Financial instruments

	As at June 30				As at March 31
(US dollars in thousands)	20 20		2019		2019		201 8
Financial assets at amortized cost
Trade and other receivables		8,587		8,144		7,971		7,392
Cash and cash equivalents		2,824		7,129		4,522		1,939
Restricted cash		1,013		632		1,319		-
Total		12,424		15,905		13,812		9,331

Financial l iabilities at amortized cost
Loans and borrowings	25,954	21,686	19,267	22,340
Trade and other payables	7,504	12,281	11,016	11,724
Total	33,458	33,967	30,283	34,064

The amounts disclosed in the above table for trade and other receivables and payables do

not

agree to the amount reported in the Company's Consolidated Statement of Financial Position as they exclude prepaid expenses, payroll and sales tax payable, current tax receivables and contract assets and liabilities which do

not

meet the definition of financial assets or liabilities.

(a) Financial risk management

The Group's principal financial instruments are bank balances, cash and medium-term loans. The main purpose of these financial instruments is to manage the Group's funding and liquidity requirements. The Group also has other financial instruments such as trade receivables and trade payables which arise directly from its operations.

The Group is exposed through its operations to the following financial risks:

●

Liquidity risk

●

Credit risk

●

Interest rate risk

●

Foreign currency risk

The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework. Policy for managing risks is set by the Chief Executive Officer and is implemented by the Group's finance department. All risks are managed centrally with a tight control of all financial matters.

(b) Liquidity risk

Liquidity risk is the risk that the Group will

not

be able to meet its financial obligations as they fall due. The Group considers that it has

significant liquidity risk. The Group held unrestricted cash resources of

$2.8

million at

June 30, 2020 (

June 30, 2019:

$7.1

million;

March 31, 2019:

$4.5

million;

2018:

$1.9

million). The ratio of current assets to current liabilities at

June 30, 2020

1.04

(

June 30, 2019:

1.25;

March 31, 2019:

1.43;

2018:

1.03

). During the year ended

March 31, 2019,

the Group established a

$3.6

million debtor finance facility to support its working capital requirements, of which only

$0.5

million was drawn at

June 30, 2020 (

June 30, 2019:

$0.9

million;

March 31, 2019:

$0.8

million). In addition, the Group maintains near-term cash flow forecasts that enable it to identify its borrowings requirement so that remedial action can be taken if necessary.

Contractual maturities of financial liabilities, including interest payments, are as follows:

Year Ended June 30, 20 20 (US dollars in thousands)	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Contractual maturity of financial liabilities
Trade and other payables (financial liabilities)		7,504		7,504		-		-		-
Borrowings		24,598		688		23,873		37		-
Lease liabilities		1,356		649		654		53		-
Total		33,458		8,841		24,527		90		-

Three Months Ended June 30, 2019 (US dollars in thousands)	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Contractual maturity of financial liabilities
Trade and other payables (financial liabilities)		12,281		12,281		-		-		-
Borrowings		23,397		3,859		19,538		-		-
Lease liabilities		1,991		692		1,077		222		-
Total		37,669		16,832		20,615		222		-

Year Ended March 31, 2019 (US dollars in thousands)	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Contractual maturity of financial liabilities
Trade and other payables (financial liabilities)		11,016		11,016		-		-		-
Borrowings		22,480		2,556		19,924		-		-
Lease liabilities		290		147		143		-		-
Total		33,786		13,719		20,067		-		-

Year Ended March 31, 2018 (US dollars in thousands)	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
Contractual maturity of financial liabilities
Trade and other payables (financial liabilities)		11,724		11,724		-		-		-
Borrowings		25,896		5,498		14,111		6,287		-
Lease liabilities		619		291		328		-		-
Total		38,239		17,513		14,439		6,287		-

The primary risk arises from the Group's receivables from customers and contract assets. The majority of the Group's customers are long standing and have been a customer of the Group for many years. Losses have occurred infrequently. The Group is mainly exposed to credit risks from credit sales, but the Group has

significant concentrations of credit risk and keeps the credit status of customers under review. Credit risks of customers of new customers are reviewed before entering into contracts. The debtor exposure is monitored by Group finance and the local entities review and report their exposure on a monthly basis.

The Group does

not

consider the exposure to the above risks to be significant and has therefore

not

presented a sensitivity analysis on the identified risks.

The credit quality of debtors neither past due nor impaired is good. Refer to Note

for further analysis on trade receivables.

(d) Foreign currency risk

The Group operates internationally and is exposed to foreign exchange risk on sales and purchases that are denominated in currencies other than the respective functional currencies of the Group entities to which they relate, primarily with respect to GBP and USD, but also between USD and AUD.

The Group's investments in overseas subsidiaries are

not

hedged as those currency positions are either USD denominated and/or considered to be long-term in nature.

The Group is exposed to foreign exchange risk on the following balances at

June 30, 2020:

●

Cash and cash equivalents

$2.3

million denominated in AUD and

$0.1

million denominated in GBP.

●

Restricted cash

$1.0

million denominated in AUD.

●

Trade and other receivables

$12.3

million denominated in AUD and

$0.2

million denominated in GBP.

●

Trade and other payables

$10.6

million denominated in AUD and

$1.5

million in GBP.

●

Borrowings

$2.5

million denominated in AUD.

●

Provisions

$2.0

million denominated in AUD and

$1.1

million in GBP.

The non-current shareholder loan of

$23.4

million is denominated in USD, upon which there is

foreign currency risk.

(e) Interest rate risk

As a result of the related party loan agreement the Group is exposed to interest rate volatility. However, the interest rate is fixed for the medium term, therefore, the risk is largely mitigated for the near future. The Group will continue to monitor the movements in the wider global economy.