Strategic Report
Governance Report
Financial Statements
Company Financial Statements
Notes to the Company financial statements For the year ended 30 June 2025
40. General information Brooks Macdonald Group plc (“the Company”), a public limited company incorporated and registered in England and Wales and domiciled in the UK under the Companies Act 2006, is the Parent Company of a group of companies. Brooks Macdonald Group plc is listed on the LSE. The Company’s registration number is 04402058. The address of the registered office is 21 Lombard Street, London, EC3V 9AH, England. Statement of compliance The separate financial statements of the Company have been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006 as applicable to companies reporting under those standards. These Financial statements have been prepared on a historical cost basis, except for the revaluation of financial assets at fair value through other comprehensive income and deferred contingent consideration such that it is measured at fair value. 41. Basis of preparation The financial statements have been prepared on the historical cost basis, except for the revaluation of financial assets at fair value through other comprehensive income and deferred contingent consideration such that it is measured at fair value. At the time of approving the financial statements, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements. 42. New standards, amendments to standards and interpretations adopted by the Company in the year The Company’s accounting policies, which have been applied in preparing these financial statements, are consistent with those disclosed in the Annual Report and Accounts for the year ended 30 June 2024, other than where new policies have been adopted. Developments in reporting standards and interpretations are set out in note 3 to the consolidated financial statements. 43. Material accounting policies 43(a) Critical accounting judgements and key sources of estimation and uncertainty The preparation of financial information requires the use of assumptions, estimates and judgements about future conditions. Use of currently available information and application of judgement are inherent in the formation of estimates. Actual results in the future may differ from those reported. In this regard, the Directors consider that there were no critical accounting estimates or significant judgements during the year. The financial statements include other areas of judgement and accounting estimates. Whilst these areas do not meet the definition under IAS 1 of significant accounting estimates or critical
accounting judgements, the recognition and measurement of certain material assets and liabilities are based on assumptions and/or are subject to longer-term uncertainties. The underlying assumptions and estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial year in which the estimate is revised only if the revision affects both current and future periods. Further information about key assumptions and sources of estimation uncertainty is set out below. 43(b) Investments in subsidiary companies Investments held by the Company in subsidiary undertakings are held at cost less any provision for impairment. Impairment reviews are performed when a change in circumstances indicates that the investment may be impaired. Recoverable amounts of subsidiaries are determined by taking the higher of the fair value less costs to sell and the value-in-use. The value-in-use calculations require the use of estimates to derive the projected future cash flows attributable to each subsidiary. If the recoverable amount is lower than the carrying value of the investment, an impairment loss is recognised immediately in the statement of comprehensive income. 43(c) Subsidiary company guarantees and contingent liabilities As required by Section 479C of the Companies Act, the Company guarantees all outstanding liabilities to which its unaudited subsidiary companies (see note 46) are subject at the end of the financial year. Where the outflow is not probable or cannot be reliably measured, the potential obligation is disclosed as a contingent liability in the financial statements. 43(d) Retirement benefit costs Contributions in respect of the Group’s defined contribution pension scheme are recognised in the statement of comprehensive income as they fall due. 43(e) Employee Benefit Trust Where the Company holds its own equity shares through an EBT, these shares are shown as a reduction in shareholders’ equity. Any consideration paid or received for the purchase or sale of these shares is shown as a reduction in the reconciliation of movements in shareholders’ funds. No gain or loss is recognised in the statement of comprehensive income on the purchase, sale, issue or cancellation of these shares. 43(f) Changes in accounting policy During the financial year, the Group revised its accounting policy for the presentation of equity entries arising from share-based payment transactions. Previously, the credit entry for share- based payment charges was recognised in the share-based payment reserve. Under the revised policy, the Group now recognises this credit directly in retained earnings. The change was made to better reflect the nature of the expense as part of the Group’s accumulated profits and losses, and to align with common industry practice. The change in policy has been applied retrospectively in accordance with ‘IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors’. As a result, comparative figures have been restated, and an adjustment has been made to the opening balance of equity as at the beginning of the earliest comparative period.
Brooks Macdonald Group plc Annual Report and Accounts 2025
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