Trafalgar New Homes Ltd (formerly Combe Bank Homes) and Trafalgar Retirement+ Ltd (formerly Beaufort Homes) are  trading entities and wholly owned subsidiaries of Trafalgar Property Group Plc .
For information about Combe Bank Homes / Trafalgar New Homes Ltd: www.trafalgarnewhomes.co.uk      For information about Beaufort Homes / Trafalgar Retirement+ Ltd: www.trafalgarretirement.plus


+44 732 700 000

info@trafalgarproperty.group

About us Overview & history Corporate Governance Aim Rule 26 & Investors Strategy & Markets RNS news announcements Share price chart Results & financials Shareholder information Advisers and contacts

Go to our New Homes division:

Go to our Retirement Homes division:

SHARE PRICE:

QCA Code Corporate Governance Statement Disclosures

Corporate Governance Statement



CORPORATE GOVERNANCE

QCA Corporate Governance Code



Disclosures



AIM companies are, with effect from 28 September 2018, required to provide details of a recognised corporate governance code that the board of directors has decided to apply, how the AIM company complies with that code and, where it has chosen to depart from that code, an explanation of the reasons for doing so.

The following information was last reviewed on 27 September 2018.

The Directors have decided to apply the QCA Corporate Governance Code published in April 2018 (QCA Code), which provides that:


The disclosures required under the QCA Code are all set out in (or linked from) this part of the Company’s website.  The Company does not currently intend to include QCA Code disclosures in its annual report and accounts, as it believes it more comprehensible to have them in one location as set out below.  This approach will be kept under review.


The Board considers that the Company’s existing strategy and business model demonstrates its commitment to the QCA Code’s principles underlying delivery of growth and promotion of long-term value for shareholders.  The strategy and business model set out in section 1 below reflect the Company’s approach to the principal risks and challenges that the Company can influence, and recognise those market challenges to which the Company may need to react.

The size of the Company and its shareholder profile has meant that certain of the QCA Code principles have not been the subject to formal procedures.  There is no formal procedure for the Company to obtain feedback from shareholders; the Company is nonetheless receptive to shareholder feedback.  There is no formal evaluation of board performance, but the size of the Company and its internal structures affords sufficient transparency for an informal approach to be taken on these matters.

In relation to the QCA Code, the terms of appointment of the chairman reflect the responsibility to ensure that the principles of corporate governance are adhered to.

The role of the chairman, in addition to that of a non-executive director, is set out in the chairman’s terms of appointment:


In the year ended 31 March 2018 no key governance related matters have occurred, and no significant changes in governance arrangements have occurred:


James Dubois
Chairman



The QCA Code is centred around ten principles identified by the QCA that focus on the pursuit of medium to long-term value for shareholders without stifling entrepreneurial spirit.  Each of these principles is set out below.  The accompanying disclosures set out how the Company complies with these principles and, where relevant, an explanation of the reasons for departing from the QCA Code:

1. Establish a strategy and business model which promote long-term value for shareholders

The Company’s business model and strategy, including key challenges in their execution (and how those challenges will be addressed):

The Company’s business is, through its subsidiaries, to acquire land for development.  Following the acquisition of TR+ in March 2018, the Company has two divisions:


Strategy and business model

Residential developments

Trafalgar New Homes Limited (TNH) identifies suitable sites, mostly through referrals from estate agents, land consultants, contacts in the property development industry, and personal contacts of Directors.  Having acquired properties, the Company then outsources the design, planning and construction process, almost exclusively on a fixed price basis.  The purpose of this is to protect the Group from design and construction risks arising from cost overruns and delays.

TNH recognises that the price paid for sites drives the profitability of each development, and focuses on buying sites with a view to (a) achieving a 20% margin on gross development value and (b) enhancing the planning status where possible.

Residential developments are financed through a mixture of TNH’s own resources, secured banking loans and loans from individuals, primarily Christopher Johnson.  Subject to valuation, TNH’s bankers usually provide at least 60% of the value of the land, and 60% of the build costs.

Assisted living scheme developments

Trafalgar Retirement + Limited (TR+) identifies suitable sites, approaches the owners and seeks to enter into options to acquire sites, subject to gaining appropriate planning permissions.  The option agreements are entered into for a nominal consideration.  This approach aims to minimise financial and other risks to the Group if market conditions falter or if planning permission is not received.

