b'Notes to the consolidated financial statements continuedFor the year ended 31 March 202022. Lease liabilities continuedThe following table shows the operating lease commitments disclosed when IAS 17 was applied at 31 March 2019, discounted using the borrowing rate at the date of initial application and the lease liabilities recognised in the Groups consolidated balance sheet at the date of initial application.000Operating lease commitments as at 31 March 2019 1,370Short-term leases and leases of low-value assets (42)Effect of discounting operating lease commitments as at 31 March 2019 (591)Lease liabilities recognised as at 1 April 2019 737The Group has recognised 737,000 of right-of-use assets and 737,000 of lease liabilities on transition to IFRS 16 with effect from 1 April 2019. As at 31 March 2020, the Group had no lease liabilities in respect of leases committed to but not yet commenced.The table below summarises the lease costs for the financial year ended 31 March 2020.000Depreciation expense 139Interest expense 26Low-value and short-term lease expense 218The maturity profile of the Groups IFRS 16 leases is set out in the table below.000Due within one year 118Due between two and five years 47359123. Deferred considerationAs at As at31 March 31 March2020 2019000 000Payable within one year 1,736 Payable within two to five years 4,446 6,182 On 23 December 2019 Mercia completed the acquisition of the VCT fund management business of NVM Private Equity LLP for a total maximum consideration of 25,000,000 comprising a combination of cash and new Ordinary Mercia shares. The initial consideration was 16,600,000, with deferred consideration of up to 8,400,000 also being payable, contingent upon certain conditions being met. The deferred consideration comprises6,300,000in cash, payable in three equal instalments on the first, second and third anniversaries of completion, provided that no termination notice has been served by any of the Northern VCTs before each respective anniversary payment date, and 2,100,000payable in new Ordinary Mercia shares. There are no indications to date that notice will be given and so the fair value payable has been recognised, discounted back to the acquisition date at a rate of 10%.50% of the deferred consideration shares will be payable if the Group has received at least16,000,000of fees in respect of the Northern VCT fund management contracts in the three years post completion. The remaining 50% of the deferred consideration shares will be allotted and issued if, during the same three-year period, the Northern VCTs collectively raise at least 60,000,000in new capital. If either or both of these conditions are met the number of new Ordinary shares to be issued to satisfy the deferred share consideration will be calculated based on the average of the daily closing mid-market price for an Ordinary Mercia share, for each of the five days immediately preceding the date of issue. The fair value of this element of the deferred consideration has been based on a weighted probability of outcomes over the three-year period and discounted by 10%. 96 Mercia Asset Management PLCAnnual Report and Accounts 2020'