23 Financial instruments continued Financial instruments policy All instruments utilised by the Company and Group are for financing purposes. The financial management and treasury activities of the Group are controlled centrally for all operations with local finance teams responsible for day-to-day banking activities. Fair value of financial instruments As at 30 September 2025, the Group and Company had no other financial instruments other than those disclosed below. In addition, no embedded derivatives have been identified. There have been no transfers between levels in the year. The following table presents the Group’s financial assets and liabilities that are measured at fair value by level of fair value hierarchy: • Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1) • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2) • Inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3) Borrowings are held at amortised cost, which is considered to equate to fair value. All other assets and liabilities are held at either fair value or their carrying value, which approximates to fair value.
2025
2024
Level 1 £m
Level 2 £m
Level 3 £m
Level 1 £m
Level 2 £m
Level 3 £m
— — —
Financial liabilities at fair value through profit or loss
—
0.8
—
— 0.9
—
Financial assets at fair value through profit or loss
— — —
Total financial asset/liabilities
— 0.9
—
—
0.8
—
At 30 September 2025, the Group holds derivatives (financial assets) with a mark to market valuation of £0.9m (2024 financial liabilities: £0.8m) to mitigate currency risk, as described in Note 23. Credit risk Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Group’s receivables from customers. The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Exposure to credit risk The carrying value of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was:
Group 2025 £m
Company 2025 £m
Group 2024 £m
Company 2024 £m
14.1
— —
Trade receivables Other receivables
17.3
— —
1.0
1.1
—
34.2
Amounts owed by Group undertakings
—
43.1
19.4 12.5
— —
Contract assets
20.1 29.8
—
Cash and cash equivalents
9.8
Total
47.0
34.2
68.3
52.9
The maximum exposure to credit risk for trade receivables and other receivables at the reporting date by geographic region was:
Group 2025 £m
Company 2025 £m
Group 2024 £m
Company 2024 £m
Trade and other receivables by geographical segment
6.8 0.7 5.1 2.5
— — — —
UK
8.0 1.1 4.9 4.4
— — — —
APAC
North America
Europe
Total
15.1
—
18.4
—
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 145
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