Notes to the Consolidated Financial Statements continuedfor the year ended 31 December 2007
19 Trade and other receivables
|Repurchase agreement receivables (during vehicle holding period)||825.4||836.1|
|Prepaid vehicle operating lease charges (during vehicle holding period)||53.5||71.2|
|Other vehicle receivables (after the end of vehicle holding period)||175.6||134.9|
|Amounts due from leasing companies||57.6||40.2|
|Vehicle related receivables||1,112.1||1,082.4|
|Other trade debtors||173.0||154.0|
|Finance revenue debtors||0.1||0.1|
The carrying amounts of trade and other receivables are denominated primarily in Euro. Other vehicle receivables include amounts due after exercising of manufacturer repurchase agreements.
Vehicle related receivables include €162.4 million (2006: €167.9 million) held under finance lease arrangements in respect of repurchase agreements.
With respect to vehicle related receivables, credit risk is concentrated with the main European vehicle manufacturers, whilst concentrations of credit risk with respect to non-vehicle related receivables are limited due to the diversity of the Group’s customers. The maximum exposure to credit risk at the reporting date is the fair value of each class of receivable mentioned above. Balance sheet amounts are stated net of provisions made for bad and doubtful debts, and accordingly, the Directors believe that the maximum credit risk exposure is the carrying amount of the receivables in the balance sheet, as shown below.
The main categories of trade and other receivables that are subject to credit risk are: other vehicle receivables (after the end of vehicle holding period), amounts due from leasing companies, other trade debtors, finance revenue debtors and other debtors. These categories are analysed as follows:
|Trade and other receivables subject to credit risk||488.8||425.6|
|Neither past due nor impaired||(384.6)||(341.4)|
|Provision for bad and doubtful debts||(24.0)||(25.9)|
|Past due but not impaired||80.2||58.3|
As at 31 December 2007, €80.2 million (2006: €59.8 million) were past due but not impaired. These were not considered as impaired as there had been no previous history of default. The ageing analysis of past due but not impaired is as follows:
|Up to three months past due||73.6||55.1|
|Three to six months past due||6.4||2.0|
|Over six months past due||0.2||1.2|
The other classes within trade and other receivables do not contain impaired assets.
The provision for bad and doubtful debts has been determined by reference to past experience. Irrecoverable trade and other receivable expense of €6.1 million (2006: €5.4 million) has been recognised in the Income Statement in the year.