REG - Compass Group PLC - Final Results <Origin Href="QuoteRef">CPG.L</Origin> - Part 6

CompassAnnouncement

26/11/2014 07:11

- Part 6: For the preceding part double click  ID:nRSZ9967Xe 

                                                                                                                                                                                                                                                                             ownership             ownership  
                                                                                                                                                                                                                                                                                                                                                                 
 Quadrant Catering Ltd (1)                                                                                                                                                                                                                                                                                        England & Wales       49%        49%    
 ADNH-Compass Middle East LLC                                                                                                                                                                                                                                                                                     United Arab Emirates  50%        50%    
 Express Support Services Limitada                                                                                                                                                                                                                                                                                Angola                50%        50%    
                                                                                                                                                                                                                                                                                                                                                                 
 (1) 49% ownership in Quadrant Catering Ltd entitles Compass Group to 50% of voting rights.                                                                                                                                                                                                                                                        
                                                                                                                                                                                                                                                                                                                                                                 
 None of these investments is held directly by the Ultimate Parent Company. All joint ventures provide food and/or support services in their respective countries of incorporation and make their accounts up to 30 September.  All holdings are in the ordinary shares of the respective joint venture company.  
                                                                                                                                                                                                                                                                                                                                                                 
 The share of the revenue, profits, assets and liabilities of the joint ventures included in the consolidated financial statements is as follows:                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                   2014   2013   
 Joint ventures                                                                                                                                                                                                                                                                                                                                    £m     £m     
 Share of revenue and profits                                                                                                                                                                                                                                                                                                                                    
 Revenue                                                                                                                                                                                                                                                                                                                                           217    196    
 Expenses                                                                                                                                                                                                                                                                                                                                          (195)  (175)  
 Profit after tax for the year                                                                                                                                                                                                                                                                                                                     22     21     
 Share of net assets                                                                                                                                                                                                                                                                                                                                             
 Non-current assets                                                                                                                                                                                                                                                                                                                                7      6      
 Current assets                                                                                                                                                                                                                                                                                                                                    84     78     
 Non-current liabilities                                                                                                                                                                                                                                                                                                                           (7)    (6)    
 Current liabilities                                                                                                                                                                                                                                                                                                                               (47)   (44)   
 Net assets                                                                                                                                                                                                                                                                                                                                        37     34     
 Share of contingent liabilities                                                                                                                                                                                                                                                                                                                                 
 Contingent liabilities                                                                                                                                                                                                                                                                                                                            21     20     
                                                                                                                                                                                                                                                                                                                                                                 
 The share of capital commitments, contracted but not provided for, at 30 September 2014 was £nil (2013: £nil).                                                                                                                                                                                                   
 
 
 16 Trade and other receivables                                                                                                   
                                                                                                                                  
                                                                        2014     2013         
 Trade and other receivables                                            Current  Non-current  Total  Current  Non-current  Total  
 £m                                                                     £m       £m           £m     £m       £m           
                                                                                                                                  
 Net book value                                                                                                                   
 At 1 October                                                           2,072    83           2,155  2,114    90           2,204  
 Net movement                                                           153      (12)         141    9        (2)          7      
 Currency adjustment                                                    (97)     (4)          (101)  (51)     (5)          (56)   
 At 30 September                                                        2,128    67           2,195  2,072    83           2,155  
                                                                                                                                  
 Comprised of                                                                                                                     
 Trade receivables                                                      1,821    -            1,821  1,862    4            1,866  
 Less: Provision for impairment of trade receivables                    (75)     -            (75)   (101)    -            (101)  
 Net trade receivables (1)                                              1,746    -            1,746  1,761    4            1,765  
                                                                                                                                  
 Other receivables                                                      82       75           157    58       69           127    
 Less: Provision for impairment of other receivables                    (11)     (16)         (27)   (11)     -            (11)   
 Net other receivables                                                  71       59           130    47       69           116    
                                                                                                                                  
 Accrued income                                                         189      -            189    166      -            166    
 Prepayments                                                            122      8            130    98       10           108    
                                                                                                                                  
 Trade and other receivables                                            2,128    67           2,195  2,072    83           2,155  
                                                                                                                                  
 (1) Categorised as 'loans and receivables' financial assets (IAS 39).  
                                                                                                                                  
 
 
 Trade receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 The book value of trade and other receivables approximates to their fair value due to the short-term nature of the majority of the receivables.                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
 Credit sales are only made after credit approval procedures have been completed satisfactorily. The policy for making provisions for bad and doubtful debts varies from country to country as different countries and markets have different payment practices, but various factors are considered, including how overdue the debt is, the type of receivable and its past history, and current market and trading conditions. Full provision is made for debts that are not considered to be recoverable.    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 There is limited concentration of credit risk with respect to trade receivables due to the diverse and unrelated nature of the Group's client base. Accordingly, the Directors believe that there is no further credit provision required in excess of the provision for the impairment of receivables. The book value of trade and other receivables represents the Group's maximum exposure to credit risk.                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
 Trade receivable days for the continuing business at 30 September 2014 were 45 days (2013: 44 days).                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
 
 
 16 Trade and other receivables (continued)                                                                                                                                                                                                                                                                                           
 The ageing of gross trade receivables and of the provision for impairment is as follows: