Development and trading update

RNS Number : 4894X

Trafalgar New Homes PLC

22 February 2017

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014

Trafalgar New Homes plc

(the "Company")

Development and trading update

Trafalgar New Homes plc (AIM: TRAF), the residential property developer operating in southeast England, today provides an update on the Company's development portfolio and trading for the current financial year.

Development portfolio

Burnside, Tunbridge Wells, Kent

The build is now complete on this development of six luxury flats, comprising one 1-bed, four 2-beds and one 3-bed penthouse apartments, with communal undercroft parking, a lift and community woodland area. A marketing launch is scheduled for 25 February 2017.

Edenbridge, Kent

The build is almost complete on three 2-bed/2-bath terraced houses at this site, with carpets and planking going down now and marketing commencing on 27 February 2017 for a gross sales value of £1,065,000.

Hildenborough, Kent

This development comprises two executive style detached houses.  The build has been delayed beyond management's expectations with works now expected to be finished by end of March 2017. Marketing is expected to commence in April 2017 with a gross development value of approximately £1.8 million.

Speldhurst, Tunbridge Wells, Kent

This site comprises one large detached house.  The build is progressing well with completion scheduled for Q3 2017. A buyer has registered interest and is selling their own property in preparation to purchase.

Sheerness, Kent

This development, of six terraced houses, is underway and completion is anticipated in Q4 2017.

Staplehurst, Kent

Planning permission for 24 units is still awaited on this site and a further application will be made in the coming months.

In addition, the company has a number of additional projects under consideration in the Kent and East Sussex area.

Current trading

Under the Company's accounting policies, it recognises sales on completion of a contract, rather than on exchange.  The Directors of the Company had previously anticipated that sales of all units at the Edenbridge, Burnside and Hildenborough developments would be completed prior to the end of the current financial year ending on 31 March 2017. However, Edenbridge and Burnside were only recently ready for sale and therefore it is considered unlikely that any sale contracts will complete by 31 March 2017. Similarly, with the build at Hildenborough behind schedule, a sale of those properties is not expected to complete by 31 March 2017 as previously anticipated.  Accordingly, the timing of sales at these sites will impact the Company's financial results for the year ending 31 March 2017, with revenue and profit before tax for the year expected to be materially lower than current market expectations. The sales of any remaining units at these three sites after 31 March 2017 are expected to contribute to the Company's financial results for the year ending 31 March 2018 and the Company aims to achieve these sales as soon as possible in the new financial year.

Chris Johnson, Chief Executive, commented: "It is pleasing to report that the selling market has seen an upturn in activity since the start of February, resulting in a number of timed appointments to view our Burnside development on launch day.

"In addition, we have an interested buyer for one of the detached units on our Hildenborough site and pre-launch enquiries on two of the three units on our Edenbridge site. A potential buyer has lodged his interest in our executive detached house in the course of construction at Speldhurst, Tunbridge Wells, Kent.

"It appears that the somewhat moribund market that existed post the Brexit vote and through to the start of the New Year could now be behind us."

Enquiries:

Trafalgar New Homes Plc Christopher Johnson	[phone]
Allenby Capital Ltd - Nominated Adviser and Broker Jeremy Porter/James Reeve	[phone]
Yellow Jersey PR Limited Dominic Barretto	[phone]

 

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