ITF

38 e) Market risk Financial risk management Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices, will affect the group's income or the value of its holdings of financial instruments. The group's financial risk management objec ve is to control the exposure to foreign exchange fluctua ons especially in Sterling and to a lesser extent the Euro and Australian Dollar, against the US Dollar. Sterling: The group has entered into forward currency contracts to buy £42,750,000 (2022: £37,300,000) at an average exchange rate of US$1.2383/£1 for hedges expiring in 2024 and US$1.2571 for hedges expiring in 2025 (2023: US$1.2915/£1 expiring in 2024 and US$1.1907 expiring in 2024). These contracts mature at various dates throughout 2024 and 2025 to match budgeted Sterling expenditure. The fair value of these hedges, based on the mark to market valua ons of the contracts at the balance sheet date, using prices on that date to purchase the same forward contracts, was an asset of $793,000 (2022: liability of $1,897,000) with a corresponding entry in reserves. A movement of $0.01 in the mark to market valua on would result in a change in the fair value of $428,000 on the Sterling hedges contracts (2022: $373,000). The group's exposure to foreign currency risk is as follows. This is based on the carrying amount for monetary financial instruments except deriva ves when it is based on no onal amounts: Sterling $000 Euro $000 US Dollar $000 Other $000 Total $000 31 December 2023 Cash at bank and in hand 826 1,336 1,445 2,218 5,825 Trade receivables 1,211 1,604 33,960 180 36,955 Investments - - 20,920 - 20,920 Trade payables (5,154) (105) (14,450) 139 (19,570) Forward exchange contracts - - 944 - 944 Net exposure (3,117) 2,835 42,819 2,537 45,074 Sterling $000 Euro $000 US Dollar $000 Other $000 Total $000 31 December 2022 Cash at bank and in hand 197 772 16,156 2,194 19,319 Trade receivables 524 694 14,697 78 15,993 Investments - - 40,679 - 40,679 Trade payables (2,450) (50) (6,869) 66 (9,303) Forward exchange contracts - - (1,814) - (1,814) Net exposure (1,729) 1,416 62,849 2,338 64,874 NOTES (CONTINUED, FORMING PART OF THE FINANCIAL STATEMENTS) Price risk The group's exposure to equity securi es price risk arises from investments held by the group and classified in the balance sheet as fair value through profit or loss. To manage its price risk arising from investments, the group diversifies its por olio in accordance with the limits set by the group. All the group's investments are publicly traded. Notes

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