There have been no material changes to the Group's concentration of credit risk or the maturity analysis of its financial liabilities since the year end.

There is one customer in Latin America, with a gross value of US$75.7 million, which represents approximately 5% of the total balance of trade receivables (FY22: US$64.4 million (over 5%)).

Collections from customers during FY23 have remained in line with historic norms. Management has concluded that the likelihood of material expected credit losses is low.

The following table details the credit risk profile of trade receivables based on the Group's provision matrix.

Days past due

		Audited Year ended  February 2023
US$'000		North  America	Latin  America	Europe	Asia-  Pacific	MEA	Total
Datatec Group Total
Current		60 749	125 311	746 423	229 392	99 622	1 261 497
1-30 days past due		14 917	12 887	50 427	35 400	20 228	133 859
31-60 days past due		3 324	10 622	17 716	15 254	5 814	52 730
61-90 days past due		2 224	1 737	11 184	4 681	3 903	23 729
91-120 days past due		937	1 342	2 857	2 157	2 988	10 281
Over 120 days past due		3 322	9 066	15 436	5 571	20 721	54 116
Gross trade receivables		85 473	160 965	844 043	292 455	153 276	1 536 212
Expected credit loss allowance		–	(619)	(7 902)	(3 392)	(15 829)	(27 742)
Net trade receivables		85 473	160 346	836 141	289 063	137 447	1 508 470
Westcon International
Current		–	–	626 226	178 756	97 025	902 007
1 – 30 days past due		–	–	29 617	20 132	19 372	69 121
31 – 60 days past due		–	–	16 038	11 325	5 617	32 980
61 – 90 days past due		–	–	10 695	2 752	3 835	17 282
91 – 120 days past due		–	–	1 909	1 962	2 973	6 844
Over 120 days past due		–	–	15 333	1 792	20 673	37 798
Gross trade receivables		–	–	699 818	216 719	149 495	1 066 032
Expected credit loss allowance		–	–	(7 269)	(1 056)	(15 802)	(24 127)
Net trade receivables		–	–	692 549	215 663	133 693	1 041 905

		Audited Year ended 28 February 2023
US$'000		North  America	Latin  America	Europe	Asia-  Pacific	MEA	Total
Logicalis International
Current		60 749	–	120 197	50 636	2 597	234 179
1 – 30 days past due		14 917	–	20 810	15 268	856	51 851
31 – 60 days past due		3 324	–	1 678	3 929	197	9 128
61 – 90 days past due		2 224	–	489	1 929	68	4 710
91 – 120 days past due		937	–	948	195	15	2 095
Over 120 days past due		3 322	–	103	3 779	48	7 252
Gross trade receivables		85 473	–	144 225	75 736	3 781	309 215
Expected credit loss allowance		–	–	(633)	(2 336)	(27)	(2 996)
Net trade receivables		85 473	–	143 592	73 400	3 754	306 219
Logicalis Latin America
Current		–	125 311	–	–	–	125 311
1 – 30 days past due		–	12 887	–	–	–	12 887
31 – 60 days past due		–	10 622	–	–	–	10 622
61 – 90 days past due		–	1 737	–	–	–	1 737
91 – 120 days past due		–	1 342	–	–	–	1 342
Over 120 days past due		–	9 066	–	–	–	9 066
Gross trade receivables		–	160 965	–	–	–	160 965
Expected credit loss allowance		–	(619)	–	–	–	(619)
Net trade receivables		–	160 346	–	–	–	160 346
Corporate and Management Consulting
Current		–	–	–	–	–	–
1 – 30 days past due		–	–	–	–	–	–
31 – 60 days past due		–	–	–	–	–	–
61 – 90 days past due		–	–	–	–	–	–
91 – 120 days past due		–	–	–	–	–	–
Over 120 days past due		–	–	–	–	–	–
Gross trade receivables		–	–	–	–	–	–
Expected credit loss allowance		–	–	–	–	–	–
Net trade receivables		–	–	–	–	–	–

The past due receivables ageing categories above are shown gross, before taking into account expected credit loss allowances. US$27.1 million (FY22: US$ 26.2 million) expected credit losses have been allocated to the US$64.4 million (FY22: US$43.8 million) over 90 days past due receivables, resulting in a net over 90 days past due receivables balance of US$37.3 million (FY22: US$17.6 million). Where there are no expected credit loss allowances, the balances are deemed to be recoverable and there are either payment plans in place with the relevant customers or discussions with the customers are ongoing to resolve the payment of the outstanding balances.

