23 Financial instruments continued Currency risk continued The £1.9m of borrowings denominated in sterling relates to unamortised arrangement fees. A 10% change in each of the respective exchange rates utilised during the year would impact revenue by £17.0m (2024: £23.6m) and borrowings by £0.5m (2024: £4.3m), either increasing or decreasing each by the stated amounts. The Group’s risk management policy is to hedge foreign currency exposure in respect of significant material transactions that may arise from time to time. No material hedges were in place at 30 September 2025 or at 30 September 2024. In order to manage shorter-term currency risk, the Group enters into short-term derivative arrangements. The Group designates the spot element of forward foreign exchange contracts to hedge its currency risk and applies a hedge ratio of 1:1. The forward elements of forward exchange contracts are excluded from the designation of the hedging instrument and are separately accounted for as a cost of hedging, which is recognised in equity in a cost of hedging reserve. The Group’s policy is for the critical terms of the forward exchange contracts to align with the hedged item. The Group determines the existence of an economic relationship between the hedging instrument and hedged item based on the currency, amount and timing of their respective cash flows. Given the short-term nature of these hedges there is limited risk of ineffectiveness. Interest rate risk The Group and Company finance their operations through a combination of retained profits and bank borrowings. The Group borrows and invests surplus cash at floating rates of interest based upon bank base rate. The cash and cash equivalents of the Group and Company at the end of the financial year were as follows:
2025 £m
2024 £m
Group
2.7 3.5 4.3 2.0
Sterling denominated financial assets Euro denominated financial assets US Dollar denominated financial assets Other denominated financial assets
18.0
4.1 4.5 3.2
Total
12.5
29.8
The financial assets and liabilities of the Company at the end of the financial year were as follows:
2025 £m
2024 £m
Company
Financial assets Sterling denominated financial assets Amounts owed by Group undertakings
—
9.8
34.2
43.1
Total
34.2
52.9
Financial liabilities Sterling denominated financial liabilities Amounts owed to Group undertakings
— —
9.8 0.1
Total
—
9.9
A change of 100 basis points in interest rates would result in a difference in annual pre-tax profit of £nil (2024: £0.6m). The financial liabilities of the Group (trade and other payables, borrowings and lease liabilities) and their maturity profile are as follows:
2025
2024
Sterling £m
EUR £m
USD £m
Other £m
Total £m
Sterling £m
EUR £m
USD £m
Other £m
Total £m
(30.4)
(6.3) (1.8) (1.3)
(7.3) (7.1)
(3.2) (2.2) (0.1)
(47.2) (14.3)
Less than one year Two to five years More than five years
(34.9) (28.6)
(5.0) (2.1)
(9.1)
(3.4) (2.8)
(52.4) (79.5)
(3.2) (3.0)
(46.0)
—
(4.4)
(4.0)
—
—
—
(4.0)
Total
(36.6)
(9.4)
(14.4)
(5.5)
(65.9)
(67.5)
(7.1)
(55.1)
(6.2)
(135.9)
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 147
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