Board changes and director loan rescheduling

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.

10 May 2019

TRAFALGAR PROPERTY GROUP PLC

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

Board changes and director loan rescheduling

The Board of Trafalgar (AIM: TRAF), the AIM quoted residential and assisted living property developer,

has today received notice from Chris Johnson, the CEO, and Alex Johnson, Executive Director, of their intention to step down as directors of the Company.  As the Group's increasing focus is on its assisted living retirement business, Chris and Alex are stepping down from the board to focus on their roles at the Group's residential property subsidiary, Trafalgar New Homes Limited ("TNH"), of which they will remain directors.

Chris and Alex will remain directors of the Company until replacement directors are appointed to the Company's board. New directors have been identified and the Company will be seeking for their appointment as soon as possible once, inter alia, terms are agreed and customary regulatory due diligence is completed. A further announcement will be made in due course.

As a shareholder of approximately 43.9 per cent. of the Company's issued share capital, Chris Johnson has confirmed to the Company that he has no intention of selling any shares in the Company for the foreseeable future and that he will remain bound by the relationship agreement with the Company dated 27 June 2013. 

In addition, Chris Johnson has confirmed that, if required by the Company, he will continue to provide financial support through the loan facility he provides to TNH, details of which were set out in the Company's announcement of 31 August 2018 (the "TNH Loan"). On 31 August 2018 the repayment date of the TNH Loan was extended to 30 September 2019 and Mr Johnson has today agreed to extend the repayment date further to 31 May 2020. The outstanding balance on the TNH Loan currently stands at £2,225,358 and TNH will make repayments or drawings on the TNH Loan periodically, depending on its working capital requirements.

The amendment to the repayment date of the TNH Loan is a related party transaction under the AIM Rules for Companies.  Accordingly, the directors of the Company independent of the transaction (being James Dubois and Norman Lott) consider, having consulted with the Company's Nominated Adviser, Allenby Capital Limited, that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned. 

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