Eatonfield still seeking more disposals

EATONFIELD Group, the troubled Tarporley property developer, has reported a lift in revenue due to property sales but is still burdened by big debts.

The group reported sales of £3.26m in the six months to December, up 20%. Pre-tax losses narrowed to £2.3m, down from £6.4m.

Eatonfield raised some £2.6m by building and selling new housing, and a further £300,000 from the disposal of commercial property in Yorkshire. It also sold three apartments in North Wales, raising £400,000.

But net debt continued to rise, up 6% to £26.9m as overheads and interest payments of £680,000 during the period cancelled out any gains from the disposals.

Chairman Brian Corfe said the firm is continuing to defer payments to senior lenders and creditors but is close to completing another land asset.

He added: “The board continues to negotiate with the group’s bankers with a view to procuring their consent to the proposed sale of the Welsh land portfolio. The board is seeking to conclude these negotiations within the next two weeks, following which we plan to begin raising further equity. The board also confirms that all the group’s existing bank facilities remain available at the date of this announcement.”