Peachtree 2013 Annual Report Download - page 117

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Operating assets and liabilities continued
The Sage Group plc | Annual Report & Accounts 2013 111
Financial statements
7 Working capital
7.1 Inventories
2013
£m
2012
£m
0.5 0.6
Finished goods 1.7 1.9
2.2 2.5
The Group consumed £14.2m (2012: £12.0m) of inventories, included in cost of sales, during the year. There was no material write down of
inventories during the current or prior year.
7.2 Trade and other receivables
A
mounts falling due within one year:
2013
£m
2012
£m
T
rade receivables 302.3 300.5
Less: provision for impairment of receivables (27.7) (30.3)
T
rade receivables – net 274.6 270.2
Other receivables 22.8 14.9
Prepayments and accrued income 13.8 17.7
311.2 302.8
The Group’s credit risk on trade and other receivables is primarily attributable to trade receivables. The Group has no significant concentrations of
credit risk since the risk is spread over a large number of unrelated counterparties. The directors estimate that the carrying value of financial assets
within trade and other receivables approximated their fair value.
The Group considers the credit quality of trade and other receivables by geographical location. The Group considers that the carrying value of the
trade and other receivables that is disclosed below gives a fair presentation of the credit quality of the assets. This is considered to be the case as
there is a low risk of default due to the high number of recurring customers and credit control policies; thus the carrying value is expected to be the
final value received.
Trade and other receivables by geographical location:
2013
£m
2012
£m
Europe 203.7 203.2
A
meric
a
s 72.8 62.4
A
AME
A
20.9 19.5
297.4 285.1
Movements on the Group provision for impairment of trade receivables were as follows:
2013
£m
2012
£m
A
t 1 Octobe
r
30.3 29.2
A
cquisition of subsidiaries –0.5
Disposal of subsidiaries (2.3) –
Increase in provision for receivables impairment 10.0 9.9
Receivables written-off during the year as uncollectible (6.0) (3.3)
Unused amounts reversed (3.5) (4.1)
Exchange movement (0.8) (1.9)
A
t 30 September 27.7 30.3
115The Sage Group plc | Annual Report & Accounts 2013
GovernanceStrategic report Financial statements