Enterprise Inns plc Annual Report and Accounts 2012

Notes to the Accounts
at 30 September 2012
20. Trade and other receivables
Group
Company
2012
£m
2011
£m
2012
£m
2011
£m
Trade receivables 47 48 32 34
Amounts owed by subsidiary undertakings – – 463 413
Prepayments and accrued income 7 6 6 6
Other receivables 1 10 1 10
55 64 502 463
Group
Company
The ageing of trade receivables
at 30 September was as follows
2012
£m
2011
£m
2012
£m
2011
£m
Not past due 43 43 31 31
Up to 30 days overdue 3 3 1 2
31–60 days overdue 1 2 – 1
61–90 days overdue – – – –
More than 90 days overdue – – – –
47 48 32 34
Credit risk
There are no significant concentrations of credit risk within the Group. The Group is exposed to a small amount of
credit risk that is primarily attributable to trade receivables and cash balances. The Group’s objective is to minimise
this risk by carrying out credit checks where appropriate. The amount of trade and other receivables included in the
Balance Sheet are net of a bad debt provision which has been determined by management following a review of
individual receivable accounts and is based on prior experience and known factors at the Balance Sheet date after
taking into account collateral held in the form of cash deposits. Receivables are written off against the bad debt
provision when management considers that the debt is no longer recoverable.
At 30 September 2012 the value of collateral in the Group is £33 million (2011: £33 million) and in the Parent
Company is £23 million (2011: £23 million). This balance is held on the Balance Sheet in other payables.
An analysis of the provision held against trade receivables is set out below. This provision relates to trade receivables
which are primarily owed by Publicans.
2012
£m
Group
2011
£m
Company
Provision as at 1 October 2 2 1 1
Increase in provision during the year 2 2 1 1
Provision utilised during the year (1) (1) – –
Provision released during the year (1) (1) (1) (1)
Provision as at 30 September 2 2 1 1
There are no indications as at 30 September 2012 that debtors will not meet their payment obligations in respect
of the amount of trade receivables recognised in the Balance Sheet that are neither past due nor impaired. The
maximum amount of exposure to credit risk is the carrying value of trade receivables and the fair value of interest
rate swaps classified as financial assets. The Group’s credit risk on liquid funds is limited because the Group only
invests with banks and financial institutions with high credit ratings.
2012
£m
2011
£m
Our Accounts Annual Report 2011 2012
79