Financial Statements
Strategic Report
Governance Report
Other Information
31. 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.
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 undiscounted cash inflows and outflows from the Group under non-derivative financial assets and liabilities, together with cash and bank balances available on demand.
Not more than 3 months £’000
After 3 months but not more than 1 year £’000
After 1 year but not more than 6 years £’000
No fixed payment date £’000
On demand £’000
Total £’000
At 30 June 2024 Cash flows from financial assets Financial assets at amortised cost
– – – – –
– – – –
– – – – – – –
29,963
– – – – –
29,963
500
500 905
Financial assets at fair value through other comprehensive income
– – – –
905
Financial assets at fair value through profit or loss
44,731
44,731 2,899
Cash and balances at bank
2,899
Trade receivables Other receivables
496
496
44,731
3,395
30,463
905
79,494
Cash flows from financial liabilities Trade payables
– – –
(3,728) (25,618) (29,346) (25,951)
–
–
– – –
(3,728) (29,856) (33,584)
(2,206) (2,206) (2,206)
(2,032) (2,032) 28,431
Other financial liabilities
Net liquidity gap
44,731
905
45,910
At 30 June 2023 Cash flows from financial assets Financial assets at fair value through other comprehensive income
– –
– – –
– – – – – –
– – – – – –
500 825
500 825
Financial assets at fair value through profit or loss
Cash and balances at bank
53,355
– – –
53,355
Trade receivables Other receivables
– –
2,820
2,820
30,722 33,542
30,722 88,222
53,355
1,325
Cash flows from financial liabilities Trade payables
– – –
(4,003) (20,825) (24,828)
–
–
– – –
(4,003) (27,231) (31,234) 56,988
(2,120) (2,120) (2,120)
(4,286) (4,286) (4,286)
Other financial liabilities
Net liquidity gap
53,355
8,714
1,325
Brooks Macdonald Group plc Annual Report and Accounts 2024
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