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Trade and other receivables
 12 Months Ended
Dec. 31, 2021
Text block [abstract]  
Trade and other receivables
22. Trade and other receivables
 
 
All figures in £ millions
   
2021
     
2020
  
Current
                  
Trade receivables
   
 
853
 
      795  
Royalty advances
   
 
2
 
      2  
Prepayments
   
 
198
 
      189  
Investment in finance lease receivable
   
 
15
 
      18  
Accrued income
   
 
14
 
      12  
Other receivables
   
 
175
 
      102  
    
 
 
     
 
 
  
    
1,257
      1,118  
    
 
 
     
 
 
  
Non-current
                  
Trade receivables
   
 
1
 
      8  
Royalty advances
   
 
5
 
      3  
Prepayments
   
 
10
 
      13  
Investment in finance lease receivable
   
 
100
 
      112  
Accrued income
   
 
1
 
      1  
Interest receivable
   
 
8
 
      —    
Other receivables
   
 
4
 
      86  
    
 
 
     
 
 
  
    
129
      223  
    
 
 
     
 
 
  
Accrued income represents contract assets which are unbilled amounts generally resulting from assessments and services revenue streams where revenue to be recognised over time has been recognised in excess of customer billings to date. Impairment charges on accrued income assets are £nil (2020: £nil). 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. In addition to the above, there are trade receivables of £nil (2020: £6m) classified as held for sale (see note 32).
The movements in the provision for bad and doubtful debts are as follows:
 
All figures in £ millions
   
2021
     
2020
  
At beginning of year
   
 
(74
) 
      (92 ) 
Exchange differences
   
 
—  
 
      6  
Income statement movements
   
 
(15
) 
      (26 ) 
Utilised
   
 
26
 
      32  
Disposal of subsidiary
   
 
—  
 
      6  
    
 
 
     
 
 
  
At end of year
   
 
(63
) 
      (74 ) 
    
 
 
     
 
 
  
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 gross trade receivables is as follows:
 
All figures in £ millions
   
2021
     
2020
  
Within due date
   
 
766
 
      687  
Up to three months past due date
   
 
58
 
      73  
Three to six months past due date
   
 
20
 
      12  
Six to nine months past due date
   
 
13
 
      30  
Nine to 12 months past due date
   
 
5
 
      18  
More than 12 months past due date
   
 
55
 
      57  
    
 
 
     
 
 
  
Gross trade receivables
   
 
917
 
      877  
    
 
 
     
 
 
  
The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances and historical payment profiles, and assessment of forward-looking risk factors including, where relevant, factors specifically related to
COVID-19.
Management believes all the remaining receivable balances are fully recoverable.
The increase in trade receivables held by the Group is driven by revenue growth which has increased debtors despite strong collections and an overall reduction in the bad debt provision. Other
non-current
receivables have decreased due to the receipt of deferred proceeds in relation to the US
K-12
disposal; this receivable is now classified as current. Prepayments have increased due to timing differences on certain significant payments and lease receivables have decreased primarily due to payments received during the year.