Trafalgar (AIM: TRAF), the AIM quoted residential and assisted living property developer, provides an update on trading for the financial year ending 31 March 2018.
During the financial year, Trafalgar, through its subsidiary Trafalgar New Homes Limited (previously namedCombe Bank Homes Limited), has been engaged in completing the development of the five sites under ownership in Kent, as follows:
– Burnside, Tunbridge Wells, comprising six apartments. Construction has completed on this site and the penthouse apartment was sold prior to the end of the financial period for £580,000.
– Alexander Stables, Hildenborough, comprising two detached houses. Both of these are on the market and one of the houses has been sold subject to contract at a price of £900,000.
– Land at the rear of 11 High Street, Edenbridge, comprising a terrace of three starter homes. Construction has been completed at this site and one of the three houses was sold prior to the financial year end for £325,000.
– Saxons, Speldhurst, near Tunbridge Wells, comprising a superior executive detached house. Construction has nearly completed on this site and it is expected to be put on the market in May.
– Wellesley Road, Sheerness, comprising six townhouses. Construction of these houses is substantially complete, with completion of the build on these sites scheduled for July.
The completed sales of the Burnside penthouse and the terraced house at Edenbridge will contribute to the Group’s turnover for the year ended 31 March 2018, with the sales proceeds of the remaining properties across the five sites all expected to contribute to turnover for the year ending 31 March 2019.
The Company expects to announce its audited financial results for the year ended 31 March 2018 in the third quarter of 2018.
Outlook for the current financial year
The acquisition of Beaufort Homes Limited, which has now been renamed Trafalgar Retirement + Limited (“Trafalgar Retirement +”), last month has enhanced Trafalgar’s scope and size of operations. As previously stated, Trafalgar Retirement + has entered into option agreements to acquire 13 properties, subject to obtaining the required planning permissions, and these comprise three development sites: two for extra care and assisted living schemes and one for residential development. Trafalgar Retirement + is also in negotiations to enter into option agreements to acquire further sites. The acquisition marked a significant development in the Group’s strategy as Trafalgar is now better positioned to serve the increasing demand for assisted living properties.
In line with the Company’s strategy and to maintain brand consistency, the Company’s name has changed to Trafalgar Property Group plc. Following the acquisition, Beaufort Homes Limited was renamed Trafalgar Retirement + Limited, whilst Combe Bank Homes Limited has become Trafalgar New Homes Limited and will continue to develop the residential properties division in the South East of England.
Funding for the purchase and development of both residential and extra care and assisted living developments is currently being negotiated, such as the memorandum of understanding with DIS Partners Holding Luxembourg S.à r.l. that was announced yesterday. In addition, Trafalgar is progressing the issue of a bond, which is proposed to be traded on the NEX Exchange, to raise funds for development purposes.