Notes to the Company financial statements For the year ended 30 June 2024
The underlying assumptions and estimates are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised only if the revision affects both current and future periods. 38. Critical accounting judgements and key sources of estimation and uncertainty continued
41. Investment in subsidiaries
Group undertakings £’000
Net book value At 1 July 2022
102,011 17,889 (4,802) 2,686 (7,482) 110,302 (6,074)
Additions
Further information about key assumptions and sources of estimation uncertainty is set out below.
Impairment in subsidiary
Capital contributions to subsidiaries relating to share-based payments Capital contributions from subsidiaries relating to share-based payments
Investment in subsidiaries The Company’s investment in subsidiaries is reviewed annually for impairment, or when a change in circumstances indicates that it might be impaired. When required, the recoverable amounts of subsidiaries are determined by value-in-use calculations, which require the use of estimates to derive the projected future cash flows attributable to each subsidiary. If the projected cash flows cannot support the cost of investment, an impairment in the investment in subsidiary may be required. Details of the investment in subsidiaries are given in Note 41. 39. Profit for the year Brooks Macdonald Group plc reported profit after tax for the year ended 30 June 2024 of £13,105,000 (FY23: £21,014,000). Auditors’ remuneration is disclosed in Note 7 of the Consolidated financial statements. The average monthly number of employees during the year was eight (FY23: eight). Directors’ emoluments are set out in Note 5(d) of the Consolidated financial statements. 40. Dividends Details of the Company’s dividends paid and proposed, subject to approval at the Annual General Meeting, are set out in Note 12 of the Consolidated financial statements.
At 30 June 2023
Impairment in subsidiaries
2,398
Capital contributions to subsidiaries relating to share-based payments Capital contributions from subsidiaries relating to share-based payments
(4,215)
At 30 June 2024
102,411
During the year, the Company recognised an impairment in relation to a subsidiary company, Brooks Macdonald Asset Management (International) Limited of £5,768,000. Based on a value-in-use calculation, the recoverable amount of the International CGU for investment in subsidiary purposes at 30 June 2024 was £44,097,000. This fell short of the carrying amount of the Company’s investment in Brooks Macdonald Asset Management (International) Limited by £5,768,000, resulting in an impairment charge recognised for this amount. During the year, the Company recognised an impairment in relation to a subsidiary company, Braemar Group Limited of £306,000. The net assets of the Braemar Group CGU at 30 June 2024 was £3,813,000, which was below the carrying amount of the Company’s investment in Braemar Group Limited by £306,000, resulting in an impairment charge recognised for this amount. During the year, the Company provided capital contributions of £2,398,000 to underlying subsidiaries. During the year, the Company received capital contributions from underlying subsidiaries in relation to share options exercises of £4,215,000. During the year ended 30 June 2023, the Company acquired the entire share capital of Integrity Wealth (Holdings) Limited, Integrity Wealth Bidco Limited and their subsidiary company, Integrity Wealth Solutions Limited at a cost of £7,087,000 and Adroit Financial Planning Limited at a cost of £11,261,000 (as disclosed in Note 10 of the Consolidated financial statements).
166 Brooks Macdonald Group plc Annual Report and Accounts 2024
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