For the purpose of this report, the terms “we” and “our” denote MHA MacIntyre Hudson in relation to UK legal, professional and regulatory responsibilities and reporting obligations to the members of Trafalgar Property Group plc. For the purposes of the table on pages 14 to 15 that sets out the key audit matters and how our audit addressed the key audit matters, the terms “we” and “our” refer to MHA MacIntyre Hudson. The Group financial statements, as defined below, consolidate the accounts of Trafalgar Property Group plc and its subsidiaries (the “Group”). The “Parent Company” is defined as Trafalgar Property Group plc. The relevant legislation governing the Parent Company is the United Kingdom Companies Act 2006 (“Companies Act 2006”).

Our opinion

We have audited the financial statements of Trafalgar Property Group plc for the year ended 31 March 2021.

The financial statements that we have audited comprise:

• Group Income Statement and Statement of Comprehensive Income.

• Group and Company Statements of Financial Position

• Group and Company Statements of Changes In Equity

• Group Statements of Cash Flows

Notes 1 to 21 of the consolidated financial statements, including the accounting policies & notes 1 to 14 of the parent company financial statements, including the accounting policies.

The financial reporting framework that has been applied in their preparation is applicable law and international accounting standards in conformity with the requirements of the Companies Act 2006.

In our opinion, the financial statements:

• give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 March 2021 and the Group’s loss for the year then ended.

• have been properly prepared in accordance with UK adopted international accounting standards and international accounting standards in conformity with the requirements of the Companies Act 2006 and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Our opinion is consistent with our reporting to the Directors.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard as applied to listed entities, and we have fulfilled our ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw your attention to the going concern section of the accounting policies in the financial statements which states that the Group incurred substantial losses during the year and the continued requirements for successful future equity or debt fund raising. The impact of this together with other matters set out in the note, indicate a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Our evaluation of the Directors’ assessment of the Group and Parent Company’s ability to continue to adopt the going concern basis of accounting included:

• The consideration of inherent risks to the Company’s operations and specifically its business model.

• The evaluation of how those risks might impact on the Company’s available financial resources.

• Where additional resources may be required the reasonableness and practicality of the assumptions made by the Directors when assessing the probability and likelihood of those resources becoming available.

• Liquidity considerations including examination of cash flow projections.

• Solvency considerations including examination of budgets and forecasts and their basis of preparation, including review and assessment of the model’s mechanical accuracy and the reasonableness of assumptions included within.

• Consideration of availability of funds required to settle funding facilities due for repayment during the going concern review period. Assessing the reasonableness and practicality of the mitigation measures identified by management in their conservative case scenario and considered by them in arriving at their conclusions about the existence of any uncertainties in respect of going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Annual report & consolidated financial statements 2021







Our application of materiality

Our definition of materiality considers the value of error or omission on the financial statements that, individually or in aggregate, would change or influence the economic decision of a reasonably knowledgeable user of those financial statements. Misstatements below these levels will not necessarily be evaluated as immaterial as we also take account of the nature of identified misstatements, and the particular circumstances of their occurrence, when evaluating their effect on the financial statements as a whole. Materiality is used in planning the scope of our work, executing that work and evaluating the results.

Materiality in respect of the Group was set at £58,500 (2020: £68,000) which was determined based on 2% of gross assets in both years. Gross assets were deemed to be the most appropriate metric for materiality as this is primarily what the users of the financial statements are concerned with.  

Performance materiality is the application of materiality at the individual account or balance level, set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality for the financial statements as a whole.

Performance materiality for the Group was set at £35,100 (2019: £40,800) which represents 60% (2020: 60%) of the above materiality levels.  

We agreed to report any corrected or uncorrected adjustments exceeding £2,925 to the directors as well as differences below this threshold that in our view warranted reporting on qualitative grounds.  

The scope of our audit

Our Group audit was scoped by obtaining an understanding of the Group and its environment, including the Group’s system of internal control, and assessing the risks of material misstatement in the financial statements. We also addressed the risk of management override of internal controls, including assessing whether there was evidence of bias by the directors that may have represented a risk of material misstatement.

The Group consists of 6 reporting components all of which were considered to be significant components of the Group, Trafalgar Property Group Plc, Trafalgar New Homes Limited, Trafalgar Retirement + Limited, Combe Bank Hones (Oakhurst) Limited, Combe Homes (Borough Green) Ltd and Selmat Limited. The significant components were subjected to full scope audits for the purposes of our audit report on the Group financial statements.

Reporting on other information

The other information comprises the information included in the annual report other than the financial

statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Overview of our audit approach

Key audit matter description

The Group enters into a significant number of transactions with related parties, both intra-group transactions and with individuals related to the Group. There is a risk that transactions (particularly any transactions which are not at arm’s length) and balances with related parties are undisclosed.  

Undisclosed Related Party Transactions

Results of our procedures

We concluded that the classification and disclosure of related party transactions is complete and appropriate.




2% of gross assets

2% of Gross Assets

Key Audit Matters

Key Audit Matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These matters included those matters which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the efforts of the engagement team and, as required for public interest entities, our results from those procedures. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

How the scope of our audit responded to the key audit matter

Our procedures included an assessment of the presentation of related party transactions in the financial statements, this focused primarily on the Directors loan accounts.

We reviewed movements on these balances in the year and vouched items to supporting evidence.

We discussed with management the nature and purpose of these items and considered whether disclosure sufficiently addressed these matters.

In addition, we obtained written confirmations of the balances from all disclosed parties and confirmed key terms to agreements.  


Key observation

We concluded that the classification and disclosure of related party transactions is complete and appropriate.  


Key audit matters

For page 2, click HERE