

2,661

(2,818)

(5,401)

(2,926)

For the purpose of preparing the consolidated financial statement of the Group, the share capital represents the nominal value of the issued share capital of 1p per share. Share premium represents the excess over nominal value of the fair value consideration received for equity shares net of expenses of the share issue.

The reverse acquisition reserve related to the reverse acquisition between Trafalgar Property Group plc and Trafalgar New Homes Limited on 11 November 2011.

On 31st May 2019, 62,500,000 addional shares were issued being ordinary 0.01p shares and 0.03p share premium.

Page 3 of 6

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six month period ended 30 September 2019

6 month

6 month

Year

period

period

ended

ended

ended

31 March

30

30

(Audited)

September

September

(Unaudited)

(Unaudited)

2019

2018

2019

£'000

£'000

£'000

Cash flow from operating activities

Operating (loss)

(528)

(244)

(2.296)

Depreciation charges

-

-

-

(Increase)/decrease in stocks

(447)

1,170

3,494

(Increase)/decrease in debtors

30

(23)

3

(Decrease)/Increase in creditors

(38)

21

48

Interest paid

5

-

145

Net cash outflow/(inflow) from

(978)

924

1,394

operating activities

Investing activities

Purchase of tangible fixed assets

-

-

-

Net cash used in investing activities

-

-

-

Taxation

-

-

(291)

Financing activities

Issue of shares

250

-

-

Net new loans/(loan repayments) in period

707

(1,384)

(1,521)

Share issue costs

(37)

-

-

Amount injected/(withdrawn) by directors

59

18

320

Interest paid

(5)

-

(328)

Net cash flow from financing

974

(1,366)

(1,529)

(Decrease)/increase in cash and cash

( 4)

(442)

426

equivalents in the period

Cash and cash equivalents at the

32

458

458

beginning of the year

Cash and cash equivalents at the end

28

16

32

of the period

NOTES TO THE FINANCIAL INFORMATION

For the period ended 30 September 2019

1. GENERAL INFORMATION

This financial information is for Trafalgar Property Group Plc ("the Company") and its subsidiary undertakings. The Company is incorporated in England and Wales.

2. BASIS OF PREPARATION

The interim consolidated financial information has been prepared in accordance with International Financial Reporting Standards (IFRS) and interpretations adopted by the European Union and as applied in accordance with the provisions of the Companies Act 2006. The interim financial information incorporates the results for the group for the six month period from 1 April 2019 to 30 September 2019. The results for the year ended 31 March 2019 have been extracted from the statutory financial statements for the Company for the year ended 31 March 2019. The interim financial information should be read in conjunction with the audited financial statements for the group for the year ended 31 March 2019.

The same accounting policies, presentation and methods of computation have been followed in these unaudited interim financial statements as those which were applied in the preparation of the group's annual financial statements for the year ended 31 March 2019.

The interim consolidated financial information incorporates the financial statements of Trafalgar Property Group Plc and its

Page 4 of 6

subsidiaries.

The interim financial information for the six months ended 30 September 2019 was approved by the directors on 18th December 2019.

3. SEGMENTAL REPORTING

For the purpose of IFRS 8, the chief operating decision maker ("CODM") takes the form of the Board of Directors. The Directors' opinion of the business of the Group is that the principal activity of the Group was property development and there is considered to be one reportable segment, that of property development carried on in the UK. The internal and external reporting is on a consolidated basis with transactions between group companies eliminated on consolidation. Therefore the financial information of the single segment is the same as that set out in the consolidated statement of comprehensive income, the consolidate statement of changes in equity, the consolidated statement of financial position and cash-flows.

NOTES TO THE FINANCIAL INFORMATION

For the period ended 30 September 2018

4.

TAXATION

6 month

6 month

Year

period

period ended

ended

ended

30

31 March

30

September

(Audited)

September

(Unaudited)

(Unaudited)

2019

2018

2019

£'000

£'000

£'000

Current tax

-

-

-

Tax charge/(credit)

-

-

-

(Loss) on ordinary activities before tax

(528)

(244)

(2,296)

Based on profit for the period:

-

Tax at 20%

-

-

Effect of:

-

Losses (not utilised)/utilised

-

-

Tax charge for the period

-

-

-

5. (LOSS) PER ORDINARY SHARE

The calculation of (loss) per ordinary share is based on the following (losses) and number of shares:

6 month

6 month

Year

period

period ended

Ended

ended

30

31 March

30

September

(Audited)

September

(Unaudited)

(Unaudited)

2019

2018

2019

£'000

£'000

£'000

(Loss) for the period

(528)

(244)

(2,296)

Weighted average number of shares for

487,690,380

425,190,380

425,190,380

basic (loss) per share

Weighted average number of shares for

487,690,380

425,190,380

425,190,380

diluted (loss) per share

(LOSS) PER ORDINARY SHARE;

(0.11)p

Basic

(0.05)p

(0.54)p

Diluted

(0.11)p

(0.05)p(0.54)p

Page 5 of 6

NOTES TO THE FINANCIAL INFORMATION

For the period ended 30 September 2019

6.

SHARE CAPITAL

Authorised Share Capital

30

31 March

September

2019

2019

Number

Number

Ordinary shares of 1p each

425,190,380

425,190,380

Issued in period

62,500,000

-

487,690,380

425,190,380

Issued, allotted and fully paid

Authorised Share Capital

30

31 March

September

2019

2019

£'000

£'000

Ordinary shares

2,632

2,570

Share premium

2,661

2,510

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.comor visit www.rns.com.

END

IR LLFLRFDLALIA

Page 6 of 6

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Trafalgar Property Group plc published this content on 19 December 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 December 2019 16:30:07 UTC