Trafalgar Prop Regulatory News (TRAF)

Prior to publication, the information contained within this announcement was deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR"). With the publication of this announcement, this information is now considered to be in the public domain.

29 April 2019

TRAFALGAR PROPERTY GROUP PLC

("Trafalgar", the "Company" or "Group")

Year end trading update

Trafalgar (AIM: TRAF), the AIM quoted residential and assisted living property developer, provides an update on its property and development portfolio and trading for the financial year ended 31 March 2019.

During the financial year the Group has been engaged in progressing plans for the development of assisted living schemes and completing the development and sales of the four sites under ownership in Kent, as follows:

On Saxons, Speldhurst, a substantial detached house, the new financial year has brought some positive news as a sale has now been agreed for £1.6m and as this purchaser does not need to sell a property, the transaction is expected to proceed with expedition.

The property at Burnside Court, Tunbridge Wells that was under offer in December 2018 was sold, leaving the remaining three units (flats 2, 3 and 5) to be sold. Regrettably, no offers have been forthcoming despite the fact that prices were reduced and multiple sales agents used.

Negotiations are in hand for the sale of these three properties together with the one remaining detached house at Vines Lane, Hildenborough, to property investors, one of whom is Chris Johnson, the CEO of the Company. 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.

At Wellesley Road, Sheerness, rapid progress is now being made on the construction side with a new contractor following the sad death of the previous builder. The completion date of the six houses is now anticipated to be July 2019.

On 21 December 2018 the Company announced plans to seek to raise funds through a bond issue. To date this initiative has not delivered investment into the Company but remains open for the time being.

Draft figures for the financial year ended 31 March 2019 show a cash position at the year end of £12,000 and as set out below and above, the Board is confident of significant cash receipts from its property investments in this first quarter and the rest of the financial year to 31 March 2020.

Draft figures for the year to 31 March 2019 indicate a loss before and after tax in the region of £500,000 on gross revenue of approximately £2.1 million. We expect this position to improve substantially in the current trading year for the reasons below.

The Group has recently received planning permission on a small site in Ewell, Surrey and has accepted an offer to buy its interest for an immediate profit of approximately £300,000 rather than to build-out the development. This should be received in the first quarter.

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.

In Trafalgar Retirement+, as announced last week the Group has exchanged contracts on the purchase of an assisted living development in Camberley, which is an exciting project and estimated by the Group to generate a gross development value of £15m to £21m depending on how much the Group can improve on the existing planning permission.

The Group retains an option over a site in Staplehurst, Kent, where a formal planning application has been lodged and is being processed. The application is for the consent to develop the site for an assisted living retirement scheme with 80 cottages and apartments, together with communal 'hub' and ancillary facilities.

The Group continues to appraise and negotiate on a number of other development site opportunities, primarily for assisted living development schemes.

The Company expects to announce its audited financial results for the year ended 31 March 2019 in the third quarter of 2019.

Commenting on the trading statement, James Dubois, Chairman, said: "These are exciting times for Trafalgar as the company re-positions itself to take advantage of the significant opportunities open to it."

Enquiries:

Notes to Editors:

Trafalgar Property Group plc

Trafalgar Property Group plc is the holding company of two operating companies, Trafalgar Homes Limited, an established residential property developer operating in the southeast of England, and Trafalgar Retirement+ Limited, which is focussed on assisted living and extra care developments for the elderly. The founders of both subsidiaries have long track records in their respective specialist property disciplines.

The Company's focus is on the select acquisition of land for residential and assisted living / extra care 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.

Trafalgar Retirement+ (formerly named Beaufort Homes, a retirement living property specialist developer, prior to its acquisition by Trafalgar in March 2018) is seeking to capitalise on the burgeoning demand for retirement properties within the South East of England and particularly vis-a-vis the assisted living segment.

For further information visit www.trafalgarproperty.group