Notes to the Financial Statements continued for the year ended 31 May 2022
23 Contract balances The following table provides information about receivables, contract assets and contract liabilities from contracts with customers.
Group 2022 £m 40.6 23.0
Group 2021 £m 35.2 22.9
Notes
Receivables, which are included in trade and other receivables
17 17 17 22
Contract assets – accrued income Contract costs – costs to obtain Contract liabilities – deferred income
1.1
0.4
(62.3)
(44.3)
Receivables represent invoiced services usually payable within 30 days whereby performance obligations have been satisfied. Accrued income of £23m (of which £20.3m (2021: £21.3m) represents Assurance accrued income) is the Group’s rights to consideration for work completed but not billed at the reporting date. Remaining balances are transferred to receivables when the rights become unconditional. Credit losses of £nil (2021: £0.1m) have been recognised in respect of contract assets. The contract assets were not impacted by any impairment charge. 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 £1.1m (2021: £0.4m) represent incremental sales commissions to obtain specific contracts. The contract costs to fulfil represent recoverable costs relating to future performance obligations and economic benefits to the customer in relation to a long-term onerous contract. Contract liabilities primarily relate to advanced consideration received from customers, for which revenue is recognised over time in line with the respective performance obligation. No information is provided about remaining performance obligations at 31 May 2022 or at 31 May 2021 that have an original expected duration of one year or less, as allowed by IFRS 15.
24 Cash and cash equivalents and borrowings Cash and cash equivalents Cash and cash equivalents comprise:
Group 2022 £m
Company 2022 £m
Group 2021 £m
Company 2021 £m
Cash at bank and in hand
73.2
20.2
116.5
0.6
Borrowings are analysed as follows:
Group 2022 £m
Company 2022 £m
Group 2021 £m
Company 2021 £m
Maturity
Current liabilities: Bank term loan
18.5
–
2024
–
–
Non-current liabilities: Revolving credit facility
70.5 36.6
– –
33.2
– –
Bank term loan
2024
–
Total borrowings
125.6
–
33.2
–
The maturity profile is as follows:
Group 2022 £m
Company 2022 £m
Group 2021 £m
Company 2021 £m
18.5
– –
Less than one year Two to five years
–
– –
107.1
33.2
Total borrowings
125.6
–
33.2
–
186
NCC Group plc — Annual report and accounts for the year ended 31 May 2022
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