22. Financial instruments and financial risk management

Group

Company

Counterparties without external credit rating:

2025

£’000

2024

£’000

2025

£’000

2024

£’000

Existing customers with no defaults in the past

32,384

28,823

17,729

19,133

Existing customers with some defaults in the past, net of impairment allowance

–

10

–

–

32,384

28,833

17,729

19,133

Group

Company

Cash at bank

2025

£’000

2024

£’000

2025

£’000

2024

£’000

Moody’s P-1

13,277

10,161

6,399

5,449

Moody’s P-2

588

–

–

–

Moody's P-3

117

373

–

–

13,982

10,534

6,399

5,449

Group

Company

Derivative financial assets

2025

£’000

2024

£’000

2025

£’000

2024

£’000

Moody’s P-1

980

42

980

42

980

42

980

42

Group

Company

2025

£’000

2024

£’000

2025

£’000

2024

£’000

Gross carrying amount

32,673

29,003

17,729

19,133

– due for less than 60 days

32,380

28,423

17,729

19,127

– due for more than 60 days

293

580

–

6

Expected loss rate





– due for less than 60 days

–

–

–

–

– due for more than 60 days

98.6%

29.6%

–

–

Loss allowance

289

170

–

–

Trade receivables net of allowances

32,384

28,833

17,729

19,133


Group

£’000

Company

 £’000

At 1 January 2024

247

11

Increase in loss allowance recognised in profit or loss during the year

33

–

Reversal of loss allowance on collection of dues

(110)

(11)

At 31 December 2024

170

–

At 1 January 2025

170

–

Acquisition of subsidiary

23

–

Increase in loss allowance recognised in profit or loss during the year

96

–

At 31 December 2025

289

–

2025

2024

Group

Effective

interest rate
%

Fixed
rates
£’000

Variable
rates
£’000

Effective

interest rate
%

Fixed
rates
£’000

Variable
rates
£’000

US dollar short-term borrowings

5.60%

–

14,127

6.57%

–

21,559

Sterling short-term borrowings

–

–

–

–

–

–

Euro short-term borrowings

3.52%

–

31,419

5.06%

–

13,229

US dollar long-term borrowings

–

–

–

–

–

Total*

45,546


–

34,788

2025

2024

Company

Effective

interest rate

%

Fixed

rates
£’000

Variable

rates
£’000

Effective

interest rate

%

Fixed

rates
£’000

Variable

rates
£’000

US dollar short-term borrowings

5.60%

–

14,127

6.57%

–

21,559

Sterling short-term borrowings

–

–

–

–

–

–

Euro short-term borrowings

3.52%

–

31,419

5.06%

–

13,229

US dollar long-term borrowings

–

–

–

–

–

Total*

45,546


–

34,788

2025

2024

Group

Carrying

amount 

£’000

Contractual

cash flows

£’000

1 year

or less
£’000

1 to 2

years
£’000

More

than
2 years
£’000

Carrying

amount 

£’000

Contractual

cash flows 

£’000

1 year

or less
£’000

1 to 2

years
£’000

More

than
2 years
£’000

Non-derivative financial liabilities











Interest-bearing loans and borrowings

(45,511)

(45,546)

(45,839)

–

–

(34,602)

(34,788)

(34,788)

–

–

Trade and other payables

(16,348)

(16,348)

(16,348)

–

–

(8,142)

(8,142)

(8,142)

–

–

Lease liabilities

(11,503)

(13,154)

(3,238)

(3,176)

(6,740)

(8,955)

(10,180)

(2,625)

(2,401)

(5,154)

Total non-derivative financial liabilities

(73,362)

(75,048)

(65,425)

(3,176)

(6,740)

(51,699)

(53,110)

(45,555)

(2,401)

(5,154)

Derivative financial liabilities

(67)

(67)

(67)

–

–

(1,164)

(1,164)

(1,164)

–

–

2025

2024

Company

Carrying

amount

£’000

Contractual

cash flows

£’000

1 year

or less
£’000

1 to 2

years
£’000

More

than
2 years
£’000

Carrying

amount

£’000

Contractual

cash flows

£’000

1 year

or less
£’000

1 to 2

years
£’000

More

than
2 years
£’000

Non-derivative financial liabilities











Interest-bearing loans and borrowings

(45,511)

(45,546)

(45,839)

–

–

(34,602)

(34,788)

(34,788)

–

–

Trade and other payables

(9,874)

(9,874)

(9,874)

–

–

(5,655)

(5,655)

(5,655)

–

–

Lease liabilities

(6,650)

(7,369)

(2,267)

(2,253)

(2,849)

(7,762)

(8,847)

(2,081)

(2,081)

(4,685)

Total non-derivative financial liabilities

(62,035)

(62,789)

(57,980)

(2,253)

(2,849)

(48,019)