Key challenges and how they are addressed

The key challenges facing this division are considered by the Directors to be:

The steps taken to address certain key challenges are described in section 4 below.  A number of the challenges set out above (including for example housing market conditions and availability of land) are outside the control of the Company, and the Company would have to react to such challenges as they arose.

2. Seek to understand and meet shareholder needs and expectations

How the Company seeks to engage with shareholders and how successful this has been; including information on those responsible for shareholder liaison or specification of the point of contact for such matters:


Given its size and available resources:

3. Take into account wider stakeholder and social responsibilities and their implications for long-term success

How the business model identifies the key resources and relationships on which the business relies:


How the Company obtains feedback from stakeholders and the actions that have been generated as a result of this feedback:

4. Embed effective risk management, considering both opportunities and threats, throughout the organisation

How the board has embedded effective risk management in order to execute and deliver strategy; including what the board does to identify, assess and manage risk and how it gets assurance that the risk management and related control systems in place are effective:

5. Maintain the board as a well-functioning, balanced team led by the chair

Each director who is considered to be independent; including an explanation where there are grounds to question the independence of a director, through length of service or otherwise:

The time commitment required from directors (including non-executive as well as part-time executive directors):

The number of meetings of the board (and of any committees) during the year, with the attendance record of each director:



Board meetings


Audit committee meetings


James Dubois

4

James Dubois

2

Christopher Johnson

4

Norman Lott

2

Alexander Johnson

4



Norman Lott

4



6. Ensure that between them the directors have the necessary up-to-date experience, skills and capabilities

James Dubois:

Christopher Johnson:

Alexander Johnson:

Daniel Stocks:

Norman Lott:


All the Directors are expected to maintain their professional skills as needed and in accordance with the requirements of their professional institutes.

The Board considers that it requires skills and experience from its executive directors covering all practical aspects of property acquisition, development and sales, and knowledge of the property market, and from its non-executive directors covering accounting, corporate and public company governance, City practice and the property development industry sector.

The Board considers that, as a whole, it has the necessary mix of experience, skills, personal qualities and capabilities to deliver the strategy of the Company for the benefit of shareholders over the medium to long-term.  The Board is not currently “gender balanced”, but this is not considered material to the strategy of the Company.  Any appointment to the Board would be made with a view to an applicant’s skills and experience regardless of gender.

Upon appointment to the Board, new directors receive a memorandum on their responsibilities as directors and as directors of a company whose securities are admitted to a trading facility.  They also receive a presentation on the AIM Rules from the Company’s nominated adviser.

During the year ended 31 March 2018, external advice has been sought by the Board from its nominated adviser and lawyers in relation to the acquisition of TR+.  The Board has also sought advice from its nominated adviser on a regular basis in relation to the Company’s compliance with the AIM Rules.  During that period, external advice has not been sought by board committees, although the audit committee holds regular discussions and meetings with the auditors as appropriate.

Advice and support is available to the Board on matters of corporate governance from the company secretary.

7. Evaluate board performance based on clear and relevant objectives, seeking continuous improvement

High-level explanation of the board performance effectiveness process:


Succession planning:


8. Promote a corporate culture that is based on ethical values and behaviours

How the board ensures that the Company has the means to determine that ethical values and behaviours are recognised and respected:


9. Maintain governance structures and processes that are fit for purpose and support good decision-making by the board

High level explanation of the application of the QCA Code:

Roles and responsibilities of the chair, chief executive and any other directors who have specific individual responsibilities:

Roles of committees, including terms of reference:


Matters reserved for the board:


Evolution of the corporate governance framework:


10. Communicate how the company is governed and is performing by maintaining a dialogue with shareholders and other relevant stakeholders

The outcome of all shareholder votes should be disclosed in a clear and transparent manner:

Where a significant proportion of votes are cast against a resolution in general meeting, the Company should include an explanation of what actions it intends to take to understand the reasons behind that vote result, and any action it will take as a result of that vote:

The work of board committees during the year:

Include historical annual reports and other governance-related material, including notices of general meetings over the last five years: