Issue link: http://itf.uberflip.com/i/1537492
05 Consolidated Statement of Financial Posi on The ITF reserves policy provides for holding funds for long-term financial stability and for investment in Strategic Projects. Net Assets of the ITF Group have decreased from $43.3m at 31 December 2023 to $31.9m at 31 December 2024, including $5.6m (2023: $5.8m) of investment in the Billie Jean King Cup, and must be seen in the context of decisions to con nue making high levels of payments for the Davis Cup to provide con nuity and maintain the posi oning of the compe on whilst long term plans are developed. Intangible Assets includes capital investment in digital transforma on projects amoun ng to $4.2m in 2024 (2023: $2.7m) with addi ons of $3.1m in the year exceeding deprecia on charges of $1.7m. Trade and other receivables decreased to $38.6m in the year (2023: $57.2m). In 2024, with the Davis Cup Finals taking place in November, a few significant sums remained outstanding at the year end, the majority of which have been received in the new year. In addi on, contract assets decreased by $16.2m with Data Sales income having been received before year-end. Investments of $22.8m (2023: $20.9m) represent an increase in the value of the ITF investment por olio arising from investment gains of $2.1m offset by management fees of $0.2m. The deriva ve financial instruments liability of $0.9m (2023: asset of $0.9m) represents forward contract foreign cash flow hedges treated in the accounts as described in note 5(o), with the fair value adjustment arising on 31 December 2024 being taken to reserves in line with hedge accoun ng requirements. Further detail is provided in notes 34 and 37(d) to the financial statements. We have implemented strategies to increase cash by reducing debtors and managing creditor payment terms, thereby releasing more funds for opera onal cash requirements. Cash at bank and in hand has increased accordingly to $8.9m (2023: $5.8m). Conclusion and Outlook The reduc on in Net Assets in the year is in large part due to decisions to maintain the flow of funds to member Na onal Associa on through our major compe ons, data rights and development programmes, alongside con nued investment in strategic projects, despite a drop in revenues. In taking those decisions the Board has given due regard to future projec ons and believes the temporary reduc on in Net Assets is jus fied and current projec ons demonstrate that they can be replenished in future years. I would like to take this opportunity to thank the execu ve, the staff and my fellow members of the Finance Commi ee and Audit Commi ee for their hard work and commitment to the ITF. David Rawlinson Chairman of the Finance Commi ee