LONDON (Alliance News) - Shares in residential property developer Trafalgar New Homes PLC dropped early Tuesday after it posted a big decline in revenue and swung to a loss in the first half due to a dearth of new homes available for sale.
The stock was down 19% to 0.69 pence on Tuesday morning, one of the worst performers in the AIM All-Share.
Trafalgar's pretax loss for the half to the end of September was GBP168,000, compared to a GBP35,000 profit made a year earlier, as revenue declined to GBP531,000 from GBP2.2 million, reflecting the final sale of homes at the Oakhurst Park Gardens development in Kent.
The loss was driven by the company's costs against the lower revenue and the repayment of a loan taken out against the Kent development.
Trafalgar said it is continuing to work on its existing developments in East Sussex and Kent, both of which are close to completion. Construction work is also underway at its Tunbridge Wells project and it is due to start work on further projects in Kent.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Trafalgar Prop (TRAF)