NOTES TO THE FINAL ACCOUNTS for the year ended 31 March 2019

1. SEGMENTAL REPORTING

For the purpose of IFRS 8, the chief operating decision maker (“CODM”) takes the form of the Board of Directors. The Directors’ opinion of the business of the Group is as follows.

The principal activity of the Group was property development. All the Group’s non-current assets are located in the UK.

Based on the above considerations, there is considered to be one reportable segment. The internal and external reporting is on a consolidated basis with transactions between Group companies eliminated on consolidation. Therefore the financial information of the single segment is the same as that set out in the consolidated statement of comprehensive income, the consolidated statement of changes in equity, the consolidated statement of financial position and cashflows.

Revenue

An analysis of revenue is as follows:

The Group’s revenue, which is all attributable to their principal activity, can be split as follows:

2. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME

3. LOSS FOR THE YEAR

The Group’s loss for the year is stated after charging / (crediting) the following:

Amounts payable to Crowe Clark Whitehill LLP and its related entities in respect of audit and non-audit services are disclosed in the table above.

4. EMPLOYEES AND DIRECTORS’ REMUNERATION

Staff costs during the year were as follows:

The average number of employees of the company during the period was:

Key management are the Group’s directors. Remuneration in respect of key management was as follows:

There are retirement benefits accruing to Mr C Johnson for whom a company contribution was paid during the period of £18,000. (2018: £18,000) and Mr A Johnson £1,200 (2018: £600).

Consultancy fees of £4,994 (2018: £4,994) were paid to Mr N Lott during the year.

5. INTEREST PAYABLE AND SIMILAR CHARGES

During the year all interest paid on borrowings relating to ongoing developments was capitalised as part of inventory £183,217 (2018: £324,555) with the interest capitalised on properties sold in the year forming part of cost of sales and transferred to profit & loss accordingly.

For sites where the construction had been completed, the interest paid of £145,434 (2018: £18,727) has been accounted for in the profit & loss within cost of sales together with an impairment provision of £126,661 (2018: Nil) on account of the reduction of likely selling prices being achieved since the year end.

6. TAXATION

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Deferred tax

The deferred tax liability recognised in 2018 of £291,045 to reflect timing differences on the future tax liability arising as a result of the uplift in the fair value of the options acquired as part of the Trafalgar Retirement + acquisition has been reverse due to the impairment review performed by management. (Note 19)  (Note 8 of the Parent Company’s financial statement.)

No deferred tax asset has been recognised in respect of historical losses due to the uncertainty in future profits against which to offset these losses. As at the 31 March 2019, the group had cumulative tax losses of £3,364,609 (2018: £2,634,086) that are available to offset against future taxable profits.