LucyGroup-ARA2024_spreads web ready_FINAL

NOTES TO THE ACCOUNTS CONTINUED

BUSINESS OVERVIEW STRATEGIC REPORT CORPORATE GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDER INFORMATION

26. Financial instruments and risk management continued d) Categories of Financial Instruments A summary of the classifications of the financial assets and liabilities held by the Group is set out in the following table:

26. Financial instruments and risk management continued iv) Cash and cash equivalents Cash and cash equivalents comprise cash at bank and in hand, short-term cash deposits and cash balances held by the Group’s investment managers and solicitors. v) Cash on deposit Cash held on deposit with a maturity date of more than three months. 27. Equity share capital

2024

2023

Non- current £000

Non- current £000

Current £000

Total £000

Current £000

Total £000

Financial assets at fair value through OCI Listed equity investments Total financial assets at fair value through OCI (i)

2024 £000

2023 £000

2,981 2,981

– –

2,981 2,981

2,626 2,626

– –

2,626 2,626

– –

53,656 53,656

53,656 53,656

Trade receivables

– –

55,066 55,066

55,066 55,066

Authorised: 495,000 ordinary shares of £1 each Allotted, called-up and fully paid: 491,885 ordinary shares of £1 each

Total financial assets at amortised cost (ii)

495

495

Derivative financial instruments (iii) Cash and cash equivalents (iv)

– – –

–

–

– – –

209

209

492

492

81,473 30,453

81,473 30,453

63,091 10,000

63,091 10,000

28. Other reserves The consolidated statement of changes in equity is shown on page 90. Further information on reserves is provided below: Capital reserves The capital reserve arose on redemption of ordinary shares in the Group’s companies. Retained earnings In accordance with IFRS, retained earnings include revaluation reserves, which are not distributable under UK law. The balance in the revaluation reserve at 31 December 2024 is £114.8m. Currency translation reserve The foreign currency reserve is used to record exchange differences arising from the translation of the consolidated financial statements of foreign subsidiaries and other foreign currency investments. Cash flow hedge reserve This includes the fair value of the movements on derivative financial instruments qualifying for hedge accounting under IFRS 9. 29. Commitments Capital At 31 December 2024, the Group had authorised the following future capital expenditure:

Cash on deposit (v)

Financial Liabilities Derivative financial instruments

–

592

592

–

– –

–

12,029

–

12,029 37,589 50,210

Interest-bearing loans and borrowings

13,959

13,959 42,629 56,588

–

37,589 38,181

Trade and other payables Total financial liabilities

–

42,629 42,629

12,029

13,959

The Group’s financial instruments resulted in the following income, expenses, gains and losses recognised in the Income Statement:

Financial assets Dividends from equity investments held at FVOCI

42

– – – –

42

33

–

33 56

– –

– –

Foreign exchange contracts Commodity contracts – copper

– –

56

153 209

153 242

Total

42

42

33

Financial liabilities Finance cost of interest-bearing loans and borrowings

– – – –

1,069

1,069

– – – –

1,040

1,040

87

87

Foreign exchange contracts Commodity contracts – copper

– –

– –

505

505

Total

1,661

1,661

1,040

1,040

i) Financial assets at fair value through Other Comprehensive Income Financial assets at fair value through Other Comprehensive Income comprise equity securities that are not held for trading. The Company has made an irrevocable election at initial recognition to recognise changes in fair value through Other Comprehensive Income rather than the Consolidated Income Statement. There were no such transactions during the year. ii) Trade and other receivables Amounts due from customers for goods and services provided by the Group in the course of ordinary business are classified as trade receivables. Settlement terms are generally 30–60 days and, as such, are all classified as current assets. The fair value of receivables is considered to be the same as their carrying amount, given the short-term nature of the asset. The Group’s policy for the impairment is shown under principal accounting policies. iii) Derivative financial instruments The Group’s policy for derivative financial instruments is disclosed in the principal accounting policies.

2024 £000

2023 £000

2,259

Contracted

6,002

367

Not contracted

129

30. Contingent liabilities The Group has given its bankers guarantees amounting to the equivalent of £10.1m (2023: £10.1m) in respect of tender and performance bonds and counter indemnities. Lucy Electric India (Private) Ltd’s dispute with CG Power was resolved during the year and the outstanding amount recovered. CG Power’s counter-claim was also withdrawn, concluding the litigation outstanding at the end of 2023.

116

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Lucy Group Ltd Annual Report & Accounts 2024

LUCYGROUP.COM

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