Strategic Report
Governance Report
Financial Statements
Company Financial Statements
24. Lease liabilities Finance costs and financing cash flows associated with leases are reconciled below to show the movement in the financial year.
The Group offers a car leasing arrangement to provide a salary sacrifice car leasing scheme for employees. Each vehicle leased to individual employees creates a separate right-of-use asset (note 19) and lease liability measured at present value of the remaining lease payments, discounted using the lessee’s estimated incremental borrowing rate. The Group is party to leases as lessee in relation to property agreements for the use of office space. All leases are accounted for by recognising a right-of-use asset and a lease liability at the lease commencement date. Lease liabilities are initially measured at the present value of the contractual payments due to the lessor over the lease term discounted using the Group’s incremental borrowing rate. During the financial year, the Group recognised a new lease liability of £12,973,000 in relation to its new London head office. Further details of the lease are disclosed in note 19. 25. Provisions
Cars £’000
Property £’000
Total £’000
At 1 July 2023
611 174
4,530
5,141 1,331 (317)
Additions
1,157 (175)
Adjustment on change of lease terms
(142) (225)
Payments made
(2,311)
(2,536)
Finance cost of lease liabilities
21
174
195
At 30 June 2024
439
3,375
3,814
52
14,204
14,256
Additions
(57)
3
(54)
Adjustment on change of lease terms
Client compensation £’000
Leasehold dilapidations £’000
Other provisions £’000
(203)
(3,016)
(3,219)
Payments made
FSCS levy £’000
Total £’000
15
280
295
Finance cost of lease liabilities
–
(174)
(174)
Disposal of subsidiary
At 1 July 2023
250
167
625
280
1,322
At 30 June 2025
246
14,672
14,918
Charge to the consolidated statement of comprehensive income Utilised during the year
2025 £’000
2024 £’000
640
691
83
– –
1,414 (730)
(295)
(167)
(268)
Analysed as: Amounts falling due within one year
At 30 June 2024
595
691
440
280
2,006
700
2,169 1,645 3,814
Charge to the consolidated statement of comprehensive income Utilised during the year
14,218 14,918
Amounts falling due after more than one year
15
817
466
236
1,534
Total lease liabilities
(275)
(691)
– –
(280)
(1,246)
– –
– –
375
375
Additions Disposals
2025 £’000
2024 £’000
(6)
–
(6)
At 30 June 2025
335
817
900
611
2,663
Maturity analysis – undiscounted: Within one year
1,561
2,054 1,445
2025 £’000
2024 £’000
10,454
One to five years More than five years
7,568
–
Analysed as: Amounts falling due within one year
Total lease liabilities – undiscounted
19,583
3,499
1,890
1,628
773
Amounts falling due after more than one year
378
Total provisions
2,663
Reconciliation of lease liability to changes in cash flows The payments made included in the table above include lease payments of £254,000 (2024: £350,000) relating to leases attributable to discontinued operations up until the date of disposal.
2,006
Brooks Macdonald Group plc Annual Report and Accounts 2025
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