The Directors consider that debtors that are neither past due nor impaired are of a high quality and were considered, at the balance sheet date, to be
fully recoverable at their gross book value. The Directors consider that the concentration of credit risk across the Group is limited due to the Group’s
customer base being significant. The largest balance outstanding from any single third party at 31 March 2015 was £2,054,000 (2014: £883,000),
representing 5% of the above Group net trade debtor total (2014: 2%). Individually significant debtors are principally due from customers with
investment grade credit ratings including utilities, government agencies and local authorities.
An ageing analysis of invoiced trade debtors that are past due but not impaired is provided below:
South Staffs Water
2015
2014
<1 year
£’000
1-2 years
£’000
2-3 years
£’000
3-4 years
£’000
4-5 years
£’000
>5 years
£’000
Total
£’000
8,803 2,030
1,171 679 393 —
13,076
8,159 1,991
1,210 788 445 154
12,747
Non-regulated service businesses
<1 month
1-2 months
>2 months
Total
£’000
£’000
£’000
£’000
2015 4,859 1,090 1,720
7,669
2014 2,674 1,061 2,274
6,009
Non-regulated service business’ debtors that are considered to be impaired of £1,480,000 (2014: £1,328,000) were all more than 2 months past due. An
ageing analysis of debtors of South Staffs Water that are considered to be impaired is provided below:
2015
2014
<1 year
£’000
1-2 years
£’000
2-3 years
£’000
3-4 years
£’000
4-5 years
£’000
>5 years
£’000
Total
£’000
3,985 3,406 3,259 3,064 2,895
11,062
27,671
3,635 3,230 2,935 2,766 2,623 8,261
23,450
The Directors consider that the carrying value of trade and other debtors including loans receivable, net of provisions, detailed in note 17 approximates
to their fair value.
29
Pension Retirement Benefits
The Group operates a number of funded pension schemes for the benefit of its employees. The Group participates in the Water Companies Pension
Scheme, by way of two separate sections, which provide benefits based on pensionable pay at certain points in time indexed as appropriate. The
Group also operates a number of defined contribution pension schemes. The assets of these schemes are held separately from those of the Group,
being invested by professional fund managers.
The Group accounts for pension schemes in accordance with Financial Reporting Standard 17, "Retirement Benefits" (FRS 17). Further details are
provided in note 1. In accordance with the recommendations of the actuary, the employers’ current service cost charged to the Group's profit and loss
account for the defined benefit scheme in the year ended 31 March 2015 was £1,723,000 (2014: £1,794,000). For the defined benefit scheme section
which was not closed to future accrual at 31 March 2015, the employer’s contribution rate in the year ended 31 March 2015 was 26.2% (2014: 26.2%)
plus a fixed contribution of £1,724,00 (2014: £1,672,000) with the employee contribution rates being 9.5% (2014: 9.5%). On 1 April 2015 this section
was also closed to future accrual (note 31), with contributions in the year ending 31 March 2016 limited to a fixed deficit contribution of £1,764,000.
Total deficit contributions in respect of both sections of this scheme for the year ending 31 March 2016 are £2,194,000 (2015: £2,144,000). The amount
charged to the profit and loss account for the defined contribution schemes in the year was £1,508,000 (2014: £1,199,000). There were no overdue
contributions at either year-end.
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