Notes to the consolidated financial statements continued For the year ended 30 June 2025
20. Financial assets and liabilities continued
During the financial year, the Group resigned as investment manager to the SVS Brooks Macdonald Defensive Capital Fund (“DCF”) (subsequently renamed SVS RM Defensive Capital Fund). The resignation was subject to an SPA and under the terms of the SPA, the Group are entitled to deferred contingent consideration receivable based on funds under management meeting certain targets over a three-year period post disposal. On disposal, the estimated fair value of deferred contingent consideration receivable was £658,000. As at 30 June 2025, the fair value of deferred contingent consideration receivable for the DCF disposal was £289,000. Additionally, the Group sold BMI and its wholly-owned subsidiaries, which made up the Group’s previously reported International segment. Part of the consideration is deferred based on the disposal group revenue levels measured over a one-year period commencing 12 months post disposal, and payable two years post completion. On disposal, the estimated fair value of deferred contingent consideration receivable was £13,649,000. As at 30 June 2025, the fair value of deferred contingent consideration receivable for the sale of BMI was £13,899,000. 22. Trade and other receivables
Level 1 £’000
Level 2 £’000
Level 3 £’000
Total £’000
Financial liabilities At 1 July 2024
– – – –
– – – –
–
–
15,338
15,338
Additions
Finance cost of deferred contingent consideration payable
426 341
426 341
Net changes in fair value
At 30 June 2025 16,105 Level 3 financial liabilities relate to deferred contingent consideration payable, valued using the net present value of the expected future amounts payable. The key inputs are management- – – 16,105 approved forecasts and expectations against the criteria of the deferred contingent consideration to set expectations of future amounts payable. The deferred contingent consideration is reviewed and revalued at regular intervals over the deferred contingent consideration period (refer to note 26). The fair value is sensitive to the change in management- approved forecasts, which relate to revenue and AUM projections for future periods, however, at each reporting date, the relevant management approved forecasts are deemed to be the most accurate and relevant input to the fair value measurement. 21. Deferred contingent consideration receivable Deferred contingent consideration receivable reflects the Directors’ best estimate of amounts receivable in the future in respect of the sale of certain subsidiary undertakings and businesses. Deferred contingent consideration receivable is measured at its fair value based on discounted expected future cash flows. The movements in the total deferred contingent consideration receivable balance during the financial year were as follows:
2025 £’000
2024 £’000 2,899
832
Trade receivables Other receivables
1,571
496
23,478 25,881
Prepayments and accrued income Total trade and other receivables
25,666 29,061
Expected credit losses are immaterial in relation to trade receivables; refer to note 34 for details on the credit risk assessment. Accrued income includes portfolio management fee income for the final quarter, outstanding at the consolidated statement of financial position date. 23. Cash and cash equivalents Cash and cash equivalents are distributed across a range of financial institutions with high credit ratings in accordance with the Group’s treasury policy. Cash at bank comprises current accounts which can be accessed immediately. Cash and cash equivalents also includes amounts held in money market funds and deposit accounts with a maturity of three months or less. The purpose of these holdings is to meet short-term cash requirements rather than for underlying investment purposes and are subject to insignificant risk of changes in value.
2025 £’000
2024 £’000
–
At 1 July Additions
– – – – –
14,307
273
Finance income on deferred contingent consideration receivable
(392)
Fair value adjustments
At 30 June
14,188
Analysed as: Amounts falling due within one year
289
– – –
13,899 14,188
Amounts falling due after more than one year
Total deferred contingent consideration receivable
140
Brooks Macdonald Group plc Annual Report and Accounts 2025
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