GROUP ACCOUNTING POLICIES

BASIS OF ACCOUNTING

These financial statements are for Trafalgar Property Group Plc (“the Company”) and its subsidiary undertakings (‘the Group’). The Company is a public company, limited by shares domiciled and incorporated in England and Wales. (Company number is 04340125). The Company’s registered office is Chequers Barn, Chequers Hill, Bough Beech, Edenbridge, Kent, TN8 7PD.

The nature of the Group’s operations and its principal activities are set out in the Strategic Report

BASIS OF PREPARATION

The Group financial statements have been prepared in accordance with International Financial Reporting Standards as adopted in the United Kingdom (“UK adopted IFRS”) and those parts of the Companies Act 2006 that are relevant to companies which report in accordance with IFRS. These financial statements are for the year ended 31 March 2025 and are presented in pounds sterling (“GBP”) rounded to the nearest pound. The comparative year is for the year to 31 March 2024.

The financial statements have been prepared under the historical cost convention and on an accrual method of accounting, except for certain financial assets and liabilities which are measured at fair value as explained in the accounting policies below.  

AUDIT EXEMPTION OF SUBSIDIARIES

The following subsidiaries are exempt from the requirements of the UK Companies Act 2006 relating to the audit of individual accounts by virtue of s479A of the Act.  

The outstanding liabilities at 31 March 2024 of the above named subsidiaries have been guaranteed by the Company pursuant to s479AC of the Act. In the opinion of the directors, the possibility of the guarantees being called upon is remote.

GOING CONCERN

The Directors have reviewed forecasts and budgets for the coming year, which have been drawn up with appropriate regard for the current economic environment and the particular circumstances in which the Group operates. These were prepared with reference to historical and current industry knowledge, taking into account future strategy of the Group.

During the year the Company crystalised the 2024 CLN with C C Johnson by way of an issue of 226,250,000 shares at £0.00044 per share.

The total amount of loans remaining in the Group at the end of the year amounts to £4,192,791 (2023 - £3,415,729) as shown in note 13. Of the balance of the loans remaining outstanding of £4,192,791, a sum of £2,924,789 relates to loans owed to C C Johnson, plus connected parties, a director of subsidiary companies. The balance of amounts owed were to independent third parties.

The Group continues to utilise banking and other financial institution sources for the financing of its developments, together with significant loans from third party investors as stated in note 13, which is after the disposal of its investment properties, to ensure that there is sufficient money available for the Group to undertake and complete its various developments.

On 28 May 2025, the Group announced that a property at its Speldhurst site had been sold for £715,000. This generated net proceeds of £94,500 following the repayment of associated third party loans and professional fees.

Following the sale of the Speldhurst property after the year end the mortgages have been reduced by £600,000.

After the year end a new funding agreement was reached for the development of the Talbot Park project and the extinguishment of the residual bank loan balance that was due at the reporting date, which is substituted by a longer-term facility.

The Group does not operate an overdraft facility but borrow on a site specific basis from various bankers or financial institutions, with a mix of loans from outside investors geared to some of the development properties and otherwise loaned on a general basis to the Group.

C C Johnson has confirmed that he will provide necessary funding to the subsidiary companies as and when required over the twelve-month period from the date of signature of the financial statements, should it be required. There is no legally binding contract which determines the amount or the timing of any future funding from directors or C C Johnson or that the availability of that funding has been confirmed.

The Board is comfortable with the structure of its finances, which usually involves borrowing a modest sum towards the land purchase for the modest sized residential development schemes, with C C Johnson or the Group putting up the rest of the funds required to acquire the site and the costs associated with the acquisition and then for the bank or financial institution to provide 100% of the build finance.

Following the year end £50,000 was injected into the company by Wager Holdings Ltd, an unconnected company, through a direct subscription of 500,000,000 new ordinary shares at £0.0001 each. This cash was for working capital purposes. In addition, an unsecured CLN for £150,000 has been entered into with Wager Holdings Ltd, which will be available to be drawn down in tranches as and when required to support working capital. At the date of these accounts £100,000 had been drawn down.

However, given that a degree of uncertainty exists in the timing of future sales, the Group’s ability to raise further funds through share placements and the potential reliance on further funding been provided by C C Johnson, the directors or unconnected third parties, there exists a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and hence the Group may be unable to realize its assets and discharge its liabilities in the normal course of business.  

MATERIAL ACCOUNTING POLICIES

REVENUE RECOGNITION

Revenue represents the amounts receivable from the investment in residential property during the year and other income directly associated with property development. This will take the form of rental income and sales of investment property.

Rental income is recognized at the point of receipt being the contractual date in accordance with the tenancy agreements.

Revenue from customers arising from the sales of development property are recognized at the transaction price which reflects the amount of consideration that is expected to be received and is recognized at a point in time when ownership passes to the customer, which in the majority of cases is the point of legal completion of the property sale

The Directors are of the opinion that this accounting policy accurately reflects commercial reality and the recording of revenue for the Group.  

STANDARDS ISSUED BUT NOT YET EFFECTIVE

The following new standards or amendments to existing standards were applicable for the first time and have not had an impact on the financial statements.

New standards, interpretations and amendments:

Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments

(issued May 2024)

The amendment is effective for financial years beginning on or after 1 January 2026.

IFRS 18 Presentation and Disclosure in Financial Statements

(issued April 2024)

This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:

• the structure of the statement of profit or loss;
• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity’s financial statements (that is, management-defined performance measures); and
• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.

The amendment is effective for financial years beginning on or after 1 January 2027.  

IFRS 19 Subsidiaries without Public Accountability: Disclosures

(issued May 2024)

The amendment is effective for financial years beginning on or after 1 January 2027.

The Group does not expect a material impact on its consolidated financial statements form these standards.

Annual improvements to IFRS - Volume 11

(issued July 2024)

The 2024 amendments are to the following standards:

• IFRS 1 First-time Adoption of International Financial Reporting Standards
  IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7
  IFRS 9 Financial Instruments
  IFRS 10 Consolidated Financial Statements; and
  lAS 7 Statement of Cash Flows.

The amendment is effective for financial years beginning on or after 1 January 2026.  

Adoption of the following standards does not have an impact on the consolidated financial statement of the Group:

Amendments to IAS 21 – Lack of Exchangeability

(issued August 2023)

The amendment is effective for financial years beginning on or after 1 January 2025.  

For page 2, click HERE

For page 3, click HERE