Strategic Report
Governance Report
Financial Statements
Company Financial Statements
54. Related-party transactions continued
55(b) Market risk The Company is exposed to minimal market risk. It operates primarily in GBP and holds no foreign currency assets or investments in equity instruments. In addition to this, interest rate risk on the Company’s cash resources is limited given that the Company holds cash resources in short-term deposits with maturities of three months or less and interest rates on Gilts are fixed. 55(c) Credit risk The Company’s primary exposure to credit risk relates to cash reserves that are placed with regulated financial institutions and amounts due from subsidiaries. In line with the Group, the Company only deposits funds with approved, high-quality banks. In accordance with the Group’s corporate treasury policy, there is a requirement for all banking counterparties to have a minimum credit rating of BBB+. The Company also holds a proportion of the Group’s surplus cash resources in UK Gilts. The credit risk on these holdings is considered minimal due to the inherent government backing. A minimum credit rating requirement for Gilts as part of the Group’s strategy has therefore been set at ‘AA’, which aligns to the current credit rating of UK Gilts. Assets exposed to credit risk recognised on the Company statement of financial position total £4,264,000 (2024: £12,785,000), being the Company’s total cash and cash equivalents. Exclusive to intragroup receivables, there are no other trade receivables held by the Company in the year. 56. Events since the end of the year The final dividend for the year ended 30 June 2025, which was approved by the Board of Directors after 30 June 2025, is described in note 16 of the consolidated financial statements. In August 2025, the Group accepted an offer from its insurers for £1.3 million in settlement of legacy matters related to its International business. As the offer was made and accepted after the financial reporting date, and the receipt of funds was not considered virtually certain as at 30 June 2025, no asset has been recognised in these financial statements. However, at the date of signing these financial statements, the receipt of the proceeds was deemed probable. Accordingly, the insurance proceeds are expected to be recognised as other non-operating income in the statement of comprehensive income in the financial year ending 30 June 2026.
All transactions with fellow Group companies are carried out at arm’s length and all outstanding balances are to be settled in cash. None of the balances are secured and no provisions have been made for doubtful debts in respect of any of the amounts due from fellow Group companies.
Amounts owed by related parties
Amounts owed to related parties
2025 £’000
2024 £’000
2025 £’000
2024 £’000
Brooks Macdonald Asset Management Limited
19,902
–
–
14,654
Brooks Macdonald Asset Management (International) Limited Brooks Macdonald Funds Limited
– –
162
–
–
900
–
900
Brooks Macdonald Financial Planning Limited
355 400 1,113
– – –
– – –
355
CST Wealth Limited
– –
Lucas Fettes Holdings Limited
All of the above amounts are interest-free and repayable on demand.
55. Financial risk management The risk management processes of the Company are aligned to those of the Group as a whole. The Company’s specific risk exposures are explained below. 55(a) Liquidity risk Liquidity risk is the risk that the Company does not have sufficient financial resources to meet its obligations when they fall due or will have to do so at cost. The Company has limited payment obligations. Material payments including external dividend payments or payments to facilitate the Group’s strategic projects are funded predominately by the main trading entities of the Group, with funds being transferred via upstream intragroup dividend payments. The Company can also request to borrow funds through intra-Group loans to maintain sufficient liquidity.
Brooks Macdonald Group plc Annual Report and Accounts 2025
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