Notes to the Consolidated Financial Statements for the year ended 30 June 2025 36 Icon Energy Annual Report 2025 ICON ENERGY LIMITED AND ITS CONTROLLED ENTITIES FOR THE YEAR ENDED 30 JUNE 2025 Sensitivity analysis (b) Credit risk (c) Liquidity risk Carrying Amount Contractual Cashflows <1Year 1-5 Years $ $ $ $ 30 June 2025 Trade and other payables 121,371 121,371 121,371 - Non-interest bearing borrowings 729,570 729,570 281,810 447,760 850,941 850,941 403,181 447,760 30 June 2024 Trade and other payables 172,693 172,693 172,693 - Non-interest bearing borrowings 445,389 445,389 - 445,389 618,082 618,082 172,693 445,389 Fair value estimation The trade and other receivables balance consist of 83% of trade receivables (2024: 86%) and 17% of receivables from the Australian Tax Office for goods and services tax refund (2024: 14%). The Consolidated Entity’s liquidity risk relating to financial liabilities at 30 June 2025 is limited to the repayment of the trade payables and borrowings. Trade payables are non-interest bearing and are normally settled on 30 day term. The borrowings are long-term non interest bearing. Liquidity risk is managed by monitoring cash flows, matching maturities of financial assets and liabilities, and entering contracts within approved authorities. Cash is held in high interest accounts to maximise income. Performance guarantee bonds are regularly reviewed to lift restrictions promptly. The following are contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted except for the non-interest bearing borrowings which are discounted using a standard business unsecured bank rate when initially measured and subsequently measured at amortised cost. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Credit risk arises from the financial assets of the Consolidated Entity which comprise cash and cash equivalents and trade and other receivables. The maximum exposure to credit risk is the carrying amount of these financial assets. The Consolidated Entity mitigates credit risk by dealing with counterparties with high credit ratings and by managing contract progress and values. NOTE 17 - FINANCIAL INSTRUMENTS (Continued) There is no significant concentration of credit risk with any single counterparty or group of counterparties. During the year the Consolidated Entity maintained all cash and cash equivalent balances with the fiancial institution holding an AA- rating based on a S&P Global ratings. Liquidity risk is the risk that the Consolidated Entity will be unable to meet its financial obligations as they fall due. The Board of Directors has implemented a liquidity risk management framework covering short, medium, and long-term funding and liquidity requirements. The net fair value of cash and cash equivalents and short-term non-interest bearing monetary financial assets and liabilities of the Consolidated Entity, as stated in the Consolidated Statement of Financial Position and accompanying explanatory notes as at 30 June 2025 and 30 June 2024, is a reasonable approximation of their carrying value. Non-interest bearing borrowing is initially recognised at their fair value and subsequently measured at amortised cost. Based on financial instuments at 30 June 2025, if the interest rates had increased / decreased by 0.5% from the periodend rates with all other variables held constant, post-tax profit for the year for the Consolidated Entity would have been $6,438 higher/$6,363 lower (30 June 2024: $9,685 higher/$9,728), mainly as a result of the Consolidated Entity’s exposure to interest rates on its variable rate cash and cash equivalents.
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