TIDMTRAF
RNS Number : 0443X
Trafalgar Property Group PLC
15 December 2023
15 December 2023
TRAFALGAR PROPERTY GROUP PLC
("Trafalgar", the "Company" or "Group")
Interim Results
for the six months ended 30 September 2023
Trafalgar (AIM: TRAF), the AIM quoted residential property
developer operating in southeast England, announces its interim
results for the six months ended 30 September 2023 (the
"Period").
Key financials:
-- Turnover for the Period was GBPnil, (H1 2022: GBP17,798);
-- Gross profit of GBPnil, (H1 2022: gross profit GBP17,798),
giving a loss before tax of GBP214,270 (H1 2022: pre-tax loss:
GBP444,137);
-- EPS of (0.07p) (H1 2022 (0.20p); and
-- Cash in bank at period end was GBP237,808 (H1 2022:
GBP152,897); at 11 December 2023 cash at bank was GBP12,876***
-- Paul Treadaway, Chairman of Trafalgar, said: "The
construction industry in general continues to be difficult and
trying to find suitable development sites for the right price is
becoming harder. The continued high inflation and high interest
rates also impacts the general market conditions for property.
However, the results for the six months to 30 September 2023
show some positive activity with the sale of the Group's final
investment property and the continuation of the development of the
site at Speldhurst ."
Copies of the interim report will be available later today on
the Company's website, www.trafalgarproperty.group
Enquiries:
Trafalgar Property Group Plc
Paul Treadway +44 (0) 1732 700 000
Spark Advisory Partners Ltd - AIM Nominated
Adviser
Matt Davis +44 (0) 20 3368 3550
Peterhouse Capital Limited - Broker
Duncan Vasey/Lucy Williams +44(0)20 7409 0930
Notes to Editors:
Trafalgar Property Plc is the holding company of Trafalgar New
Homes Limited, Selmat Limited and Trafalgar Retirement+ Limited,
residential property developers operating in the southeast of
England. The founders have a long track record of developing new
and refurbished homes, principally in Kent and Surrey.
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 .
TRAFALGAR PROPERTY GROUP PLC
INTERIM REPORT FOR THE SIX MONTHSED 30 SEPTEMBER 2023
CHIEF EXECUTIVE'S REPORT
I present the Company's Interim Results for the six month period
to 30 September 2023. Revenue for the period was GBPnil and cost of
sales was GBPnil giving a gross profit for the period of
GBPnil.
Mortgage and private loan interest was paid during the period of
GBP31,589of which GBP14,810 was capitalized as part of inventory as
relating to the development at Speldhurst with a further GBP38,643
of loan note equity interest being accrued in the period.
The result of the above is a loss before taxation for the period
of GBP214,270.
The directors continue to consider relevant information
including the current cost-of-living crisis, higher interest rates
and higher inflation, which are driving a challenging market and
have performed a robust analysis of future cash flows.
Based on their assessments and having regard to resources
available to the entity, the directors have concluded that they can
continue to adopt the going concern basis in preparing the
financial statements.
A summary of activities in the 6 months to 30 September 2023 for
the Group are as follows:
- Trafalgar New Homes has continued to develop the site at
Speldhurst and the building of a single dwelling is progressing
well with no adverse issues affecting the planned completion by the
end of the year.
- Selmat sold the final investment property in Hildenborough in
September 2023 for GBP940,000 before costs.
- A placing of shares was carried out in September 2023 raising
a gross amount of GBP125,000, before costs, to be used for working
capital purposes.
- The Group continues to look for opportunities in vertical
farming but the cost of energy in the UK has meant the Group are
widening its search to areas outside of the UK.
