All you have to do is just wait for the ''approval letter'' .
-If it is approved then the next step is to arrange the citizenship ceremony, then apply for a British passport.
-If its not approved then probably you need to check all your requirements again and re-apply or appeal.
Hope this helps.

By the way, there is no appeal process for naturalisation applications.

Good day to you all in the forum. It's been a while. I did sent off my form AN since december and did reseive the confermation letter. Money has been taking from my account since 13/01/2012 but nothing forther has been head from the home office. Any advice will be much appriciated thanks.