Interim Results

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

Christopher Johnson

 

+44 (0) 1732 700 000

Spark Advisory Partners Ltd -AIM Nominated Adviser and Broker

Matt Davis

 

+44 (0) 20 3368 3550

 

 

 

  

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.

 

 

Paul Treadaway

Chief Executive
 

 

CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE

SIX MONTHS ENDED 30 SEPTEMBER 2019

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

6 month

period ended

30 September

(Unaudited)

6 month

period ended

30 September

(Unaudited)

Year

ended

31 March

(Audited)

 

 

 

 

 

 

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

 

Exceptional items                                                                                     

 

43

 

-

-

 

-

5

 

(1,559)

 

 

 

 

 

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:

 

 

 

 

Equity holders of the parent

 

   (528)

   (244)

   (2,296)

 

 

 

 

 

Total comprehensive (loss) for the period attributable to:

 

 

 

 

Equity holders of the parent

 

(528)

(244)

(2,296)

 

 

 

 

 

(LOSS) PER ORDINARY SHARE;

 

 

 

 

Basic/Diluted

5

(0.11)p

(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 September

(Unaudited)

30 September

(Unaudited)

31 March

(Audited)

 

Note

2019

2018

2019

 

 

£'000

£'000

£'000

 

 

 

 

 

Non-current assets

 

 

 

 

 

Tangible fixed assets

 

          1

          2

          1

 

 

1

2

1

 

 

 

 

 

Current assets

 

 

 

 

Inventory

 

4,928

6,624

4,481

Trade and other receivables

 

62

115

92

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

 

 

 

 

Trade and other payables

 

463

415

442

Borrowings

 

   2,535

  1,731

   2,502

 

 

 

 

 

 

 

2,998

2,146

2,944

 

 

 

 

 

Non-current liabilities

 

 

 

 

Borrowings

 

   4,947

  5,170

   4,273

 

 

 

 

 

Total liabilities

 

   7,945

  7,316

   7,217

 

 

 

 

 

 

 

 

 

 

Equity attributable to equity holders of the company

 

 

 

 

Called up share capital

6

2,632

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 capital

Share premium

Reverse acquisition reserve

Retained profits

/(losses)

Total equity

 

£'000

£'000

£'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 the period

-

-

-

(528)

(528)

 

 

 

 

 

 

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.

 

 

 

 

CONSOLIDATED STATEMENT OF CASH FLOWS

For the six month period ended 30 September 2019

 

 

 

6 month

period ended

30 September

(Unaudited)

6 month

period ended

30 September

(Unaudited)

Year

ended

31 March

(Audited)

 

 

 

 

 

 

 

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 operating activities

 

      (978)

    924

    1,394

 

 

 

 

 

 

 

 

 

 

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 equivalents in the period

 

 ( 4)

         (442)

       426

 

 

 

 

 

Cash and cash equivalents at the beginning of the year

 

      32

       458

       458

 

 

 

 

 

Cash and cash equivalents at the end of the period

 

       28

       16

       32

 

                                                                                                            

 

 

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 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

period ended

30 September

(Unaudited)

6 month

period ended

30 September

(Unaudited)

Year

ended

31 March

(Audited)

 

 

 

 

 

 

 

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

period ended

30 September

(Unaudited)

6 month

period ended

30 September

(Unaudited)

Year

Ended

31 March

(Audited)

 

 

 

 

 

 

 

2019

2018

2019

 

 

£'000

£'000

£'000

 

 

 

 

 

(Loss) for the period

 

           (528)

            (244)

           (2,296)

 

 

 

 

 

Weighted average number of shares for basic (loss) per share

 

487,690,380

425,190,380

425,190,380

 

 

 

 

 

Weighted average number of shares for diluted (loss) per share

 

487,690,380

425,190,380

425,190,380

 

 

 

 

 

(LOSS) PER ORDINARY SHARE;

 

 

 

 

Basic

 

        (0.11)p

(0.05)p

           (0.54)p

 

 

 

 

 

 

 

 

 

 

Diluted

 

        (0.11)p

           (0.05)p

           (0.54)p

 

                                                                                                                     

 

 

 

NOTES TO THE FINANCIAL INFORMATION

For the period ended 30 September 2019

 

 

6.           SHARE CAPITAL

 

              Authorised Share Capital

 

 

 

 

30 September

2019

31 March

2019

 

 

 

Number

Number

 

 

 

 

 

              Ordinary shares of 1p each

  

              Issued in period

 

 

 

 

425,190,380

 

 62,500,000

 

425,190,380

 

-

 

 

 

487,690,380

425,190,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

               Issued, allotted and fully paid

 

 

 

 

              Authorised Share Capital

 

 

 

 

 

 

 

30 September

2019

31 March

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.com or visit www.rns.com.
 
END
 
 
IR LLFLRFDLALIA
UK 100

Latest directors dealings