First day of dealings on AIM

RNS Number : 4070J

Trafalgar New Homes PLC

16 July 2013

 



Trafalgar New Homes PLC

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

Admission to Trading on AIM

Trafalgar New Homes, the residential property developer operating in southeast England, is pleased to announce today its admission to trading on AIM. Dealings of the Company's ordinary shares of 1p each ("Ordinary Shares") commenced at 08:00am this morning ("Admission"), under the ticker TRAF.

Key Points:

·     Trafalgar New Homes is a residential property developer focused on Kent, Surrey, Sussex and the M25 ring south of London.

·     The Group specialises in small developments and outsources the design, planning and construction to third party contractors on a fixed price basis.

·    The Board believes the Group occupies a niche position in the current market, between local builders and developers and the larger house building companies.

·     The Company has raised £280,000, before expenses, through the issue of 14,000,000 new Ordinary Shares at 2p per Ordinary Share in a placing.

·     On Admission the Company will have 228,375,190 Ordinary Shares in issue giving it an approximate market capitalisation of £4.6 million. 

·     The Directors expect the audited results for the year to 31 March 2013 to be announced in August.

·     Allenby Capital Limited is acting as the Company's nominated adviser and broker.

Christopher Johnson, CEO of the Company, commented: "It has always been our intention to move to AIM at an appropriate time and the Board believes that the Group has made sufficient progress such that the move to AIM is now the logical next step. We  have  a  continuing  commitment  to provide quality homes at realistic prices  in  the  most  sought  after locations. We are excited with the prospects for the Company and look forward to maximising returns for our shareholders."

For further information and a copy of the AIM admission document visit www.trafalgar-new-homes.co.uk or contact:

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

About Trafalgar New Homes

Trafalgar New Homes is the holding company of Combe Bank Homes, a successful residential property developer operating in the southeast of England. The founders of Combe Bank Homes have a long track record of developing new and refurbished homes, principally in Kent. Combe Bank Homes was incorporated in 2006 and was acquired by ICAP Securities & Derivatives Exchange (ISDX) quoted Trafalgar New Homes in a reverse takeover on 11 November 2011.

The Group's focus is on the select acquisition of land for residential property development. The Group outsources all development activities, for example the obtaining of planning permission, design and construction, and uses fixed price build contracts. This enables the Group to tightly control its development and overhead costs.

The Group focuses on the regions of Kent, Surrey, Sussex and the M25 ring south of London and targets development sites of up to 20 homes, with sales prices typically ranging from £100,000 to £750,000 per unit, although larger projects are undertaken.

The Board believes that the Group occupies a niche position in the current market, between local builders and developers and the larger house building companies. The Board believes that the Group's relationships with its lenders enables it to secure competitive financing for its developments, allowing the Group to acquire and develop sites beyond the reach of smaller local builders and developers, but which are generally too small to be of serious interest to the larger property development companies. The Group also benefits from the experience and relationships of its management in its geographical market.

In the financial year ended 31 March 2013, the Group sold 12 units and conditionally sold its subsidiary company, Combe Homes (Investments) Limited, which holds six rental flats in Maidstone, Kent (The Square).

Since 31 March 2013, at Edenbridge (High Street), a further two units have been sold with two more under offer, leaving only one unit to be sold. At Oakhurst Park Gardens, the development of 12 homes has been completed and marketing is due to start later this month. With the expected contributions to revenue from these developments in the current financial year, subject to no unforeseen circumstances and sufficient distributable reserves being available, the Company aims to pay a final dividend for the year to 31 March 2014.

The Group owns a further four sites and has agreements to purchase two other sites. The development of five of these is planned to start in 2014 and to continue on into 2016, with expected contributions to revenue in both the financial years ending 31 March 2015 and 2016.

**ENDS**

 

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