Page 87 - Beeks Financial Cloud Group Annual Report 2021

Beeks Financial Cloud Group PLC
Notes to the Consolidated Financial Statements For the year ended 30 June 2021

Credit risk is managed on a Group takes into account the nature of EBITDA and minimum adjusted cash
basis. Credit risks arise from cash The Group’s trading history with the banking covenants. Judgement is
and cash equivalents and deposits customer, along with managements required in assessing what items
with banks and financial institutions, view of expected future events and are allowable for the adjusted
as well as credit exposures to market conditions. components.
customers, including outstanding
receivables and committed The credit risk on liquid funds is The Board receives regular debt
transactions. Credit risk refers to the limited because the majority of management forecasts which
risk that a counterparty will default funds are held with two banks with estimate the cash inflows and
on its contractual obligations high credit-ratings assigned by outflows over the next twelve
resulting in financial losses to international credit-rating agencies. months, so that management can
The Group. The Group provides Management does not expect any ensure that sufficient financing is
standard credit terms (normally 30 losses from non-performance of in place as it is required. Surplus
days) to all of its customers which these counterparties. cash within The Group is put on
has resulted in trade receivables of deposit in accordance with limits
£981,000 (2020: £751,000) which are None of The Group’s financial assets and counterparties agreed by
stated net of applicable allowances are secured by collateral or other the Board, the objective being to
and which represent the total credit enhancements. maximise return on funds whilst
amount exposed to credit risk. ensuring that the short-term cash
Liquidity risk flow requirements of The Group
The Group’s credit risk is primarily The Group closely monitors its are met.
attributable to its trade receivables. access to bank and other credit
The Group present the amounts in facilities in comparison to its As at 30 June 2021, The Group’s
the balance sheet net of allowances outstanding commitments on a financial liabilities (excluding
for doubtful receivables, estimated regular basis to ensure that it has leases disclosed in Note 17) have
by The Group’s management based sufficient funds to meet obligations contractual maturities (including
on prior experience and the current of The Group as they fall due. The interest payments where applicable)
economic environment. The Group Group monitors it’s current debt as summarised below:
reviews the reliability of its customers facilities and comply both with
on a regular basis, such a review its gross borrowings to adjusted FINANCE

Current Non-Current
Within 1–3 3–12 1–5 After
1 month months months years 5 years
£ £ £ £ £
Trade and other payables 995 1,958 1,192 - -
Borrowings - 147 442 897 -

The above amounts reflect the contractual undiscounted cash flows, which may differ from the carrying values of
the liabilities at the reporting date.

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