Notes to the financial statements

19.Trade and other receivables

In 2008, under a debt purchase agreement with a financial institution, the Group has transferred credit risk and retained late payment risk on certain trade receivables, amounting to €37.0 million (2007: €27.6 million). The Group has continued to recognise an asset of €663,000 (2007: €515,000), representing the extent of its continuing involvement, and an associated liability of a similar amount.

The carrying value of receivables are a reasonable approximation of fair value. The net movement in the provision for impairment of receivables has been included in distribution expenses in the income statement.

There is no concentration of credit risk with respect to trade receivables as the Group has a large number of customers, internationally dispersed.

The Group's objective is to minimise credit risk by carrying out credit checks where appropriate by the use of credit insurance in certain situations and by active credit management. Management does not expect any significant losses of receivables that have not been provided for.

The carrying amounts of the Group's trade and other receivables are denominated in the following currencies:

Movements on the Group provision for impairment of trade receivables are as follows:

As of 3 January 2009, trade receivables of €8.2 million (2007: €9.1 million) were impaired. Trade receivable balances are considered to be impaired in full when falling due outside trade terms and are partially or wholly provided for. The amount of the provision was €8.1 million (2007: €7.8 million)

The breakdown of impaired trade receivables was as follows:

As of 3 January 2009, trade receivables of €29.6 million (2007: €23.8 million) were past due but not impaired, as they are considered recoverable.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. The Group does not hold any collateral as security.