Trafalgar New Homes (LON:TRAF) is a recent addition to the Alternative Investment Market and focuses on developing residential property in the South East of England, mainly targeting the markets of Kent, Surrey, Sussex and the M25 ring south of London.
Trafalgar New Homes who aim to pay a dividend in respect of the financial year ending 31 March 2014, is steered by farther and son team Chris and Alex Johnson, and began trading on AIM on the 16 July 2013. The Trafalgar New Homes model is geared towards acquiring land for development and then outsourcing the design, planning and build process to third-party contractors on a fixed price basis, focusing efforts on residential property ranging from £100,000 to £750,000 per unit. Trafalgar management are looking to position the company as an investment case between the small unlisted builder and the likes of the big developers such as Taylor Wimpey (LON:TW.) Barratt Developments (LON:BDEV) and Redrow (LON:RDW)
Following its AIM listing and ahead of the interim report, Chris Johnson the Trafalgar New Homes Chief Executive Officer, has taken time out to discuss various aspects of the business, including, the business model, the housing market, ‘help-to-buy’ schemes, development projects and future potential.
Q1. Briefly, could you set the scene with a bit of background on Trafalgar New Homes and its management team?
Trafalgar New Homes plc is an AIM quoted (TRAF) residential development company. In January 2007 Alex Johnson, my son, and I founded Combe Bank Homes Ltd., which focused on residential developments in the South East of England. In November 2011, we reversed the Combe Bank Homes business into PLUS-quoted Trafalgar New Homes plc. Trafalgar New Homes was incorporated on the 14th December 2001 in England and Wales as a public limited company to engage in home building and property development but encountered financial difficulties therefore we used this reverse-takeover opportunity to publicly list our business. In July 2013, the new Trafalgar New Homes was admitted to trading on AIM.
The TRAF management team has considerable experience of the South East housing market. I am a qualified solicitor and have been a board member of various quoted house building companies during my career. In the 1990s I established Propan Homes which was floated on…
