17th Aug 2016 08:19
LONDON (Alliance News) - Trafalgar New Homes PLC on Wednesday said revenue and pretax profit for its current financial year will be lower than market expectations, as it anticipates the sale of its substantial property in Kent to complete after the year-end.
The residential property developer operating in southeast England had been expecting to secure an off-plan sale for its "new substantial detached house" in Speldhurst, Kent prior to March 31, 2017, when the current financial year ends, meaning it would be recognised for the current year.
However, on Wednesday, Trafalgar Homes said it has changed its accounting policies in line with the updated accounting standards so that property sales are only recognised upon completion of the contract rather than on the exchange.
Trafalgar said build work for the house is expected to be completed in the spring of 2017 with a sale expected to complete during the summer of 2017.
Shares in Trafalgar were down 15% at 0.910 pence on Wednesday.
By Hannah Boland; [email protected]; @Hannaheboland
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