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 2024 and are presented in pounds sterling (“GBP”) rounded to the nearest pound. The comparative year is for the year to 31 March 2023.

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 raised £125,000 before costs for working capital purposes by way of an issue of 125,000,000 shares at 0.1p per share, issued 26,000,000 shares at 0.1p to settle outstanding creditor balances and crystalised the 2022 CLN with Mr C Johnson by way of an issue of 226,250,000 shares at 0.4p per share.

The total amount of loans remaining in the Group following the sale of the investment property during the year amounts to £3,415,728 (2023 - £4,447,914) as shown in note 13. Of the balance of the loans remaining outstanding of £3,415,728, a sum of £2,219,818 relates to loans owed to Mr 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.

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. Mr C Johnson has confirmed that he will provide necessary funding to the subsidiary companies as and when required over the next twelve months, should it be required.

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 Mr 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.

We have submitted an application to demolish the existing bungalow and build a scheme of detached houses at the Talbot Park site, acquired shortly after the year end, which should achieve in the region of £950,000 each. We have no build costings as yet but expect to have a decision on the planning by the end of September. It is Officer recommended for approval. Once we have consent we will either be able to seek funding for the build or dispose of the consented development. This project is expected to make additional funds available to the group.

The board are also continuing to consider a reverse takeover as stated in note 20 and have taken a loan from the target company to cover any abort fees should the deal not complete.

However, given that a degree of uncertainty exists in the timing of future sales, the Company’s ability to raise further funds through share placements and the potential reliance on further funding been provided by the directors, there exists a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern.

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:

Amendments to IAS 21 – Lack of Exchangeability

(issued August 2023)

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

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.

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

Amendment to IAS 7 and IFRS 7 – Supplier finance

(issued May 2023)

The amendment is effective for financial years beginning on or after 1 January 2024

The Group considers there will be no material impact on its consolidated financial statements from these amendments.

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