(49,290)

(42,524)

(2,081)

(4,685)

Derivative financial liabilities

(67)

(67)

(67)

–

–

(1,164)

(1,164)

(1,164)

–

–

2025

2024

Average

Closing

Average

Closing

Euro/sterling

1.173

1.146

1.177

1.210

US dollar/sterling

1.312

1.345

1.278

1.252

Group – 2025

Euro

£’000

US dollar

£’000

Other

£’000

Total

£’000

Cash and cash equivalents

3,578

3,808

1,548

8,934

Trade receivables

7,848

21,016

346

29,210

Trade payables

(4,166)

(3,875)

(252)

(8,293)

Group – 2024

Euro

£’000

US dollar

£’000

Other

£’000

Total

£’000

Cash and cash equivalents

1,593

4,066

1,264

6,923

Trade receivables

4,952

17,887

1,192

24,031

Trade payables

(2,048)

(995)

(267)

(3,310)

Company – 2025

Euro

£’000

US dollar

£’000

Other

£’000

Total

£’000

Cash and cash equivalents

1,079

235

109

1,423

Trade receivables

2,755

10,712

113

13,580

Trade payables

(1,956)

(1,999)

–

(3,955)

Company – 2024

Euro

£’000

US dollar

£’000

Other

£’000

Total

£’000

Cash and cash equivalents

363

1,489

49

1,901

Trade receivables

3,160

10,600

201

13,961

Trade payables

(1,989)

(96)

–

(2,085)

31 December 2025

Level 1

£’000

Level 2

£’000

Level 3

£’000

Total

£’000

Assets





Forward exchange contracts

–

980

–

980

Total assets

–

980

–

980

Liabilities

Forward exchange contracts

–

(67)

–

(67)

Total liabilities

–

(67)

–

(67)

31 December 2024

Level 1

£’000

Level 2

£’000

Level 3

£’000

Total

£’000

Assets





Forward exchange contracts

–

42

–

42

Total assets

–

42

–

42

Liabilities





Forward exchange contracts

–

(1,164)

–

(1,164)

Total liabilities

–

(1,164)

–

(1,164)

2025

2024

Group and Company

Foreign
currency
$’000

Contract
value
£’000

Transaction

fair value
£’000

Contract
fair value
£’000

Foreign
currency
$’000

Contract
value
£’000

Transaction

fair value
£’000

Contract
fair value
£’000

Sell USD

$71,566k

54,181

55,094

913

$67,100

52,467

51,345

(1,122)

2025

2024

Group

Financial

assets at

amortised

cost
£’000

Derivatives

used for

hedging

£’000

Financial

liabilities at

amortised

cost
£’000

Financial

assets at

amortised

cost
£’000

Derivatives

used for

hedging

£’000

Financial

liabilities at

amortised

cost
£’000

Trade and other receivables

34,631

–

–

30,151

–

–

Cash and cash equivalents

13,982

–

–

10,534

–

–

Derivative financial instruments – assets

–

980

–

–

42

–

– liabilities

–

(67)

–

–

(1,164)

–

Interest-bearing loans and borrowings

–

–

(45,511)

–

–

(34,602)

Trade and other payables

–

–

(16,348)

–

–

(8,142)

Lease liability

–

–

(11,503)

–

–

(8,955)

2025

2024

Company

Financial

assets at
amortised
cost
£’000

Derivatives

used for

hedging
£’000

Financial

liabilities at

amortised
cost
£’000

Financial

assets at

amortised
cost
£’000

Derivatives

used for

hedging
£’000

Financial

liabilities at

amortised
cost
£’000

Trade and other receivables

19,617

–

–

19,784

–

–

Cash and cash equivalents

6,399

–

–

5,449

–

–

Derivative financial instruments – assets

–

980

–

–

42

–

– liabilities

–

(67)

–

–

(1,164)

–

Interest-bearing loans and borrowings

–

–

(45,511)

–

–

(34,602)

Trade and other payables

–

–

(9,874)

–

–

(5,655)

Lease liability

–

–

(6,650)

–

–

(7,762)


As at

31 December

2025
£’000

As at

31 December

2024
£’000

Net borrowings

31,529

24,068

EBITDA*

37,794

28,190


Net borrowings/EBITDA

0.83

0.85

Net finance charges

1,638

2,600

EBITDA/net finance charges

23.07

10.84


Note

2025

£’000

2024

£’000

Profit/(loss) for the year


25,820

(2,755)

Depreciation and amortisation

11,12,13

9,632

8,983

Finance costs

7

1,665

2,873

Share of profit from joint venture

10

(46)

(74)

Equity-settled share-based payments

25

1,674

1,077

Taxation

(1,897)

2,908

EBITDA before exceptional items


36,848

13,012

Add back exceptional items


946

15,178

EBITDA


37,794

28,190