Trafalgar New Homes PLC Development and trading update (4894X)
February 22 2017 - 2:01AM
UK Regulatory
TIDMTRAF
RNS Number : 4894X
Trafalgar New Homes PLC
22 February 2017
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014
Trafalgar New Homes plc
(the "Company")
Development and trading update
Trafalgar New Homes plc (AIM: TRAF), the residential property
developer operating in southeast England, today provides an update
on the Company's development portfolio and trading for the current
financial year.
Development portfolio
Burnside, Tunbridge Wells, Kent
The build is now complete on this development of six luxury
flats, comprising one 1-bed, four 2-beds and one 3-bed penthouse
apartments, with communal undercroft parking, a lift and community
woodland area. A marketing launch is scheduled for 25 February
2017.
Edenbridge, Kent
The build is almost complete on three 2-bed/2-bath terraced
houses at this site, with carpets and planking going down now and
marketing commencing on 27 February 2017 for a gross sales value of
GBP1,065,000.
Hildenborough, Kent
This development comprises two executive style detached houses.
The build has been delayed beyond management's expectations with
works now expected to be finished by end of March 2017. Marketing
is expected to commence in April 2017 with a gross development
value of approximately GBP1.8 million.
Speldhurst, Tunbridge Wells, Kent
This site comprises one large detached house. The build is
progressing well with completion scheduled for Q3 2017. A buyer has
registered interest and is selling their own property in
preparation to purchase.
Sheerness, Kent
This development, of six terraced houses, is underway and
completion is anticipated in Q4 2017.
Staplehurst, Kent
Planning permission for 24 units is still awaited on this site
and a further application will be made in the coming months.
In addition, the company has a number of additional projects
under consideration in the Kent and East Sussex area.
Current trading
Under the Company's accounting policies, it recognises sales on
completion of a contract, rather than on exchange. The Directors of
the Company had previously anticipated that sales of all units at
the Edenbridge, Burnside and Hildenborough developments would be
completed prior to the end of the current financial year ending on
31 March 2017. However, Edenbridge and Burnside were only recently
ready for sale and therefore it is considered unlikely that any
sale contracts will complete by 31 March 2017. Similarly, with the
build at Hildenborough behind schedule, a sale of those properties
is not expected to complete by 31 March 2017 as previously
anticipated. Accordingly, the timing of sales at these sites will
impact the Company's financial results for the year ending 31 March
2017, with revenue and profit before tax for the year expected to
be materially lower than current market expectations. The sales of
any remaining units at these three sites after 31 March 2017 are
expected to contribute to the Company's financial results for the
year ending 31 March 2018 and the Company aims to achieve these
sales as soon as possible in the new financial year.
Chris Johnson, Chief Executive, commented: "It is pleasing to
report that the selling market has seen an upturn in activity since
the start of February, resulting in a number of timed appointments
to view our Burnside development on launch day.
"In addition, we have an interested buyer for one of the
detached units on our Hildenborough site and pre-launch enquiries
on two of the three units on our Edenbridge site. A potential buyer
has lodged his interest in our executive detached house in the
course of construction at Speldhurst, Tunbridge Wells, Kent.
"It appears that the somewhat moribund market that existed post
the Brexit vote and through to the start of the New Year could now
be behind us."
Enquiries:
Trafalgar New Homes Plc +44 (0)1732 700
Christopher Johnson 000
Allenby Capital Ltd - Nominated
Adviser and Broker +44 (0)20 3328
Jeremy Porter/James Reeve 5656
Yellow Jersey PR Limited +44 (0)7768 537
Dominic Barretto 739
This information is provided by RNS
The company news service from the London Stock Exchange
END
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