Annual Report and Accounts | 2024
Annual Report and Accounts | 2024
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
Trade receivables The Group has procedures in place for monitoring and managing the credit risk related to its trade receivables based on experience, customers’ track record and historic default rates. Individual risk limits are generally set by customer and risk is only accepted above such limits in defined circumstances. Credit risk exposures in relation to ad hoc customers are mitigated, where necessary, using prepayments or the request of deposits.
25. FINANCIAL RISK MANAGEMENT
Financial risk factors The Company’s Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management policy. The Board of Directors has established an Audit and Risk Committee which is responsible for developing and monitoring the Group’s risk management systems. The Group has an established group wide risk management system that ensures risks are consistently identified, assessed, recorded and reported across all Business Units and functions and which seeks to limit the impact of these risks on the financial performance of the Group. It is the Group’s policy to manage these risks in a non-speculative manner. The Group’s operations expose it to various financial risks, as described below. This note presents information about the Group’s exposure to these risks and its objectives, policies and processes for measuring and managing the risk. Further quantitative disclosures are included throughout this note. (a) Credit risk The Group undertakes financial transactions in the ordinary course of business with a number of counterparties and could suffer financial loss if any of those counterparties were to either fail or to default in the performance of their respective obligations. Credit risk arises from credit to customers arising on outstanding receivables and outstanding transactions as well as cash and cash equivalents, investment in government bonds, money market funds and deposits with banks and financial institutions. The Group’s deposits are held with one credit institution. The Group has invested in a number of German and Irish government bonds and in a money market fund. Counterparty exposures are regularly monitored by management and reported to the Board as required. The carrying amount of financial assets, net of impairment provisions represents the Group’s maximum credit risk exposure. The maximum exposure to credit risk at year end is outlined in the table below.
The Group’s trade receivables are all denominated in Euro. The exposure to credit risk for trade and receivables by geographic region of customers was as follows:
2024 €’000
2023 €’000
Gross trade receivables Republic of Ireland
2,158
2,758
396 442
United Kingdom
396 468
Rest of world
2,996
3,622
At 31 December
At 31 December 2024, the exposure to credit risk for trade receivables by type of counterparty was as follows:
2024 €’000
2023 €’000
1,780
1,509
Aeronautical customers
589 446 181
499
Commercial property customers
1,234
Airport concession and rental customers
380
Other commercial customers
2,996
3,622
At 31 December
Trade receivables do not carry interest and are stated net of allowances for doubtful receivables, an analysis of which is provided as follows:
2024 €’000
2023 €’000
Carrying amount 2024 €’000
2023 €’000
Expected credit loss At the start of the year
946
1,298 (314)
Group Trade receivables (Note 16)
(280)
Amounts credited to operating expenses
2,345 3,110
2,676 2,769
(15) 651
(38) 946
Trade receivables written off
Other receivables and contract assets (Note 16)
At 31 December
251
Finance lease receivable (Note 13) Other financial assets (Note 18) Cash and cash equivalents (Note 18)
265
59,117 14,424 79,247
-
2,345
Net trade receivables (Note 16)
2,676
77,415 83,125
Total
Company Trade receivables (Note 16) Other receivables (Note 16)
-
42
307 383 275 965
191 297 366 896
Amounts due from subsidiary companies (Note 16)
Cash and cash equivalents (Note 18)
Total
106
107
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