5.3a) Cash The Group operates investment guidelines with respect to surplus cash. Counterparty limits for cash deposits are largely based upon long-term ratings published by credit rating agencies and credit default swap rates. Deposits are placed with financial institutions with A- or better credit ratings. 5.3b) Trade receivables The Group’s customers can be split into two groups – (i) students (individuals) and (ii) commercial organisations including universities. The Group’s exposure to credit risk is influenced by the characteristics of each customer. 5.3c) Joint ventures Amounts receivable from joint ventures fall into two categories – working capital balances and investment loans. The Group has strong working relationships with its joint venture partners, and the joint ventures themselves have strong financial performance, retain net asset positions and are cash generative, and therefore the Group views this as a low credit risk balance. No impairment has therefore been recognised in 2025 and 2024. 5.4 Trade and other payables Accounting policies Trade payables are initially recognised at the value of the invoice received from a supplier (fair value) and subsequently at amortised cost. The carrying value of trade payables is considered approximate to fair value. Group amounts are payable on demand. Trade and other payables due within one year can be analysed as follows: Group Company 2025 2024 2025 2024 £m £m £m £m Trade payables 52.6 73.7 - Retentions on construction contracts for properties 11.2 8.1 - Amounts due to Group undertakings 187.1 Other payables and accrued expenses 134.5 95.3 22.8 Deferred income 31.9 78.4 - Trade and other payables 230.2 209.9 Included within other payables and accrued expenses is £23.2 million of capital expenditure accruals (2024: £19.4 million). 5.5 Transactions with other Group companies The Company was charged by Unite Integrated Solutions plc for corporate costs of £5.0 million (2024: £5.0 million). The following amounts were due from/to the Company’s subsidiaries at the year-end. 2025 £m Unite Holdings Limited 116.9 LDC (Holdings) Limited 1,607.5 Liberty Living Group 1,909.1 LDC (Portfolio) Ltd 127.0 Amounts due from Group undertakings 3,760.5 Unite Integrated Solutions plc 187.1 Amounts due to Group undertakings 187.1 The Parent Company has received management fees from its joint ventures, which are disclosed in note 3.4c. The Company ensures the recoverability of intercompany receivable balances at the balance sheet date by ensuring that the counterparties have sufficient net assets to settle the balance outstanding. 255.5 - - 102.1 24.8 - 126.9 2024 £m 121.9 1,658.0 1,509.2 127.0 3,416.1 102.1 102.1 THE UNITE GROUP PLC Annual Report and Accounts 2025 193