Page 88 - Beeks Financial Cloud Group Annual Report 2021

86 Beeks Financial Cloud Group PLC For the year ended 30 June 2021

Notes to the Consolidated Financial Statements

Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an
optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares
or sell assets to reduce debts.

2021 2020
£000 £000
Total equity 13,765 6,716

Cash and cash equivalents 3,372 1,433
Capital 17,137 8,149
Total equity 13,765 6,716
Other loans 1,485 2,158
Lease liabilities 2,866 2,535
Overall financing 18,116 11,409
Capital-to-overall financing ratio 0.95 0.71

15. CONTINGENT CONSIDERATION DUE ON ACQUISITIONS
2021 2020
£000 £000

Contingent consideration due on the acquisition of VMX Ltd - 2,445

At the prior year end, there was £0.49m of contingent consideration in relation to the first year earn out and £1.96m
for the second year earn out for the acquisition of Velocimetrics Ltd.
FINANCE
During the current year, the group settled the deferred consideration and the contingent consideration in relation
to the first year earn out in full at a total of £0.49m against the provision of £0.48m.

In the current period, the fair value of the final contingent consideration has been reassessed. Given the minimum
earn out revenue target was not met in the period, the full contingent consideration of £1.96m was credited to the
income statement.

2021 2020
16. NON-CURRENT LIABILITIES - BORROWINGS AND OTHER FINANCIAL LIABILITIES £000 £000

Other loans 896 1,461
Lease liabilities 2,210 1,991
3,106 3,452
Other loans
Under one year 589 697
Between one to five years 896 1,461
1,485 2,158