Audit Committee report
Focus for FY25
Goodwill (see Note 13)
The Committee reviewed the output of the value-in-use calculations presented by management supporting the value of goodwill held on the Group’s balance sheet in respect of previously acquired businesses. The Committee concluded that the estimated recoverable amount for the International business was less than the goodwill held on the Group’s balance sheet in respect of the International business, and accordingly approved an impairment charge of £11.6 million during the year. The Committee is satisfied that the remaining goodwill value is adequately supported by the respective value-in-use calculations. In determining the useful economic life of the Group’s client relationship intangible assets, the Committee reviewed relevant analysis presented by management. The Committee was in agreement and satisfied that the client relationship intangible assets are adequately supported by the respective impairment tests and reviews. The Committee reviewed the assessment performed by management regarding its annual suitability reviews, and concluded that no provision is required, in line with IAS 37 ‘Provisions, Contingent Liabilities and Contingent Assets’. As announced in March 2024, the Group carried out a strategic review of the International business, evaluating potential outcomes, including the possible disposal of the business. As a result, it is necessary to consider whether a sale of the International business was highly probable at the balance sheet date. The Committee reviewed management’s papers addressing the assessment of the key considerations and criteria set out in IFRS 5 Non-current Assets Held for Sale and Discontinued Operations as at 30 June 2024. The Committee agreed with management’s assessment that the potential sale of the International business was still at the early stages and therefore the IFRS 5 criteria for the International businesses to be classified as held for sale, had not been met as at 30 June 2024.
As well as considering the routine items of business, the Committee will also focus on the following matters during the next financial year: • Support the Group Board in overseeing a successful transition for the new CEO and appointment of a new CFO; • Oversee the maintenance of the adequacy and effectiveness of the financial internal controls; and • Reviewing the accounting in connection with the International strategy review as required. Approval This report, in its entirety, has been approved by the Audit Committee and the Board of Directors on its behalf by:
Amortisation of client relationships (see Note 13)
Provisions (see Note 23)
James Rawlingson Audit Committee Chair
Non-current assets held for sale (see Note 2(d))
11 September 2024
74 Brooks Macdonald Group plc Annual Report and Accounts 2024
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