Issue link: http://itf.uberflip.com/i/1547012
The portfolio continues to be overseen by Cambridge Associates under an advisory mandate and is supervised by the ITF's Investment Advisory Panel, which includes independent industry experts, and which reports to the ITF Finance Committee and the ITF Board of Directors on a regular basis. The ITF would like to thank the outgoing independent members of the Investment Advisory Panel, Georges Gagnebin and Mario Campos for their services to the Committee. Consolidated Statement of Financial Position The ITF reserves policy, which is currently under review, provides for holding funds for long-term financial stability and for investment in Strategic Activities. Net Assets of the ITF Group have decreased from $31.9m at 31 December 2024 to $21.2m at 31 December 2025, including intangible assets of $4.6m (2024: $4.1m) being the net investment in digital transformation projects. The reduction in Net Assets can partially be accounted for by the investment in joint ventures having been written down from $5.6m in 2024 to nil in 2025. Trade and other receivables decreased to $31.9m in the year (2024: $38.6m) mainly due to aged debts having been received and upfront payments for commercial and hosting contracts. Investments of $30.0m (2024: $22.8m) represent an increase in the value of the ITF investment portfolio arising from investment gains of $4.1m in the year offset by management fees of $0.2m. The derivative financial instruments asset of $0.7m (2024: liability 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 2025 being taken to reserves in line with hedge accounting requirements. Further detail is provided in notes 33 and 38(d) to the financial statements. Strategies to increase cash by reducing debtors, managing creditor payment terms and structuring contracts to secure cash receipts in advance has increased operational cash by $3.3m. Cash at bank and in hand has increased accordingly to $12.2m (2024: $8.9m). Conclusion and Outlook Other than the negative impact of the impairment of the Billie Jean King Cup Investment on the Balance Sheet, the reduction in Net Assets in the year is largely due to factors outside normal activities and beyond management control, as well as maintaining high levels of support for National Associations through our major competitions, data rights and development programmes alongside continued investment in the World Tennis Number. Remedial actions have been implemented to return to annual surpluses from 2026 onwards and improve the Net Assets position to an acceptable level. I would like to take this opportunity to thank the executive, the staff and my fellow members of the Finance Committee and Audit Committee for their hard work and commitment to the ITF. David Rawlinson Chairman of the Finance Committee ITF Trust Annual Report and Consolidated Financial Statements 5