Paul Treadaway
Chief Executive
15 December 2023
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 month 6 month Year
period period ended
ended ended
30 September 30 September 31 March
2023 2022
(Unaudited) (Unaudited) 2023
(Audited)
Note GBP'000 GBP'000 GBP'000
Revenue - 18 18
Cost of sales - (-) (31)
--------------- -------------- -----------
Gross profit - 18 (13)
Fair value movement on investment
property - - (123)
(Loss) on disposal of investment
property - (6) (12)
Administrative expenses (159) (380) (572)
--------------- -------------- -----------
Underlying operating (loss) (159) (368) (720)
Interest payable and similar
charges (55) (76) (124)
--------------- -------------- -----------
(Loss) before taxation (214) (444) (844)
Tax payable on profit on ordinary 4 - - -
activities
--------------- -------------- -----------
(Loss) after taxation for the
period (214) (444) (844)
--------------- -------------- -----------
Other comprehensive income
Total comprehensive (loss)
for the period (214) (444) (844)
(Loss) attributable to:
Equity holders of the parent (214) (444) (844)
--------------- -------------- -----------
Total comprehensive (loss)
for the period attributable
to:
Equity holders of the parent (214) (444) (844)
(LOSS) PER ORDINARY SHARE;
Basic/Diluted 5 (0.07)p (0.20)p (0.34)p
--------------- -------------- -----------
All results in the current and preceding financial period derive
from continuing operations.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September 30 September 31 March
2023 2022
(Unaudited) (Unaudited) 2023
(Audited)
Note GBP'000 GBP'000 GBP'000
Non-current assets
Tangible fixed assets 26 1 26
26 1 26
Current assets
Inventory 496 339 318
Trade and other receivables 25 54 34
Investment properties 6 - 1,375 927
Cash at bank and in hand 238 153 17
-------------- ------------- -----------
759 1,921 1,296
-------------- ------------- -----------
Total assets 785 1,922 1,322
============== ============= ===========
EQUITIES AND LIABILITIES
Current liabilities
Trade and other payables 166 468 223
Borrowings 875 760 875
-------------- ------------- -----------
1,041 1,228 1,098
Non-current liabilities
Borrowings 3,191 3,886 3,573
-------------- ------------- -----------
Total liabilities 4,232 5,114 4,671
-------------- ------------- -----------
Equity attributable to equity
holders of the Company
7 &
Called up share capital 8 2,985 2,860 2,860
Share premium account 3,476 3,485 3,485
Loan note equity 7 69 145 107
Reverse acquisition reserve (2,818) (2,818) (2,818)
Capital contribution reserve 9 400 158 400
Profit and loss account (7,559) (7,022) (7,383)
-------------- ------------- -----------
Total Equity (3,447) (3,192) (3,349)
-------------- ------------- -----------
Total Equity and Liabilities 785 1,922 1,322
============== ============= ===========
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Loan Reverse Retained Capital Total
capital premium Note acquisition profits contribution equity
equity reserve /(losses) reserve
Reserve
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
At 1 April 2023 2,860 3,485 107 (2,818) (7,383) 400 (3,349)
(Loss)/Profit
for period - - - - (214) - (214)
Other comprehensive - - - - - - -
income for the
period
---------------------- --------- --------- --------- ------------- ----------- -------------- --------
Total comprehensive
income for the
period - - - - (214) - (214)
Issue of shares - - - -
Shares issued
during the period
net of costs 125 (9) - - - - 116
Loan note equity (38) - 38 - -
-Movement in loan - - - - - -
note equity reserve
At 30 September
2023 2,985 3,476 69 (2,818) (7,559) 400 (3,447)
========= ========= ========= ============= =========== ============== ========
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 0.1p 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.
Loan note equity further details are provided in Note 7. Capital
contribution reserve details are further provided in Note 9.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
2023
(Unaudited) 2022 2023
(Unaudited) (Audited)
GBP'000 GBP'000 GBP'000
Cash flow from operating
activities
Operating (loss)/profit (214) (444) (844)
Depreciation charges - - -
Loss on sale of investment
property - 6 12
Fair value movements
on investment property - - 123
(Increase)/decrease in
stocks (178) (313) (322)
(Increase)/decrease in
debtors 9 (14) 7
Increase/(Decrease) in
creditors (57) 98 95
Write-off of Inventory - - 30
Loan note equity movement (39) - 157
Interest payable 55 76 124
--------------- -------------- ----------------------------
Net cash inflow/(outflow)
from operating (424) (591) (618)
Activities
Investing activities
Disposal of investment
property & revaluation 927 331 650
Disposal / (Purchase)
of tangible fixed assets - (25)
--------------- -------------- ----------------------------
Net cash used in investing
activities 927 331 625
Taxation - -
Financing activities
Issue of shares 125 400 368
Share issue costs (9) (32) -
New loan borrowings 156 91 105
Related party new loan
borrowings 141 - 189
Related party loan repayment - - (260)
Loan note equity movement 115
Repayment loan borrowings (678) (140) (270)
Repayment other borrowings - - (90)
Interest paid (17) (34) (44)
Net cash flow from financing (282) 400 (2)
Increase/(decrease)
in cash and cash equivalents 221 140 4
--------------- -------------- ----------------------------
in the period
Cash and cash equivalents
at the beginning of the
year 17 13 13
Cash and cash equivalents
at the end of the year 238 153 17
--------------- -------------- ----------------------------
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
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
with regard to International Financial Reporting Standards (IFRS)
as adopted for use in the United Kingdom (UK IFRS) and those parts
of the Companies Act 2006 that are relevant to companies, which
report in accordance with IFRS. The interim financial information
incorporates the results for the Group for the six month period
from 1 April 2023 to 30 September 2023. The results for the year
ended 31 March 2023 have been extracted from the statutory
financial statements for the Group for the year ended 31 March
2023. The financial information set out in these interim
consolidated financial information does not constitute statutory
accounts as defined in S434 of the Companies Act 2006. They do not
include all of the information required for full annual financial
statements and should be read in conjunction with the consolidated
financial statements of the Group for the year ended 31 March 2023,
which contained an unqualified audit report and have been filed
with the Registrar of Companies. They did not contain statements
under S498 of the Companies Act 2006.
