Strategic Report
Governance Report
Financial Statements
Company Financial Statements
49. Deferred contingent consideration receivable Deferred contingent consideration receivable reflects the Directors’ best estimate of amounts receivable in the future in respect of certain subsidiary undertakings that were disposed of by the Company. 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:
51. Deferred contingent consideration payable Deferred contingent consideration reflects the Directors’ best estimate of amounts payable in the future in respect of certain client relationships and subsidiary undertakings that were acquired by the Company. Deferred contingent consideration is measured at its fair value based on discounted expected future cash flows. The movements in the total deferred contingent consideration balance during the financial year were as follows:
2025 £’000
2024 £’000
2025 £’000
2024 £’000
–
–
At 1 July Additions
– – – –
At 1 July Additions
1,250
13,649
14,557
– – –
250
399 422
Finance income on deferred contingent consideration receivable
Finance cost of deferred contingent consideration
At 30 June
13,899
Fair value adjustments Initial cash consideration Shares consideration
– –
(625) (625)
Analysed as: Amounts falling due within one year
–
At 30 June
15,378
– –
–
13,899 13,899
Amounts falling due after more than one year
Total deferred contingent consideration receivable – During the year ended 30 June 2025, the Group disposed of Brooks Macdonald Asset Management (International) Limited, and its wholly-owned subsidiaries (“BMI”). Deferred contingent consideration of up to £22,850,000 is receivable two years post-completion contingent on BMI reaching certain revenue targets on an actual and run-rate basis. As at 30 June 2025, the deferred contingent consideration receivable for the BMI disposal was valued at £13,899,000. Refer to note 13 for further details. 50. Trade and other payables
Analysed as: Amounts falling due within one year
13,767
– –
1,611
Amounts falling due after more than one year Total deferred contingent consideration payable
15,378 – During the year ended 30 June 2025, the Group completed the acquisitions of CST, Lucas Fettes and LIFT (note 14) and part of the consideration amounts are to be deferred over one and two-year periods. The deferred contingent consideration is payable based on client attrition performance and business profitability over the deferral period. The estimated fair value of the deferred contingent consideration at acquisition was £14,557,000. During the period from acquisition to 30 June 2025, the Group recognised a finance cost of £422,000 on this deferred contingent consideration payable.
2025 £’000 2,718 22,670
2024 £’000
Trade payables
171
Amounts owed to subsidiary undertakings
15,909 2,285 18,365
1,203
Accruals and deferred income Total trade and other payables
26,591
Amounts owed to subsidiary companies are unsecured, interest-free and repayable on demand. This balance has increased in line with treasury and cash management within the Group.
Brooks Macdonald Group plc Annual Report and Accounts 2025
159
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