Financial assets and liabilities at amortised cost £000
Held at fair value through profit or loss £000
Total £000
31 March 2020
Note
Financial assets Debtors
15 16
– – –
5,983 5,983 23,567 23,567 29,550 29,550
Cash and cash equivalents
Financial liabilities Loans and borrowings
18 22 17
– 165,136 165,136 1,817 1,817 9,936 9,936 – 176,889 176,889 – –
Obligations under head leases Creditors and accruals
25. Riskmanagement The Group invests in commercial properties in the United Kingdom. The following describes the risks involved and the risk management framework applied by the Group. Senior management reports regularly both verbally and formally to the Board, and its relevant committees, to allow them to monitor and review all the risks noted below. Capital riskmanagement The Group aims to manage its capital to ensure that the entities in the Group will be able to continue as a going concern while maximising the return to stakeholders through optimising its capital structure. The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The capital structure of the Group consists of debt, as disclosed in Note 18, cash and cash equivalents and equity attributable to equity holders of the Company, comprising issued capital, reserves and retained earnings. The Group is not subject to any external capital requirements. The Group monitors capital on the basis of its gearing ratio. This ratio is calculated as the principal borrowings outstanding, as detailed under Note 18, divided by the gross assets. There is a limit of 65% as set out in the Articles of Association of the Company. Gross assets are calculated as non-current and current assets, as shown in the Consolidated Balance Sheet. At the reporting date the gearing ratios were as follows: 2021 £000 2020 £000
166,208 167,465 712,471 695,674
Total borrowings Gross assets
Gearing ratio (must not exceed 65%) 24.1% The Board of Directors monitors the return on capital as well as the level of dividends to ordinary shareholders. The Group has managed its capital risk by entering into long-term loan arrangements which will enable the Group to manage its borrowings in an orderly manner over the long-term. The Group also has a revolving credit facility which provides greater flexibility in managing the level of borrowings. The Group’s net debt to equity ratio at the reporting date was as follows: 2021 £000 23.3% 2020 £000
184,274 186,391 (23,358) (23,567) 160,916 162,824 528,197 509,283
Total liabilities
Less: cash and cash equivalents
Net debt
Total equity
Net debt to equity ratio at end of year
0.30
0.32
123
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