Trade and other receivables

12 Months Ended

Dec. 31, 2022

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Trade and other receivables

22. Trade and other receivables

All figures in £ millions	2022		2021
Current
Trade receivables		824		853
Royalty advances		1		2
Prepayments		200		198
Investment in finance lease receivable		17		15
Accrued income		15		14
Other receivables		82		175
		1,139		1,257
Non-current
Trade receivables		1		1
Royalty advances		5		5
Prepayments		12		10
Investment in finance lease receivable		104		100
Accrued income		2		1
Interest receivable		3		8
Other receivables		12		4
		139		129

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 (2021: £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 (2021: nil) 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	2022			2021
At beginning of year		(63	)		(74	)
Exchange differences		(3	)		–
Income statement movements		(18	)		(15	)
Utilised		12			26
Disposal of subsidiary		3			–
At end of year		(69	)		(63	)

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	2022		2021
Within due date and one month past due date		663		766
One to three months past due date		118		58
Three to six months past due date		25		20
Six to nine months past due date		14		13
Nine to 12 months past due date		14		5
More than 12 months past due date		60		55
Gross trade receivables		894		917

The Group reviews its bad debt provision at least twice a year following a detailed review of receivable balances, historical payment profiles, and assessment of relevant forward-looking risk factors including macroeconomic trends. Management believes all the remaining receivable balances are fully recoverable.

The decrease in trade receivables held by the Group is driven by current year disposals. Other current receivables have decreased due to the receipt of deferred proceeds in relation to the US K-12 disposal.