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 tables below that set 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”).


We have audited the financial statements, for the year ended 31 March 2022, which comprise:

• the consolidated statement of comprehensive income;

• the consolidated statement of financial position;

• the consolidated statement of changes in equity;

• the consolidated statement of cash flows;

• the notes to the consolidated financial statements;

• the Company statement of financial position;

• the Company statement of changes in equity; and

• the notes to the Company statements 1 to 15

The financial reporting framework that has been applied in the preparation of the Group’s financial statements is applicable law and [International Financial Reporting Standards and Interpretations (“collectively IFRSs”) as adopted in the United Kingdom (“UK-adopted IFRS”)]. The financial reporting framework that has been applied in the preparation of the Parent Company’s financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion:

• the financial statements give a true and fair view of the state of the Group’s and the Parent Company’s affairs as at 31 March 2022 and of the Group’s loss for the year then ended;

• the Group financial statements have been properly prepared in accordance with applicable law and United Kingdom adopted International Financial Reporting Standards (UK Adopted IFRS);

• the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

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 and the Parent Company 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 other ethical responsibilities in accordance with these 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 requirement 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 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 entity’s ability to continue to adopt the going concern basis of accounting included:

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

• The evaluation of how those risks might impact on the Group’s and parent company’s available financial resources.

• Review of the mathematical accuracy of the cashflow forecast model prepared by management and corroboration of key data inputs to supporting documentation for consistency of assumptions used with our knowledge obtained during the audit.

• Challenging management for reasonableness of assumptions in respect of the timing and quantum of cash receipts and payments included in the cash flow model.

• 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.

• Holding discussions with management regarding future financing plans, corroborating these where necessary and assessing the impact on the cash flow forecast.

• Evaluating the accuracy of historical forecasts against actual results to ascertain the accuracy of management’s forecasts.

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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 2022



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 or misclassified.  


Undisclosed Related Party Transactions

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 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.

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. We have determined the matters described below to be the Key Audit Matters to be communicated in our report.

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

The overall materiality that we used for the Group financial statements was £35,800 (2021: £58,500), which was determined as 2% of gross assets (2021: 2% of gross assets).

The overall materiality for the Parent Company financial statements was £19,500 (2021: £22,000), which was determined as 2% of gross liabilities (2021: 2% of gross liabilities).

Performance materiality was set at 60% (2021: 60%) of materiality for both the Group and Parent.   

Our audit was scoped by obtaining an understanding of the Group, including the Parent Company, 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 six reporting components, of which two were considered to be significant components: Trafalgar Property Group plc and Selmat Limited. The significant components were subjected to full scope audits for the purposes of our audit report on the Group financial statements.

Material subsidiaries were determined based on:

1) financial significance of the component to the Group as a whole, and

2) assessment of the risk of material misstatements applicable to each component.


Our application of materiality

The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually and in aggregate on the financial statements as a whole.

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

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• Undisclosed related party transactions