Financial Statements

Notes to the Group financial statements

for the year ended 31 March 2006

20. Trade and other receivables

	Current	Non-		Current	Non-
	2006	current		2005	current
		2006			2005
	£m	£m		£m	£m
Trade receivables:
Hire purchase receivables	–	–		138	32
Instalment receivables	355	33		419	232
Other trade receivables	368	4		394	36
Total trade receivables	723	37		951	300
VAT recoverable	10	–		14	1
Deferred consideration receivable	140	–		–	140
Amounts owed by associates	1	–		–	–
Other prepayments and accrued income	177	14		169	13
	1,051	51		1,134	454

The effective interest rate during the year ended 31 March 2006 for instalment receivables is 7.7%.

The deferred consideration in respect of the disposal of the home shopping and Reality businesses of £140m was received in full by GUS plc in April 2006 from March UK Ltd.

The Group has elected to apply the provisions of IAS 32 and IAS 39 with effect from 1 April 2005. The comparative financial information is prepared in accordance with UK GAAP to the extent that it relates to recognition and measurement of financial instruments. The nature of the main adjustments that would make the information comply with IAS 32 and IAS 39 are set out in note 39.

An analysis of the maturity profile for non-current items is contained in note 27.