Notes to the financial statements
For the 52 weeks ended 1 March 2008
20. Trade and other receivables
| Current 2008 £m |
Non–current 2008 £m |
Current 2007 £m |
Non-current 2007 £m |
|
|---|---|---|---|---|
| Trade receivables: | ||||
| – Instalment receivables | 488.9 | 1.7 | 459.4 | 12.5 |
| – Other trade receivables | 75.3 | – | 73.8 | – |
| 564.2 | 1.7 | 533.2 | 12.5 | |
| Less: provision for impairment of receivables | (60.8) | (0.6) | (57.4) | (1.4) |
| 503.4 | 1.1 | 475.8 | 11.1 | |
| VAT recoverable | – | – | 0.2 | – |
| Prepayments and accrued income | 94.4 | 3.7 | 93.4 | 6.9 |
| 597.8 | 4.8 | 569.4 | 18.0 | |
The carrying values of current trade and other receivables are a reasonable approximation of their fair values. Fair values of long-term receivables have been discounted where the time value of money is material. All receivables due after more than one year are due within five years from the balance sheet date. There is no concentration of credit risk with respect to trade receivables, as Home Retail Group has a broad customer base. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. The Group does not hold any collateral as security.
As of 1 March 2008, trade receivables of £76.4m (2007: £75.5m) were impaired. The amount of the provision was £61.4m as of 1 March 2008 (2007: £58.8m). The individually impaired receivables mainly relate to store card holder balances on customer accounts on which indications of possible default have been identified.
Movements in the provision for impairment of trade receivables are as follows:
| £m | |
|---|---|
| At 1 April 2006 | 51.4 |
| Charge for the period | 39.0 |
| Utilised | (31.6) |
| At 3 March 2007 | 58.8 |
| Charge for the period | 36.6 |
| Utilised | (34.0) |
| At 1 March 2008 | 61.4 |
As of 1 March 2008, trade receivables of £24.2m (2007: £28.4m) were past due but not impaired. These relate to corporate customer receivable balances. The ageing analysis of these trade receivables is as follows:
| 2008 £m |
2007 £m |
|
|---|---|---|
| Less than 3 months | 22.2 | 27.1 |
| 3 to 6 months | 1.5 | 1.0 |
| 6 to 9 months | 0.3 | 0.2 |
| 9 to 12 months | 0.2 | 0.1 |
| 24.2 | 28.4 |
The other classes within trade and other receivables do not contain impaired assets.
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