REG - Trafalgar PropertyGp - Half-year Report
15/12/2023 17:00
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20231215:nRSO0443Xa&default-theme=true
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 £nil, (H1 2022: £17,798);
· Gross profit of £nil, (H1 2022: gross profit £17,798), giving a
loss before tax of £214,270 (H1 2022: pre-tax loss: £444,137);
· EPS of (0.07p) (H1 2022 (0.20p); and
· Cash in bank at period end was £237,808 (H1 2022: £152,897); at
11 December 2023 cash at bank was £12,876***
· 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 (http://www.trafalgarproperty.group)
Enquiries:
Trafalgar Property Group Plc +44 (0) 1732 700 000
Paul Treadway
Spark Advisory Partners Ltd - AIM Nominated Adviser +44 (0) 20 3368 3550
Matt Davis
Peterhouse Capital Limited - Broker +44(0)20 7409 0930
Duncan Vasey/Lucy Williams
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 (http://www.trafalgar-new-homes.co.uk/)
www.trafalgarproperty.group (http://www.trafalgarproperty.group) .
TRAFALGAR PROPERTY GROUP PLC
INTERIM REPORT FOR THE SIX MONTHS ENDED 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 £nil and cost of sales was £nil
giving a gross profit for the period of £nil.
Mortgage and private loan interest was paid during the period of £31,589of
which £14,810 was capitalized as part of inventory as relating to the
development at Speldhurst with a further £38,643 of loan note equity interest
being accrued in the period.
The result of the above is a loss before taxation for the period of £214,270.
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 £940,000 before costs.
- A placing of shares was carried out in September 2023 raising a
gross amount of £125,000, 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 MONTHS ENDED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6 month 6 month Year
period ended period ended ended
30 September 2023 30 September 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
Note £'000 £'000 £'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 activities 4 - - -
(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 MONTHS ENDED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
30 September 2023 30 September 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
Note £'000 £'000 £'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
Called up share capital 7 & 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 MONTHS ENDED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share capital Share premium Loan Reverse acquisition reserve Retained profits Capital contribution reserve Total equity
Note equity /(losses)
Reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'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 MONTHS ENDED 30 SEPTEMBER 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
6 month 6 month Year
period ended period ended ended
30 September 2023 30 September 31 March
(Unaudited) 2022 2023
(Unaudited) (Audited)
£'000 £'000 £'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 MONTHS ENDED 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 MONTHS ENDED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
4. TAXATION
6 month 6 month Year
period ended period ended ended
30 September 2023 30 September 2022 31 March
(Unaudited) (Unaudited) 2023
(Audited)
£'000 £'000 £'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 2023 30 September 2022 31 March
(Unaudited (Unaudited) 2023
(Audited)
£'000 £'000 £'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 MONTHS ENDED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
6. INVESTMENT PROPERTIES
FAIR VALUE 30 September 2023 31 March 2023
£'000 £'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 £927,249.
7. SHARE CAPITAL
Authorised Share Capital
30 September 2023 31 March 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 MONTHS ENDED 30 SEPTEMBER 2023
NOTES TO THE FINANCIAL INFORMATION
Equating to: 30 September 2023 31 March 2023
£'000 £'000
Ordinary shares 276 143
Deferred shares 2,584 2,584
Issued in period -ordinary shares 125 133
Issued in period - deferred shares
2,985 2,860
Authorised Share Capital 30 September 2023 31 March 2023
£'000 £'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 £125,000 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
(£905,000) has resulted in the issue to Mr C C Johnson of a new unsecured
conversation loan note for an aggregate amount of £905,000, 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 £905,000
(2022 £800,000) and the fair value of a debt only instrument with a 10%
imputed interest rate and a final settlement figure of £905,000 in July
2024. This 10% imputed interest rate of £38,643 (2022: £24,242), is
managements' best estimate as to the interest rate that would be expected from
the market for an unsecured loan of £905,000 without a conversion element.
Deferred shares do not entitle the holder to receive notice of and to attend
or vote at any general meeting of the Company or to receive dividends or other
distributions. Upon winding up or dissolution of the Company the holders of
deferred shares shall be entitled to receive an amount equal to the nominal
amount paid up thereon, but only after holders of ordinary shares have
received £100,000 per ordinary share. Holders of deferred shares 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 £400,147 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 £100,000 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.
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 (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END IR DZMMZVKNGFZMRecent news on Trafalgar Property
See all newsREG - Trafalgar PropertyGp - Holding(s) in Company
AnnouncementREG - AIM - AIM Notice - 03/04/2024
AnnouncementREG - Trafalgar PropertyGp - Debt Conversion and Convertible Loan Note Issuance
AnnouncementREG - Trafalgar PropertyGp - Result of AGM
AnnouncementREG - AIM Trafalgar PropertyGp - Restoration - Trafalgar Property Group PLC
Announcement