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Trade and other receivables

12 Months Ended

Dec. 31, 2024

A3. Trade and other receivables

The Group’s trade receivables are recognised at the transaction price less provision for impairment. They are generally due for settlement within 30 days and are all classified as current. The amount of the provision for impairment is recognised in the income statement and movements on provisions for impaired trade receivables are recognised within operating expenses in the income statement. Amounts are generally charged to the provision for impairment of trade receivables when there is no expectation of recovering additional cash.

Expected credit loss (ECL) calculations are performed and are used to calculate the provision for impairment of trade receivables. ECL calculations are a probability-weighted estimate of credit losses and are performed at country level. The Group applies the simplified method of applying lifetime ECLs to trade receivables using an allowance matrix to measure the ECLs of trade receivables from its customers, which comprise customer portfolios across several countries. Credit risk factors that are considered as part of ECL calculations may include, but are not limited to: payment history, customer size, customer type (national/residential/commercial/government), age of debt, industry strength, economy, environmental factors such as climate change, and product or service provided.

Loss allowances are also calculated on other financial assets, although the amounts are generally not significant and the asset is recognised net of the allowance.

There is limited concentration of credit risk with respect to trade receivables due to the Group’s customer base being large and diverse. The amount of credit risk with respect to customers is represented by the carrying amount on the balance sheet. The Group policy is that credit facilities for new customers are approved by designated managers at regional level. Credit limits are set with reference to trading history and reports from credit rating agencies where they are available. Where this is not feasible, the Group may request payment in advance of work being carried out, or settlement by credit card on completion of the work. There are no trade receivables that would otherwise be past due or impaired whose terms have been renegotiated.


	2024	2023
	£m	£m
Trade receivables	705	692
Less: provision for impairment of trade receivables	(65)	(70)
Trade receivables – net	640	622
Other receivables¹	128	113
Prepayments	77	68
Accrued income	118	118
Contract assets	3	4
Total	966	925

Analysed as follows:
Non-current	57	45
Current	909	880
Total	966	925

1.	Other receivables are stated net of loss allowance of £nil (2023: £nil).

All of the Group’s provision for impairment relates to trade receivables. Analysis of the Group’s provision for impairment of trade receivables is as follows:


	2024	2023	2022
	£m	£m	£m
At 1 January	70	70	50
Exchange differences	(1)	(4)	—
Additional provision	62	48	30
Receivables written off as uncollectable	(63)	(38)	(27)
Unused amounts reversed	(6)	(8)	(5)
Acquisition of companies and businesses	3	2	22
At 31 December	65	70	70

The ageing of trade receivables and provision for impairment is as follows:


	Trade	Provision for	Trade	Provision for
	receivables	impairment	receivables	impairment
	2024	2024	2023	2023
	£m	£m	£m	£m
Not due	288	—	286	(3)
Overdue by less than 1 month	170	(1)	158	(3)
Overdue by between 1 and 3 months	122	(3)	111	(5)
Overdue by between 3 and 6 months	54	(11)	56	(9)
Overdue by between 6 and 12 months	39	(20)	36	(15)
Overdue by more than 12 months	32	(30)	45	(35)
At 31 December	705	(65)	692	(70)

The carrying amounts of the Group’s trade receivables are denominated in the following currencies:


	2024	2023
	£m	£m
Pound sterling	57	51
Euro	160	161
US dollar	302	291
Other currencies	186	189
Carrying value	705	692

Fair value is considered to be equal to carrying value for all trade and other receivables.