Issue link: http://itf.uberflip.com/i/1537492
35 (c) Liquidity risk Financial risk management Liquidity risk is the risk that the group will not be able to meet its financial obliga ons as they fall due. The group has substan al cash and liquid investment balances and does not require any external funding of its opera ons. Processes are in place to issue invoices on a mely basis, monitor cash collec on closely and chase overdue balances promptly, in order to minimise liquidity risk. This is par cularly the case in respect of sponsorship income collec on, where the amounts involved can be significant. The following are the undiscounted contractual maturi es of financial liabili es, including es mated interest payments and excluding the effect of ne ng agreements: (d) Cash flow hedges The following table indicates the periods in which the cash flows associated with cash flow hedging instruments are expected to occur: The forward exchange contracts are being used to hedge the foreign currency risk of the firm commitments. The hedge ra o is 1:1 (2023: 1:1). The change in value of the outstanding hedging instruments since 1 January 2024 is similar to the change in value of the hedged items used to determine hedge effec veness. The foreign currency forwards are denominated in the same currency as the highly probably future expenditure (GBP), therefore the hedge ra o is 1:1. In hedges of future cash flows, ineffec veness may arise if the ming of the forecast transac on changes from what was originally es mated, or if there are changes in the credit risk of the deriva ve counterparty or country in which they or the group are based. There was no ineffec veness during 2024 or 2023 in rela on to foreign exchange hedges. Carrying amount 2024 $000 Contractual cash flows 2024 $000 1 year or less 2024 $000 Between 1 & 2 years 2024 $000 Carrying amount 2023 $000 Contractual cash flows 2023 $000 1 year or less 2023 $000 Between 1 & 2 years 2023 $000 Non-deriva ve financial liabili es Trade and other payables (8,267) (8,267) (8,267) - (19,780) (19,780) (19,780) - Accruals (15,827) (15,827) (15,827) - (16,486) (16,486) (16,486) - Lease liabili es - - - - - - - - Deriva ve financial liabili es Forward exchange contracts used for hedging: Ou low (43,062) (43,062) (33,862) (9,200) (39,235) (39,235) (28,102) (11,133) Inflow 42,144 42,144 33,282 8,862 40,179 40,179 25,156 15,023 (25,012) (25,012) (24,674) (338) (35,322) (35,322) (39,212) 3,890 Carrying amount 2024 $000 Contractual cash flows 2024 $000 1 year or less 2024 $000 Between 2 & 5 years 2024 $000 Carrying amount 2023 $000 Contractual cash flows 2023 $000 1 year or less 2023 $000 Between 2 & 5 years 2023 $000 Assets - - - - 944 944 793 151 Liabili es 918 918 581 337 - - - - 918 918 581 337 944 944 793 151