Reigniting growth - Annual Report and Accounts 2024

Financial Statements

Strategic Report

Governance Report

Other Information

23. Provisions

Client compensation £’000

Leasehold dilapidations £’000

FSCS levy £’000

Tax-related £’000

Total £’000 1,145 1,078

At 1 July 2022

112

386 239

367 260

280

Charge to the Consolidated statement of comprehensive income

579

– –

Utilised during the year

(441) 250 640 (295)

(458)

(2)

(901)

At 30 June 2023

167 691

625

280

1,322 1,414

83

– –

Charge to the Consolidated statement of comprehensive income

(167)

(268)

(730)

Utilised during the year

At 30 June 2024

595

691

440

280

2,006

Analysed as: Amounts falling due within one year

595

691

62

280

1,628

378 440

378

Amounts falling due after more than one year

Total provisions

595

691

280

2,006

a. Client compensation Client compensation provisions relate to the potential liability arising from client complaints against the Group. Complaints are assessed on a case-by-case basis and provisions for compensation are made where judged necessary. The amount recognised within provisions for client compensation represents management’s best estimate of the potential liability. The timing of the corresponding outflows is uncertain as these are made as and when claims arise. b. FSCS levy Following confirmation by the FSCS in July 2024 of its final industry levy for the 2024/25 scheme year, the Group has made a provision of £691,000 (FY23: £167,000) for its estimated share.

c. Leasehold dilapidations Leasehold dilapidations relate to dilapidation provisions expected to arise on leasehold premises held by the Group, and monies due under the contract with the assignee of leases on the Group’s leased properties. d. Tax-related Tax-related provisions relate to voluntary disclosures made by the Group to HM Revenue and Customs (“HMRC”) following an input VAT review carried out by the Group during FY23.

Brooks Macdonald Group plc Annual Report and Accounts 2024

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