Notes to the consolidated financial statements continued For the year ended 30 June 2025
34. Financial risk management The Group has identified the financial risks arising from its activities and has established policies and procedures as part of a formal structure for managing risk, including establishing risk lines, reporting lines, mandates and other control procedures. The structure is reviewed regularly. The Group does not use derivative financial instruments for risk management purposes. 34(a) Liquidity risk Liquidity risk is the risk that the Group is unable to meet its payment obligations associated with its financial liabilities when they fall due. The primary objective of the Group’s treasury policy is to manage short-term liquidity requirements and to ensure that the Group maintains a surplus of immediately realisable assets over its liabilities, such that all known and potential cash obligations can be met. The table below shows the Group’s undiscounted cash inflows and outflows from non-derivative financial assets and liabilities, together with cash and bank balances available on demand.
After 3 months but not more than 1 year £’000
Not more than 3 months £’000
After 1 year but not more than 6 years £’000
On demand £’000
No fixed payment date £’000
Total £’000
At 30 June 2025 Cash flows from financial assets Financial assets at amortised cost
– – – – – – – – – –
205
419
19,301
–
19,925 1,095 14,188 33,915
– – –
– – – – –
–
1,095
Financial assets at fair value through profit or loss Deferred contingent consideration receivable
14,188
– – – – – – – – –
33,915
– – –
Cash and balances at bank
832
832
Trade receivables Other receivables
1,571 2,608
1,571
33,915
419
33,489
1,095
71,526
Cash flows from financial liabilities Trade payables
(7,959)
–
–
(7,959) (16,105) (19,277) (8,431) (51,772) 19,754
Deferred contingent consideration payable
–
(14,176)
(1,929)
(19,277) (6,070) (33,306) (30,698)
–
–
Accruals and deferred income
(544)
(1,817) (3,746)
Other financial liabilities
(14,720) (14,301)
Net liquidity surplus/(gap)
33,915
29,743
1,095
At 30 June 2024 Cash flows from financial assets Financial assets at amortised cost*
– – –
379
593
28,991
– –
29,963
Financial assets at fair value through other comprehensive income
– – –
– – – – –
500
500 905
Financial assets at fair value through profit or loss
– – – –
905
Cash and balances at bank
44,731
– – –
44,731 2,899
Trade receivables Other receivables
– –
2,899
496
496
44,731
3,774
593
29,491
905
79,494
Cash flows from financial liabilities Trade payables
– – –
(3,728) (25,618) (29,346) (25,572)
–
–
– – –
(3,728)
Other financial liabilities
(2,206) (2,206) (1,613)
(2,032) (2,032)
(29,856) (33,584)
Net liquidity surplus/(gap)
44,731
27,459
905
45,910
* Prior year figures have been restated to separately disclose £972,000 of interest receivable relating to Gilts.
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Brooks Macdonald Group plc Annual Report and Accounts 2025
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