Company Update

RNS Number : 2517I

Trafalgar Property Group PLC

31 March 2020

 

TRAFALGAR PROPERTY GROUP PLC

("Trafalgar", the "Company" or the "Group")

Company Update

Trafalgar (AIM: TRAF), the property development operations and hydroponics business, provides the following update:

Property Development

Barnett Wood Lane

As announced on 20 January 2020, the Company has been successful in obtaining planning consent for a three unit development in Ashtead Surrey ("Ashtead"). Since this date and despite the impact of Covid-19 discussions have continued to progress and the Company is hopeful of making further announcements regarding a profitable disposal of Ashtead in the coming months.

Staplehurst

The Company had launched a planning appeal regarding the development on the land at Staplehurst.  The Company has been informed that this appeal has been turned down and consequently Trafalgar's option to purchase this land has consequently lapsed.  Whilst the Board considers the site has potential it has decided to focus limited resources elsewhere and has terminated this project. The Company accumulated costs of  170,000 on this project, that will now be written-off.  There is no impact on the Company's cash position as a result of the project termination.

Hydroponics and Potential Fundraise Update

Since the publication of the circular increasing the authority to allot shares on 11 March 2020, the Company progressed conversations with a number of hydroponics investment opportunities.  The Board is pleased to report that following these discussions it is further convinced of the exciting opportunities to deliver value to shareholders through hydroponics ventures which leverage off the Company's property development expertise.  

The Company's hydroponics strategy is conditional on the raising of new equity or leverage finance.  Whilst the board is confident of the Company's ability to raise growth capital for this highly attractive venture, it must do so with regard to the value that could be created not only for new shareholders but also existing investors in the Company.  The Company will not be seeking to raise new equity until it believes that this can be completed at a price which values the Company and the hydroponics opportunities open to it correctly.   Further announcements will be made in due course.

Enquiries:

Trafalgar Property Group Plc James Dubois	[phone]
Spark Advisory Partners Ltd -AIM Nominated Adviser Matt Davis	[phone]
Peterhouse Capital Limited - Broker Duncan Vasey/Lucy Williams	[phone]

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.

 

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