2021 | 2020 | |
€m | €m | |
Trade receivables | 47.3 | 45.8 |
Allowance for expected credit losses | (1.8) | (1.7) |
45.5 | 44.1 | |
Prepayments | ||
Deposit on vessel | 3.2 | - |
Deposits relating to other property, plant and equipment | 5.4 | 2.6 |
Other prepayments | 2.5 | 4.0 |
Finance lease receivable (note 16) | 3.0 | 2.8 |
Other receivables | 2.3 | 2.2 |
61.9 | 55.7 |
The Group and Company extend credit to certain trade customers after conducting a credit risk assessment. Year-end trade receivables represent 52 days sales at 31 December 2021 (2020: 57 days). Deposits paid relating to other property, plant and equipment include advance payments for services or goods where title has not transferred at the period end.
The Group’s trade receivables are analysed as follows:
Gross value | Expected credit losses | Net value | Gross value | Expected credit losses | Net value | |
2021 | 2021 | 2021 | 2020 | 2020 | 2020 | |
€m | €m | €m | €m | €m | €m | |
Not past due | ||||||
Within terms | 42.6 | (1.0) | 41.6 | 42.6 | (1.1) | 41.5 |
Past due | ||||||
Within 3 months | 4.4 | (0.5) | 3.9 | 2.6 | (0.4) | 2.2 |
After 3 months | 0.3 | (0.3) | - | 0.6 | (0.2) | 0.4 |
47.3 | (1.8) | 45.5 | 45.8 | (1.7) | 44.1 |
Expected credit losses
The Group has applied the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. The concentration of credit risk is limited due to the exposure being spread over a large number of counterparties and customers. In measuring the expected credit losses, the trade receivables have been grouped by shared credit risk characteristics and by days past due. The expected loss rates are heavily influenced by the past rate of actual credit losses. Trade receivables are written off when there is no reasonable expectation of recovery. The Group also considers expected credit losses in relation to prepaid capital purchases such as vessel building deposits as there is a risk of non-delivery. The Group has a limited history of credit losses.
2021 | 2020 | |
€m | €m | |
Movement in the allowance for expected credit losses | ||
Balance at beginning of the financial year | 1.7 | 1.5 |
Increase in allowance during the financial year | 0.1 | 0.2 |
Balance at end of the financial year | 1.8 | 1.7 |
In relation to the amounts paid as deposits on capital works, significant progress on these works had been completed by the financial statement approval date. No allowance has been made for expected credit losses on refundable deposits.