22. Trade and other receivables
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All figures in £ millions |
2017 | 2016 | ||||||
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Current |
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Trade receivables |
739 | 961 | ||||||
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Royalty advances |
8 | 22 | ||||||
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Prepayments |
82 | 124 | ||||||
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Accrued income |
1 | 15 | ||||||
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Other receivables |
280 | 235 | ||||||
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| 1,110 | 1,357 | |||||||
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Non-current |
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Trade receivables |
21 | 21 | ||||||
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Royalty advances |
20 | 10 | ||||||
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Prepayments |
15 | 13 | ||||||
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Accrued income |
10 | 31 | ||||||
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Other receivables |
37 | 29 | ||||||
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| 103 | 104 | |||||||
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The carrying value of the Group’s trade and other receivables approximates its fair value. Trade receivables are stated net of provisions for bad and doubtful debts and anticipated future sales returns. The movements in the provision for bad and doubtful debts are as follows:
|
All figures in £ millions |
2017 | 2016 | ||||||
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At beginning of year |
(112 | ) | (64 | ) | ||||
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Exchange differences |
7 | (17 | ) | |||||
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Income statement movements |
(38 | ) | (53 | ) | ||||
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Utilised |
21 | 22 | ||||||
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Disposal through business disposal |
1 | — | ||||||
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Transfer to assets classified as held for sale |
5 | — | ||||||
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At end of year |
(116 | ) | (112 | ) | ||||
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Concentrations of credit risk with respect to trade receivables are limited due to the Group’s large number of customers, who are internationally dispersed.
The ageing of the Group’s trade receivables is as follows:
|
All figures in £ millions |
2017 | 2016 | ||||||
|
Within due date |
661 | 812 | ||||||
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Up to three months past due date |
187 | 232 | ||||||
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Three to six months past due date |
48 | 55 | ||||||
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Six to nine months past due date |
18 | 21 | ||||||
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Nine to 12 months past due date |
13 | 14 | ||||||
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More than 12 months past due date |
3 | 7 | ||||||
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Total trade receivables |
930 | 1,141 | ||||||
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Less: provision for sales returns |
(170 | ) | (159 | ) | ||||
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Net trade receivables |
760 | 982 | ||||||
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The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances and historical payment profiles. Management believes all the remaining receivable balances are fully recoverable.