Notes to the Consolidated Financial Statements (continued)

13. Borrowings

The Group’s fixed rate borrowings of £9.7m (2021: £10.41m) are at a fixed rate until 2028. Interest costs will not increase or decrease as a result of interest rate fluctuations. The Group’s variable rate borrowings of £16.5m (2021: £15.5m) are at floating rates of interest. Interest costs may increase or decrease as a result of interest rate fluctuations.

The bank borrowings are secured on inventory and investment property to the value of £56.4m (2021: £56.4m) and bear an average interest rate of 3.33% (2021: 3.62%). The maturity analysis of the borrowings is included in Note 3.

All other variables held constant, there would have been no impact on the profit for the year due if interest rates had increased or decreased by 25 basis points on 31 December 2022 due to the capitalisation of the borrowing costs.

The fair value of borrowings approximated their carrying value at the date of the Consolidated Statement of Financial Position.

The Group has the following undrawn floating rate borrowing facilities:

14. Retention money payable

The retention money payable refers to a percentage of the contract price due to contractors responsible for the Group’s developments.

15. Trade and other payables

Within accruals and deferred income is accrued interest amounting to £84,365 (2021: £60,783).

The provision for dilapidation as a result of the Group’s obligation to restore Dialogue House to a specific state under the terms of its expired lease with the landlord of Dialogue House has been fully utilised.

As a result of the new lease with the landlord of Dialogue House entered into in January 2022, a new provision for dilapidation has been made to reflect the Group’s obligation to restore its Dialogue House office space to a specific state under the terms of its new lease.