Trafalgar New Homes warns on full year profits

A week after property developer Trafalgar New Homes reported its 2016 results, the company warned that revenue and profit before tax in fiscal year 2017 will be lower than market expectations.

The company said the proceeds from a prospective sale of a lavish detached home in Kent will be recognised in the 2018 financial year rather than the current one, as previously thought.

The building work for the detached house in Speldhurst, Tunbridge Wells in Kent will be completed in spring of 2017 and put on sale by next summer.

The AIM-listed company had expected to secure an off-plan sale for the property and exchange contracts prior to the end of the financial year of 31 March 2017.

It said it had changed its accounting policies in line with updated accounting standards so property sales are only recognised on completion of the contract, rather than on exchange.

The Speldhurst property is expected to complete after the end of the current financial year to 31 March 2017, which will impact revenues.

Shares in Trafalgar New Homes were up slightly by 0.47% to 1.08p at 1105 BST.