Pretax profit at Trafalgar New Homes has falled in the first half due to increased costs of completing Oakhurst Park Gardens development in Kent
However, the group also announced this morning those problems are now behind it allowing it to focus on a growth strategy.
The residential property developer, which develops homes through its Combe Bank Homes, saw the costs of the Oakhurst Park development rise way above budget after it suffered planning and construction delays, with the contractor doing the work going into liquidation meaning it had to employ third-party contractors and sub-contractors. Finance costs also rose because of the delays, because the company had to re-finance beyond the expiry of the funding arrangement that was in place.
Trafalgar New Homes said its revenue in the six months to end-September more than doubled to £2.2m, from £864,000 a year earlier, as it sold four houses on the Oakhurst Park Gardens development.
However, the extra costs of finishing the site meant its pretax profit fell to £35,281, from £101,000.
Trafalgar chief executive Chris Johnson said “Since the period end, two of the remaining four houses have been sold and with the final two properties now under offer we are confident all houses at the development will be disposed of during the current financial year.”
“With the problems associated with the Oakhurst development now behind us, we are able to move forward with the company’s growth strategy through land developments and land and corporate acquisitions. Construction is underway on our sites at Ticehurst, East Sussex and Borough Green, Kent and these two sites are expected to contribute to turnover for the current financial year.”