Director Loan

RNS Number : 3901E

Trafalgar New Homes PLC

18 July 2016

 

Trafalgar New Homes plc

(the "Company")

Director Loan

Trafalgar New Homes plc (AIM: TRAF), the residential property developer operating in southeast England, today provides an update on its director loan from Chris Johnson, Chief Executive. 

On 17 July 2015, the Company announced that its loan from Chris Johnson to the Company's subsidiary, Combe Bank Homes Limited ("CBH"), which then stood at approximately £2,000,000 (the "CBH Loan"), was extended until 31 March 2017. In addition, the Company announced that Mr Johnson had agreed to support the Company for its anticipated working capital needs.

Under the terms of the CBH Loan, Mr Johnson is entitled to receive interest of 5% per annum, payable annually in arrears.  On 15 July 2016, Mr Johnson agreed to waive interest due on the CBH Loan for the year ended 31 March 2016, which would have totalled £106,200.  The CBH Loan will continue to accrue interest for the year ending 31 March 2017.  The outstanding balance on the CBH Loan currently stands at £2,097,000.  CBH will make repayments on the CBH Loan periodically, depending on its working capital requirements and Mr Johnson has confirmed he will continue to support the Company's working capital requirements as needed.

The waiver of interest payments on the CBH Loan for the year ended 31 March 2016 is a related party transaction under the AIM Rules for Companies.  Accordingly, the independent directors of the Company consider, having consulted with Allenby Capital Limited, the Company's Nominated Adviser, that the waiver of the interest is fair and reasonable insofar as the Company's shareholders are concerned. 

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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