Page 85 - Beeks Financial Cloud Group Annual Report 2021

Beeks Financial Cloud Group PLC
Notes to the Consolidated Financial Statements For the year ended 30 June 2021

2021 2020
The credit risk relating to trade receivables is analysed as follows: £000 £000

Trade receivables 1,032 791
Less: allowance for impairment of receivables (19) (20)
1,013 771
Movements in the allowance for expected credit losses are as follows:

Opening balance 20 63
Additional allowance recognised 46 20
Receivables written off during the year as uncollectable (47) (65)
Unused amounts reversed - 2
Closing balance 19 20

The Directors consider that the carrying amount of trade and other receivables is approximately equal to their
fair value. The group has applied the simplified approach to providing for expected credit losses prescribed by
IFRS 9, which permits the use of lifetime expected loss allowance for all trade receivables. The expected credit loss
allowance under IFRS 9 as at 30 June 2021 is £8k (2021 - £13k).

Trade receivables consist of a large number of customers across various geographical areas. The aging below
shows that almost all are less than three months old and historic performance indicates a high probability of
payment for debts in this aging. Those over three months relate to customers without history of default for which
there is a reasonable expectation of recovery.

Past due but not impaired
The Group did not consider a credit risk on the aggregate balances after reviewing the credit terms of the customers
based on recent collection practices. FINANCE

The aging of trade receivables at the reporting date is as follows: 2021 2020
£000 £000

Not yet due 706 505
Past due 1 to 3 months 307 275
Past due 3 to 6 months 19 0
More than 6 months past due 0 11
1,032 791

13. THE CREDIT RISK RELATING TO TRADE RECEIVABLES IS ANALYSED AS FOLLOWS:
Cash and bank balances 3,372 1,433

3,372 1,433

The credit risk on cash and cash equivalents is considered to be negligible because over 99% of the balance is
with counter parties that are UK and US banking institutions.

83