Notes to the Financial Statements continued for the year ended 30 September 2025
21 Contract assets The following table provides information about receivables and contract assets from contracts with customers.
Group 2025 £m
Group 2024 £m 17.3 20.1
Note
14.1 19.4
Receivables, which are included in trade and other receivables
14
Contract assets – accrued income Contract costs – costs to fulfil Contract costs – costs to obtain
3.5 3.5
14 14
—
1.2
The Group has recognised £19.4m of contract assets (2024: £20.1m). All contract assets for the current year and the comparative period are presented within current assets. The ageing of contract assets at the end of the reporting year was:
Expected credit losses 2025 £m
Expected credit losses 2024 £m
Gross 2025 £m
Net 2025 £m
Gross 2024 £m
Net 2024 £m
Group
Contract assets: Not past due
20.1
(0.7)
19.4
21.1
(1.0)
20.1
Total
20.1
(0.7)
19.4
21.1
(1.0)
20.1
The movement in the expected credit losses of contract assets (being the credit losses recognised on financial assets, specifically contract assets) is as follows:
Expected credit loss provision £m
Balance at 1 June 2023
(0.2) (0.8)
Charged to the Income Statement
Balance at 30 September 2024 Provision utilised during the year
(1.0)
0.3
Balance at 30 September 2025
(0.7)
Accrued income of £19.4m (2024: £20.1m) is the Group’s rights to consideration for work completed but not billed at the reporting date. The contract assets accrued in the prior year of £20.1m were fully recognised as trade receivables during the year ended 30 September 2025. Therefore, the balances as at 30 September 2025 were fully accrued during the year and will be transferred to receivables when the rights become unconditional. Expected credit losses of £0.7m (2024: £1.0m) have been recognised in respect of contract assets. The contract assets are transferred to receivables when the rights become unconditional. This usually occurs when the Group issues an invoice to the customer. Invoices usually become payable within 30 days. The contract costs to obtain of £3.5m (2024: £1.2m) represent incremental sales commissions to obtain specific contracts and are amortised over the length of the contract. Contract costs comprise (i) incremental costs of obtaining contracts of £3.5m (2024: £1.2m), which are expected to be recovered through future revenue, and (ii) costs to fulfil contracts of £3.5m (2024: £nil), which relate directly to future performance obligations and are expected to be recovered.
NCC Group plc — Annual report and accounts for the year ended 30 September 2025 142
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