Brooks Macdonald Annual Report and Accounts 2025

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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