Page 90 - Beeks Financial Cloud Group Annual Report 2021

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

Notes to the Consolidated Financial Statements

18. LEASES
The Group leases assets including the space in data centres in order to provide infrastructure services to its
customers, and for the Head Office lease in relation to its Glasgow Headquarters. Information about leases for
which The Group is a lessee is presented below:

Leasehold
Right-of-use assets Property and
improvement
£000

Balance at 1 July 2020 2,357
Additions 915
Depreciation (619)
Balance at 30 June 2021 2,653

The right-of-use assets in relation to leasehold property are disclosed as PPE (note 10).

2021 2020
Lease Liabilities Note £000 £000
Maturity analysis:
Within one year (806) (643)

Within two to five years (2,269) (2,195)
After more than five years - -
Add: unearned interest 209 303
Total lease liabilities (2,866) (2,535)
Analysed as:
FINANCE
Non-current 14 (2,210) (1,991)
Current 14 (656) (544)

(2,866) (2,535)

The Group does not face a significant liquidity risk with regard to its lease liabilities. The interest expense on lease
liabilities amounted to £99,026 for the year ended 30 June 2021. Lease liabilities are calculated at the present value
of the lease payments that are not paid at the commencement date.

The Group has elected not to recognise a lease liability for short-term leases (leases with an expected term of 12
months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight
line basis. During the year ended 30 June 2021, in relation to leases under IFRS 16, The Group recognised the
following amounts in the consolidated statement of comprehensive income:
2021 2020
£000 £000

Short-term and low value lease expense 25 25
Depreciation charge 619 582
Interest expense 99 87