Page 4

Mr Johnson’s Loan bore interest during the year at 5% (2022: 5% pa), but he has chosen to forego the interest (2022: exception first £ 500,000 of capital upon which interest is paid at 5%). Mr Johnson was due interest of £ nil in the year (2022: £25,000). Mr Johnson is no longer a Director of Trafalgar Property Group Plc, but remains a director of other entities to the Group and remains a shareholder. Mr Dubois’s Loan, which is from his Pension Fund of which he is the sole beneficiary, was paid interest of £1,559 (2022: £12,000) at 12% pa interest (2022: 12% pa). This loan was fully repaid on 16th May 2022.

Mrs S Johnson, wife of Mr C C Johnson had originally provided a loan of £380,000 (2022: £ 380,000) to Selmat, a subsidiary of the Group, which was reduced in the year to £nil, (2022: £33,255) which bore interest of 5% pa, (2022: 5% pa). This has been included within Mr C C Johnson’s loan balance above.

Mr. G. Howard (son-in-law to Mr. C C Johnson) had previously advanced loans of £560,000 (2022: £600,000) to the Company at rates of 10% & 5% per annum (2022: 10% & 5% pa)

During the year rents were paid of £10,000 (2022: £10,000) to the Combe Bank Homes Pension Scheme which owns the freehold offices at Chequers Barn. Mr C C Johnson is a Trustee and Beneficiary of that Pension Scheme.

During the year payments were made to Mr N Lott of £Nil (2022: £2,500) for consultancy services.

During the year payments amounting to £15,900 (2022: £4,250) were made to Real Time Accounting Ltd for bookkeeping services. Gary Thorneycroft is a majority shareholder and director of Real Time Accounting Ltd.

During the year payments amounting to £12,000 (2022: nil) were made to May Barn Horticultural Consultancy Ltd, for hydroponic consultancy services, a company that Dr P Challinor was a director and major shareholder. In addition a new company Life Hydroponic Asset Ltd was incorporated in the year , which then acquired hydroponic assets from Dr P Challinor for £25,000 (2022: nil).

16. SHARE WARRANTS

Share warrants as at the year end relate to the convertible loan note with Mr C C Johnson, details of this arrangement are given in Note 14 to these accounts.

17, CAPITAL CONTRIBUTION RESERVE

The capital contribution reserve of £400,147 (2022: £157,777) related to the renegotiation of interest accruing on loans from Mr G Howard to below market rate terms. Interest was reduced from 10% pa to 5% pa for the entire term of the loans and is now non compound.

As Mr. G Howard is related to Mr. C C Johnson, a related party, a Capital Reserve was created. In the current year, a further provision of £242,370 was recognized as a result of Mr. Howard waiving all interest due on the loan outstanding.

18. CATEGORIES OF FINANCIAL INSTRUMENTS

All financial instruments are measured under IFRS 9 at amortised cost.

Capital risk management

The Group considers its capital to comprise its share capital and share premium. The Group’s capital management objectives are to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits for other stakeholders and to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.

Significant Accounting Policies

Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset, financial liability and convertible debt are disclosed on pages 23 to 31 to these financial statements

Foreign currency risk

The Group has minimal exposure to the differing types of foreign currency risk. It has no foreign currency denominated monetary assets or liabilities and does not make sales or purchases from overseas countries.

Interest rate risk

The Group is sensitive to changes in interest rates where interest is charged on a variable rate basis. This risk has been minimized by:

• the bank loan being repaid in full during the year, which was on a variable rate basis,
• renegotiation of interest rates on some of the other loans from 10% to 5% (all fixed rates),
• partial repayments made in the year on other loans and,
• the Paragon mortgages which are on a fixed rate for the first five years of the seven year term.

The impact of a 100 basis point increase in interest rates on these loans would result in additional interest cost for the year of £nil (2022: £nil).

Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.

Liquidity risk management

This is the risk of the Group not being able to continue to operate as a going concern.

The Directors have, after careful consideration of the factors set out above, concluded that it is appropriate to adopt the going concern basis for the preparation of the financial statements and the financial statements do not include any adjustments that would result if the going concern basis was not appropriate.

Derivative financial instruments

The Group does not currently use derivative financial instruments as hedging is not considered necessary.

Should the Group identify a requirement for the future use of such financial instruments, a comprehensive set of policies and systems as approved by the Directors will be implemented.

15. RELATED PARTY TRANSACTIONS

Mr C C Johnson, a subsidiary Director who served during the year, held 18,681,580 ordinary 0.1p shares in the Group as at 31 March 2023 (2022 18,681,580 ordinary 0.1p).

Mr N Lott, who served as a Director during the year, held 50,000 ordinary 0.1p shares in the Group as at 31 March 2023 (2022: 50,000 ordinary 0.1p).

Mr P Treadaway who served as a Director during the year, held 19,733,466 ordinary 0.1p shares in the Group as at 31 March 2023 (2022: 19,733,466 ordinary 0.1p).

Mr G Thorneycroft who served as a Director during the year, held 600,000 ordinary 0.1p shares in the Group as at 31 March 2023 (2022: 600,000 ordinary 0.1p).

Further details relating to warrants can be found under note 16.

The following working capital loans have been provided by the following:

For Page 1, click HERE

For Page 2, click HERE

For page 3, click HERE

For page 5, click HERE