LONDON (Alliance News) - Trafalgar New Homes PLC Friday said its pretax loss widened in its recently-ended financial year, although revenue rose, as it experienced delays at its Oakhurst Park Gardens development in Kent.
The company reported a pretax loss of GBP619,106 in the year March 31, double the GBP305,049 loss it made the year before. However, revenue grew to GBP3.9 million from GBP3.4 million.
Trafalgar said it experienced delays and cost over-runs on the completion of the Oakhurst Park Gardens development in Kent, incurring a substantial increase in construction costs due to the liquidation of the building contractor, and an increase in financing costs due to time delays. The banking finance cost for the development amounted to around GBP1.3 million, considerably greater than Trafalgar had anticipated.
"Additional land has been acquired to enable our development programme, as the group seeks to return to profitability in 2016 and 2017. We are currently building at Ticehurst and Borough Green and we have two further development sites about to start," Chairman James Dubois said in a statement.
"Now that the election has passed, we are looking forward to a period of sustained stability for the residential property market. The board believes we are well positioned to undertake some selected profitable developments over the next few years," he added.
Shares in Trafalgar closed down 6% at 0.776 pence on Friday.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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