ICAP Annual Report 2009
Notes to the financial statements
Notes to the financial statements
18. Trade and other receivables
| Group | Company | |||
|---|---|---|---|---|
| As at 31 March 2009 £m |
As at 31 March 2008 £m |
As at 31 March 2009 £m |
As at 31 March2008 - as restated (note 1(a)) |
|
| Non-current receivables | ||||
| Other receivables | 14 | 10 | – | – |
| Current receivables | ||||
| Matched principal trade receivables | 30,454 | 36,936 | – | – |
| Deposits paid for securities borrowed | 880 | 771 | – | – |
| Other trade receivables | 216 | 196 | – | – |
| Impairment of other trade receivables | (4) | (1) | – | – |
| Financial assets held at fair value through the income statement | 5 | 4 | – | – |
| Derivative financial instruments | – | 1 | – | – |
| Amounts owed by subsidiaries | – | – | 37 | 322 |
| Amounts owed by associates | 4 | 3 | – | – |
| Other receivables | 102 | 69 | – | – |
| Prepayments | 82 | 57 | – | – |
| 31,739 | 38,036 | 37 | 322 | |
Financial assets held at fair value through the income statement include the Group’s investment in the Pronous fund which is currently in the process of being wound up in an orderly manner. The Group expects this asset to be substantially liquidated in the coming year.
As at 31 March 2009 and 31 March 2008, the fair value of trade and other receivables is not materially different from their book values.
Matched principal transactions are those where the Group acts as principal in the simultaneous commitment to sell securities between third parties. Such trades have no contractual settlement date and are complete only when both sides of the transaction are settled, and therefore an aged analysis of matched principal trade receivables is not appropriate. Substantially all matched principal receivables settle within a short period of time, usually within three days of trade date.
Deposits paid for securities borrowed represents the cash paid as collateral in a stock lending transaction. The Group acts as an intermediary between counterparties for collateralised stock lending transactions. Such trades are complete only when both the collateral and stock for each side of the transaction are returned. The gross amounts of collateral paid and received are disclosed on the balance sheet (notes 19 and 23).
In March 2009, the Company simplified its intra-Group lending and borrowing by netting amounts owed to or from subsidiaries. The amount due to the Company of £37m represents the loan to the employee share trusts for the purpose of acquiring the Company’s shares to settle commitments under the Group’s share schemes.
Other trade receivables represent amounts receivable in respect of agency business and information services. As at 31 March the following other trade receivables were past their normal settlement date but had not been impaired.
| As at 31 March 2009 £m |
As at 31 March 2008 £m |
|
|---|---|---|
| Over 30 days, but less than 90 days | 44 | 65 |
| Over 90 days, but less than 180 days | 11 | 19 |
| Over 180 days | 5 | 4 |
| 60 | 88 |
The impairment provision is based on historical data for the trade receivables of the Group and represents the expected reduction in the amount receivable as a result of invoicing errors and other disputes and specific provisions for doubtful debts.
| As at 31 March 2009 £m |
As at 31 March 2008 £m |
|
|---|---|---|
| As at 1 April | 1 | 1 |
| Charged to the income statement in the year | 4 | 1 |
| Released to the income statement in the year | (1) | (1) |
| As at 31 March | 4 | 1 |
The table below gives an indication of the concentration of the Group’s trade receivables by currency:
As at 31 March 2009
| Trade receivables | |||||||||||
| Sterling £m |
Dollar £m |
Euro £m |
Yen £m |
Other currencies £m |
Total £m |
||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Matched principal trade receivables | 1,637 | 19,661 | 3,627 | 4,091 | 1,460 | 30,476 | |||||
| Deposits paid for securities borrowed | – | 880 | – | – | – | 880 | |||||
| Other trade receivables | 40 | 107 | 30 | 5 | 12 | 194 | |||||
| 1,677 | 20,648 | 3,657 | 4,096 | 1,472 | 31,550 | ||||||
As at 31 March 2008
| Trade receivables | ||||||
| Sterling £m |
Dollar £m |
Euro £m |
Yen £m |
Other currencies £m |
Total £m |
|
|---|---|---|---|---|---|---|
| Matched principal trade receivables | 2,361 | 25,277 | 5,035 | 3,599 | 664 | 36,936 |
| Deposits paid for securities borrowed | – | 771 | – | – | – | 771 |
| Other trade receivables | 48 | 109 | 21 | 6 | 12 | 196 |
| 2,409 | 26,157 | 5,056 | 3,605 | 676 | 37,903 | |
The interest rate profile of the Group’s financial assets together with discussion of risk management are included in note 23.