Trafalgar Prop Share News (TRAF)

LONDON (Alliance News) - Trafalgar Property Group PLC said Monday its financial 2019 was "exciting" as it progresses plans on the development of its assisted living schemes.

The residential homes and assisted care development company focused on the south east of England expects its pretax profit for the year ended March 31 to be about GBP500,000 on revenue of about GBP2.1 million.

In its financial 2018, the company delivered pretax loss of GBP414,376 and a revenue of GBP906,484.

Trafalgar said it spent 2018 developing its four sites under ownership in Kent.

The company's Saxons property, in Speldhurst, seen "some positive news" in 2018 as a sale has been agreed for GBP1.6 million, which is expected to "proceed with expedition".

Trafalgar's property in Burnside Court, Tunbridge Wells, that was under offer in December 2018 has been sold, leaving only three units at the property to be sold. The company said no offers have been made "despite the fact that prices were reduced and multiple sales agents used".

The company said it is in negotiations to sell three properties at its Vines Lanes in Hildenborough development. One of the parties negiotiating with the company is Trafalgar Property Chief Executive Chris Johnson.

"No binding agreement has been entered into. As is the board's practice, an independent valuation of the properties will be completed before any transaction proceeds. A further announcement will be made in due course," the company said.

Trafalgar said it is making "rapid progress" on the construction of its Wellesley Road, Sheerness, site. The completion date for the six houses in expected to be July.

Chair James Dubois said: "These are exciting times for Trafalgar as the company re-positions itself to take advantage of the significant opportunities open to it."

It has not been all good news, however. Trafalgar noted its previously announced bond issue "has not delivered investment into the company but remains open for the time being".

The residential and assisted living property developer said it will release its results for the year ended March 31 in the third quarter of calendar 2019.

The company expects to "improve substantially" in the current year.

Trafalgar has received planning permission for a site in Ewell, Surrey and has accepted an offer to sell rather than building the development. The company said it expects to make an immediate profit of about GBP300,000.

"The group also has the potential benefits of selling other sites that it holds under option for which the group is currently applying for planning permission and the directors are confident that such sales would be at a profit and generate attractive cashflow into the group," the company added.

Shares in Trafalgar Property were down 3.2% Monday at 0.65 pence each.