25 Financial instruments continued Currency risk continued At 31 May 2022, the Group held the following instruments to hedge exposures to changes in foreign currency rates, all of which were due to mature within one month of the Balance Sheet date.
2022 £m
2021 £m
Forward exchange contracts
–
Net exposure (£m)
70.7
– 1.402205
Average GBP:USD forward contract rate
Interest rate risk The Group and Company finance their operations through a combination of retained profits and bank borrowings. The Group borrows and invests surplus cash at floating rates of interest based upon bank base rate. The cash and cash equivalents of the Group and Company at the end of the financial year were as follows:
2022 £m
2021 £m 85.0 16.1
Group
26.4
Sterling denominated financial assets Euro denominated financial assets US Dollar denominated financial assets Other denominated financial assets
2.4
42.4
7.3 8.1
2.0
Total
73.2
116.5
The financial assets and liabilities of the Company at the end of the financial year were as follows:
2022 £m
2021 £m
Company
Financial assets Sterling denominated financial assets Amounts owed by Group undertakings
20.2 32.9
0.6
162.6
Total
53.1
163.2
Financial liabilities Amounts owed to Group undertakings
18.2
13.5
Total
18.2
13.5
A change of 100 basis points in interest rates would result in a difference in annual pre-tax profit of £1.3m (2021: £0.3m). The financial liabilities of the Group and their maturity profile are as follows:
2022
2021
Sterling £m
EUR £m
USD £m
Other £m
Total £m
Sterling £m
EUR £m
USD £m
Other £m
Total £m
(30.7) (35.8)
(9.9) (1.1)
(28.9) (85.2)
(2.7)
(72.2)
Less than one year Two to five years More than five years
(29.5) (39.8) (10.0)
(8.4) (1.2)
(8.3) (8.4) (1.6)
(4.1) (1.5)
(50.3) (50.9)
(1.5) (123.6) – (10.7)
(9.9)
– (0.8)
–
– (11.6)
Total
(76.4)
(11.0) (114.9)
(4.2) (206.5)
(79.3)
(9.6)
(18.3)
(5.6) (112.8)
Climate change The Directors have considered the impact of climate change on fair value measurement and financial instruments, with no material impact identified.
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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