TRAFALGAR House has declared a year-end net loss of GBP366.8 million (about HK$4.22 billion) against GBP66 million for the previous year, after embarking on a major round of asset write-downs, property provisions and rationalisation. It has also unveiled details of its proposed GBP425 million rights issue and placement, with major new banking and bond facilities - moves by the new-look Trafalgar House board to breathe fresh life into the group's battered balance sheet. Group chief executive Allan Gormly said: ''The successful completion of the proposed major financing will reinforce Trafalgar House as one of the world's strongest engineering and construction groups, and will provide financial resources to maintain ourinterests in property and leisure.'' An operating profit of GBP77.5 million for the year to September 30 was more than wiped out by a long list of exceptional items totalling GBP397.3 million. This included provisions of GBP100 million announced with the group's interim results in May. The result was a year-end loss per ordinary share of 47.6 pence, compared with 12.2 pence a share in 1992. Turnover was steady at GBP3.88 billion for the second successive year. As expected, the board has proposed a second-half dividend of two pence per ordinary share. This brings the final dividend for the year to 3.25 pence a share, compared with six pence last year, with a final dividend of not less than one pence a share being predicted for 1994. Hongkong Land, the dominant minority shareholder in Trafalgar House with a 25.28 per cent stake, has decided to pay for most of its share of the exceptional items from its reserves as a goodwill gesture, following its hostile takeover of control last year. It will charge its share of the exceptional items relating to Trafalgar House's floating oil production facility, Emerald Producer, and certain rationalisation costs, to the profit and loss account. This will result in an after-tax charge of US$24 million to Hongkong Land's profit and loss account. Of the remaining exceptional items of GBP316 million, Hongkong Land will take its share, about US$120 million, direct to reserves for this year. Hongkong Land group managing director Alasdair Morrison said this would have little impact on the cash-rich group's reserves. The group boasted shareholders' funds of US$5.1 billion at the end of the 1992 financial year. ''We fully support the decision by the board of Trafalgar House to strengthen the company's balance sheet, which will provide a solid base for the development of its world-class engineering and construction business,'' he said. The Trafalgar House acquisition, he said, was a long-term strategic move that would pay dividends before long. John Fletcher, director of business development and marketing at Trafalgar House, said he would be very surprised if the group did not produce profits from now on. To provide needed funds for future expansion, a rights issue and placement of convertible preference shares has been proposed, to raise about GBP404 million net of expenses. The proposed three-for-one rights issue, subject to a shareholders meeting on January 7, will be for 354.9 million convertible preference shares available to qualifying shareholders at 100 pence each. Hongkong Land yesterday said it would take up its full entitlement, worth GBP90 million, in cash. The rights issue will be underwritten by Swiss Bank Corp and Robert Fleming. There will also be a general placement of a further 70 million convertible preference shares at 100 pence each. Hongkong Land also intends to apply for these, but will get no preferential treatment. The convertible preference shares will pay a dividend of six pence a year, with the first dividend payable on January 31, 1995. Meanwhile, the board has obtained from Midland Bank, an HSBC Holdings subsidiary, a GBP200 million facility and additional bonding facilities of GBP100 million. ''With the benefit of these facilities and the support of other lenders, and the group's strengthened capital base following the rights issue and placing, the board intends to restructure further its borrowing and bonding facilities on more favourable terms,'' Trafalgar House said.