On behalf of the Board, I present Trafalgar Property Group's results for the year ended 31 March 2019 which show five property sales were recorded in the year. The overall result was very disappointing, as can be seen in the attached Accounts and Strategic Report.
We will continue to explore the potential for acquiring new sites that should produce increased turnover and a return to profit.
The year under review saw Group turnover at £2,123,500 (2018: £906,484), with a loss after tax of £2,296,422 (2018: Loss £424,903), after taking into account exceptional items as detailed in note 19 to the accounts.
Management have performed a review of the assets and liabilities of the underlying subsidiaries which form the value of the anticipated profits on ongoing developments. In addition, the value of land options in Trafalgar Retirement + have been reassessed. At the time of approval of the financial statements there is no confirmed planning permission on these land options.
Due to the uncertainties and timing of developments it has been agreed by management not to include any future anticipated profits of developments in their assessment. Therefore the net asset value of the underlying investments does not support the Trafalgar Property Group's carrying value of investments in the subsidiaries.
Management have concluded that an impairment of the investments is prudent and that these will be written down to zero, resulting in an exceptional charge of £1,559,319.
The cash on the balance sheet at the end of the year was £32,800 (2018: £458,209) and the Group continues to have sufficient bank facilities for all planned activities.
Business Environment and Outlook
Our recent move into the assisted living sector gives us an opportunity to expand into fresh areas of residential units where we see an enormous demand, especially in the South-
On 27th May, 2019 Chris Johnson and his son Alex Johnson stepped down from the Group Board, although they remain involved on a consultancy basis. On the same day, Paul Treadaway was appointed as the new Group Managing Director which strengthens the Board with his particular expertise being in the sector for assisted living developments. This retains a good balance of complementary skills on the Board. We are currently progressing offers of finance alongside our planning applications so that we should be well placed to commence our developments as soon as planning permits.
I would refer you to Paul Treadaway's Strategic Report that covers our activities in more detail.
27th September 2019
Annual report & consolidated financial statements 2019