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
2023.
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 2023 was approved by the directors on 15 December
2023.
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 residential property development and there is
considered to be one reportable geographical 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
consolidated statement of changes in equity, the consolidated
statement of financial position and cash-flows.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
4. TAXATION
6 month 6 month Year
period ended period ended ended
30 September 30 September 31 March
2023 2022
(Unaudited) (Unaudited) 2023
(Audited)
GBP'000 GBP'000 GBP'000
Current tax - - -
--------------- -------------- -----------
Tax charge/(credit) - - -
--------------- -------------- -----------
Loss/(profit) on ordinary activities
before tax (214) (444) (844)
Based on profit for the period:
Tax at 25% (2022: 19%) (54) (84) (160)
Effect of:
Losses utilized 54 84 160
--------------- -------------- -----------
Tax charge for the period - - -
--------------- -------------- -----------
No tax provision has been made on account of brought forward
losses.
5. PROFIT/(LOSS) PER ORDINARY SHARE
The calculation of profit/ (loss) per ordinary share is based on
the following (losses) and number of shares:
6 month 6 month Year
period ended period ended Ended
30 September 30 September 31 March
2023 2022
(Unaudited (Unaudited) 2023
(Audited)
GBP'000 GBP'000 GBP'000
(Loss)/profit for the period (214) (444) (844)
--------------- -------------- ------------
Weighted average number of shares
for basic 304,548,666 224,850,000 249,525,835
--------------- -------------- ------------
(loss)/profit per share
Weighted average number of shares
for diluted 304,548,666 224,850,000 249,525,835
--------------- -------------- ------------
profit/(loss) per share
(LOSS)/PROFIT PER ORDINARY SHARE;
Basic (0.07)p (0.20)p (0.34)p
--------------- -------------- ------------
Diluted (0.07)p (0.20)p (0.34)p
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
6. INVESTMENT PROPERTIES
FAIR VALUE 30 September 31 March 2023
2023
GBP'000 GBP'000
b/fwd 1 April 2023 927 1,712
Additions - -
Disposals (927) (662)
Revaluation - (123)
------------- --------------
31 March - 927
------------- --------------
Net Book Value
-------------
At 30 September 2023 - -
------------- --------------
At 31 March 2023 927
--------------
Fair value at 30 September 2023
is represented by
Remaining value in 2023 (2023:
at revalued amount) - 927
------------- --------------
LOSS ON DISPOSAL
Fair value 927 662
Disposal proceeds including costs
of sale 927 650
------------- --------------
Loss on disposal - 12
------------- --------------
Properties have been assessed at Fair value basis at 31 March
2023 by using level 3 fair value hierarchy and using the selling
price achieved following the sale of one leasehold property in
September 2023 for GBP927,249.
