Financial Statements
Strategic Report
Governance Report
Other Information
45. Deferred contingent consideration
46. Trade and other payables
2024 £’000
2023 £’000
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 year were as follows:
171
Trade payables
30
15,909 2,285 18,365
Amounts owed to subsidiary undertakings
900
Accruals and deferred income Total trade and other payables
1,556 2,486
2024 £’000 1,250
2023 £’000
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.
At beginning of year
–
– – –
Additions
1,026
Finance cost of deferred contingent consideration
51
47. Reconciliation of operating profit to net cash inflow from operating activities 2024 £’000
Fair value adjustments Initial cash consideration Shares consideration
173
(625) (625)
– –
2023 £’000 21,018
At end of year
–
1,250
12,308
Operating profit
Analysed as: Amounts falling due within one year
– – –
1,250
Adjustments for: – Increase in payables – Share-based payments
Amounts falling due after more than one year Total deferred contingent consideration
–
15,512
1,123
1,250
374
318
94
– Decrease/(increase) in receivables
(95)
–
– Changes in fair value of deferred contingent consideration
173
During the year ended 30 June 2023, the Company completed the Integrity Wealth Solutions Limited acquisition, and part of the consideration was to be deferred over a period of three years. The total cash deferred contingent consideration of £1,275,000 was recognised at its fair value of £1,026,000 on acquisition. The deferred contingent consideration was payable in October 2025 based on the future revenue generated by the discretionary business acquired. During the year, the Integrity Wealth Solutions Limited deferred contingent consideration was paid to the vendors of Integrity Wealth Solutions Limited, settled in cash of £625,000 and Brooks Macdonald Group plc shares valued at £625,000.
6,074
– Impairment of subsidiary
4,802 27,339
Net cash inflow from operating activities
34,362
Brooks Macdonald Group plc Annual Report and Accounts 2024
169
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