Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
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Notes to the Consolidated
Financial Statements continued
16 Trade and other receivables
2012
£000
2011
£000
Amounts falling due within one year
Trade receivables 54,146 58,835
Less: provision for impairment of trade receivables (6,471) (7,697)
Trade receivables – net of provision 47,675 51,138
Amounts owed by DMGT group undertakings 2,344 2,221
Other debtors 5,560 10,489
Prepayments 6,904 6,061
Accrued income 3,469 1,508
65,952 71,417
The average credit period on sales of goods and services is 30 days. Trade receivables beyond 60 days overdue are provided for based on estimated
irrecoverable amounts from the sale of goods and services, determined by reference to past default experience.
Credit terms for customers are determined in individual territories. Concentration of credit risk with respect to trade receivables is limited due to the
group’s customer base being large and diverse. Due to this, management believe there is no further credit risk provision required in excess of the normal
provision for doubtful receivables. There are no customers who represent more than 5% of the total balance of trade receivables.
As at September 30 2012, trade receivables of £24,263,000 (2011: £29,150,000) were not yet due.
As of September 30 2012, trade receivables of £15,469,000 (2011: £20,111,000) were past due for which the group has not provided as there has
been no significant change in their credit quality and the amounts are still considered recoverable. These relate to a number of independent customers
for whom there is no recent history of default. The average age of these receivables is 77 days (2011: 67 days). The group does not hold any collateral
over these balances. The ageing of these trade receivables is as follows:
2012
£000
2011
£000
Past due less than a month 7,156 11,956
Past due more than a month but less than two months 3,348 3,894
Past due more than two months but less than three months 1,985 2,168
Past due more than three months 2,980 2,093
15,469 20,111
As at September 30 2012, trade receivables of £14,414,000 (2011: £9,574,000) were impaired and partially provided for. The amount of the provision
was £6,471,000 (2011: £7,697,000). It was assessed that a portion of the receivables is expected to be recovered. The ageing of these receivables is
as follows:
2012
£000
2011
£000
Past due less than a month 7,713 116
Past due more than a month but less than two months 2,857 3,125
Past due more than two months but less than three months 1,123 1,373
Past due more than three months 2,721 4,960
14,414 9,574
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