7. SHARE CAPITAL
Authorised Share Capital
30 September 31 March
2023 2023
Number Number
Ordinary shares of 0.1p each 275,852,371 142,519,038
Issued in year:
Ordinary shares of 0.1p 125,000,000 133,333,330
Total ordinary shares of 0.1p in
issue 400,852,371 275,852,371
------------- ------------
Deferred shares of 0.9p in issue 287,144,228 287,144,228
Deferred shares issued of 0.9p - -
------------- ------------
Total deferred shares of 0.9p in
issue 287,144,228 287,144,228
------------- ------------
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHSED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
Equating to: 30 September 31 March
2023 2023
GBP'000 GBP'000
Ordinary shares 276 143
Deferred shares 2,584 2,584
Iss ued in period - ordin ary s h
a res 125 133
Issued in period - deferred shares
------------- ---------
2,985 2,860
------------- ---------
Authorised Share Capital 30 September 31 March
2023 2023
GBP'000 GBP'000
Called up share capital 2,985 2,860
Share premium 3,476 3,485
Loan notes equity reserve 107 107
For the purposes of preparing the consolidated interims for the
Group, share capital represents the nominal value of the issued
share capital of 0.1p per share (2022:0.1p per share). Share
premium represents the excess over nominal value of the fair value
consideration received for equity shares net of expenses plus
deferred shares of 0.9p after issued share capital of 1p
On 12 September 2023, the Company issued 125,000,000 new
ordinary shares at 0.1p fully paid up in cash at 0.1p per share
under a placing which was announced on 18 August 2023, raising
GBP125,000 before expenses.
On the 31 July 2022 the Company agreed with Mr C C Johnson a
consolidation and variation of terms of the two unsecured
convertible loan notes and direct debt held by him. The conversion
of the total amount owed to him by the Company (GBP905,000) has
resulted in the issue to Mr C C Johnson of a new unsecured
conversation loan note for an aggregate amount of GBP905,000,
expiring 31 July 2024.
The new unsecured convertible loan note is convertible in full
into 226,250,000 ordinary shares of 0.4p per ordinary share and can
be converted by Mr Johnson, subject inter alia to his entire
holding being less than 29.99 per cent of the voting rights in
issue in the Company.
The new unsecured convertible loan note carried the right upon a
conversion, to the grant of warrants to subscribe for ordinary
shares on a one for one basis, exercisable at the conversion price
for a period of two year from the date of grant.
Loan note equity reserve is the amount that has been provided
for in respect of the difference between the cash value and
liability element of the loan notes.
The convertible loan notes have been accounted for as having
both a debt and an equity element. This results in the creation of
a loan note equity reserve at the point of issue. This loan note
equity reserve is the difference between the loan note value
received by the company of GBP905,000 (2022 GBP800,000) and the
fair value of a debt only instrument with a 10% imputed interest
rate and a final settlement figure of GBP905,000 in July 2024. This
10% imputed interest rate of GBP38,643 (2022: GBP24,242), is
managements' best estimate as to the interest rate that would be
expected from the market for an unsecured loan of GBP905,000
without a conversion element.
Defer red sh a res do n ot entitle the h old er to r eceive
notice of and to attend or v o te at a ny gener al meeting of the C
o m pany or to receive div i den ds or other distrib u tio n s. U
pon win ding up or dis s olu tion of the C o m pany the h o l d e
rs of defer r ed shares shall be entitled to r eceive an am o unt
eq ual to the n o minal am ou nt paid up th e r e o n, b ut o nly
after h o l d e rs of o r din a ry shares have r eceived GBP10 0 ,
0 00 p er o r dinary share. H o l d ers of def e r red sh a res are
not entitled to any further rights of participation in the assets
of the Company. The Company has the right to purchase the deferred
shares in issue at any time for no consideration.
TRAFALGAR PROPERTY GROUP PLC
CONSOLIDATED UNAUDITED INTERIM RESULTS FOR THE
SIX MONTHS ENDED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
8. SHARE WARRANTS
Share warrants as at the year end relate to the convertible loan
note with Mr C C Johnson, details of this arrangement are given in
Note 7 to these accounts.
9. CAPITAL CONTRIBUTION RESERVE
The capital contribution reserve of GBP400,147 related to the
renegotiation of interest accruing on loans to Mr G Howard - a
related party on the year to 31 March 2023. Interest has reduced
from 10% pa to 5% pa for the entire term of the loans and is now
non compound. However, interest has been paid on one loan of
GBP100,000 at the rate of 10% pa and this has not been affected and
continues to be paid monthly.
10. SUBSEQUENT EVENTS
There are no subsequent events to date.
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END
IR DZMMZVKNGFZM
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