Notes to the consolidated financial statements continued For the year ended 30 June 2025
17. Intangible assets
17(a) Goodwill Goodwill acquired through business combinations is allocated to the respective CGUs that benefit from the acquisition. Impairment reviews are conducted annually to assess the recoverability of goodwill. As of 30 June 2025, the impairment assessments determined that no goodwill impairment is required for the CGUs within the Group.
Computer software and system development
Client relationship contracts £’000
Goodwill £’000
costs £’000
Total £’000
Carrying amount of goodwill by CGU
Cost At 30 June 2023
2025 £’000 26,124 15,863 8,541 3,945 3,859 3,320
2024 £’000
64,373
8,830 1,734
76,098
149,301
CGU
Additions
–
–
1,734
LIFT
–
At 30 June 2024
64,373 31,667
10,564
76,098 22,977
151,035 62,135
Cornelian
16,111 8,541 3,945
7,491
Additions Disposals
Adroit
(249)
– –
–
(249)
Integrity
(21,243) 74,548
(29,930)
(51,173)
Disposal of subsidiary
Lucas Fettes
–
At 30 June 2025
18,055
69,145
161,748
Funds
3,320
1,683
CST
–
Accumulated amortisation and impairment At 30 June 2023
–
International
9,602 41,519
Total goodwill
63,335
11,213
359
37,147 5,848
48,719 7,451 11,641 67,811 8,343
Amortisation charge
–
1,603
During the year ended 30 June 2025, goodwill was acquired through the acquisitions of CST, Lucas Fettes and LIFT (note 14). Conversely, goodwill related to the disposals of the DCF (which was part of the Braemar acquisition) and International CGUs were derecognised (note 13). Impairment assessment method and key assumptions The recoverable amount of each CGU is estimated using value-in-use calculations based on five-year cash flow projections, derived from the most recent budgets and forecasts approved by subsidiary boards. These cash flows are extrapolated using a long-term growth rate of 2%, reflective of historical performance, management strategies and prevailing economic conditions. The key judgements and estimates use in the impairment calculations are the pre-tax discount rates and annual revenue growth. These are set out in the table below and reflect market conditions and specific business risks of the CGU.
Impairment
11,641
–
–
At 30 June 2024
22,854
1,962 2,480
42,995
–
5,863
Amortisation charge Disposal of subsidiary
(11,641)
–
(22,230)
(33,871) 42,283
At 30 June 2025
11,213
4,442
26,628
Net book value At 30 June 2023 At 30 June 2024 At 30 June 2025
53,160 41,519 63,335
8,471 8,602 13,613
38,951 33,103 42,517
100,582 83,224 119,465
The amortisation charge of intangible assets is recognised within administrative costs in the consolidated statement of comprehensive income.
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Brooks Macdonald Group plc Annual Report and Accounts 2025
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