Financial Statements/Continued
Notes to the consolidated financial statements/Continued
24. Financial instruments The Group’s financial instruments comprise cash and cash equivalents, accounts receivable, secured loans, obligations under head leases and accounts payable that arise from its operations. The Group does not have exposure to any derivative financial instruments. Apart from the secured loans, as disclosed in Note 18, the fair value of the financial assets and liabilities is not materially different from their carrying value in the financial statements. Categories of financial instruments
Financial assets and liabilities at amortised cost £000
Held at fair value through profit or loss £000
Total £000
31 March 2023
Notes
Financial assets Debtors
– – –
4,023 4,023 20,050 20,050 24,073 24,073
15 16
Cash and cash equivalents
Financial liabilities Loans and borrowings
– – – –
222,764 222,764 2,697 2,697 9,035 9,035 234,496 234,496
18 22 17
Obligations under head leases
Creditors and accruals
Financial assets and liabilities at amortised cost £000
Held at fair value through profit or loss £000
Total £000
31 March 2022
Notes
Financial assets Debtors
15 16
– – –
5,483 5,483 38,547 38,547 44,030 44,030
Cash and cash equivalents
Financial liabilities Loans and borrowings
18 22 17
– – – –
216,832 216,832 2,707 2,707 9,101 9,101 228,640 228,640
Obligations under head leases
Creditors and accruals
25. Risk management 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 risk management 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 share capital, reserves, retained earnings and revaluation reserve. 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.
Picton Property Income Limited
150
Powered by FlippingBook