MACFARLANE GROUP PLC DISCLOSUREOther Disclosures

Market Risk

Interest rate risk The Group borrows in currencies at floating rates of interest. It was not considered necessary to cover interest rate exposures by the use of financial instruments during 2024. A sensitivity analysis has been prepared based on bank interest rate exposures at the year-end date and the stipulated change taking place at the beginning of the financial year and held constant throughout the year. If interest rates had been 50 basis points higher and all other variables held constant, the Group’s profit before tax would have decreased by £47,000 (2023: £44,000). Currency risk The Group had three overseas subsidiaries in 2024, one operating in Ireland, one operating in the Netherlands and one operating in Germany. Revenues and expenses are denominated exclusively in Euros. Movements in the Euro to sterling exchange rates could affect the Group’s sterling balance sheet. The Group’s policy during 2024 has been to review the need to hedge currency exposures on a regular basis and it was not considered necessary to cover existing currency exposures by the use of financial instruments. The Group continues to review the need to hedge exposures on a regular basis. The Sterling value of foreign currency denominated assets and liabilities at the year-end is as follows: Assets Liabilities 2024 £000 2023 £000 2024 £000 2023 £000 Euros 8,334 7,105 2,964 2,936 The sterling value of the Group’s foreign currency denominated profit before tax from continuing operations is as follows: 2024 £000 2023 £000 Euros 2,902 1,679