		Audited Year ended  February 2022
US$'000		North  America	Latin  America	Europe	Asia-  Pacific	MEA	Total
Datatec Group Total
Current		72 233	115 848	599 579	173 409	108 068	1 069 137
1 – 30 days past due		14 594	9 737	42 915	18 664	10 053	95 963
31 – 60 days past due		7 104	8 779	9 795	5 601	1 181	32 460
61 – 90 days past due		1 608	1 379	4 639	416	1 212	9 254
91 – 120 days past due		1 699	867	1 379	1 464	(566)	4 843
Over 120 days past due		5 323	2 819	8 120	5 680	16 985	38 927
Gross trade receivables		102 561	139 429	666 427	205 234	136 933	1 250 584
Expected credit loss allowance		(185)	(629)	(7 428)	(3 281)	(15 237)	(26 760)
Net trade receivables		102 376	138 800	658 999	201 953	121 696	1 223 824
Westcon International
Current		–	–	492 045	136 335	103 469	731 849
1 – 30 days past due		–	–	29 049	11 485	8 751	49 285
31 – 60 days past due		–	–	6 891	3 373	854	11 118
61 – 90 days past due		–	–	2 484	(460)	461	2 485
91 – 120 days past due		–	–	1 322	698	(603)	1 417
Over 120 days past due		–	–	7 823	941	16 236	25 000
Gross trade receivables		–	–	539 614	152 372	129 168	821 154
Expected credit loss allowance		–	–	(6 836)	(883)	(14 883)	(22 602)
Net trade receivables		–	–	532 778	151 489	114 285	798 552
Logicalis International – Re-presented#
Current		70 716	–	96 996	36 142	2 556	206 410
1 – 30 days past due		14 336	–	13 143	7 043	764	35 286
31 – 60 days past due		7 064	–	2 463	2 021	173	11 721
61 – 90 days past due		1 608	–	1 112	798	12	3 530
91 – 120 days past due		1 699	–	45	763	30	2 537
Over 120 days past due		5 292	–	279	4 739	34	10 344
Gross trade receivables		100 715	–	114 038	51 506	3 569	269 828
Expected credit loss allowance		(154)	–	(592)	(2 398)	(41)	(3 185)
Net trade receivables		100 561	–	113 446	49 108	3 528	266 643

		Audited Year ended  February 2022
US$'000		North America	Latin America	Europe	Asia- Pacific	MEA	Total
Logicalis Latin America – Re-presented#
Current		–	115 807	–	–	–	115 807
1 – 30 days past due		–	9 687	–	–	–	9 687
31 – 60 days past due		–	8 779	–	–	–	8 779
61 – 90 days past due		–	1 298	–	–	–	1 298
91 – 120 days past due		–	867	–	–	–	867
Over 120 days past due		–	2 819	–	–	–	2 819
Gross trade receivables		–	139 257	–	–	–	139 257
Expected credit loss allowance		–	(629)	–	–	–	(629)
Net trade receivables		–	138 628	–	–	–	138 628
Corporate and Management Consulting
Current		1 517	41	10 538	932	2 043	15 071
1 – 30 days past due		258	50	723	136	538	1 705
31 – 60 days past due		40	–	441	207	154	842
61 – 90 days past due		–	81	1 043	78	739	1 941
91 – 120 days past due		–	–	12	3	7	22
Over 120 days past due		31	–	18	–	715	764
Gross trade receivables		1 846	172	12 775	1 356	4 196	20 345
Expected credit loss allowance		(31)	–	–	–	(313)	(344)
Net trade receivables		1 815	172	12 775	1 356	3 883	20 001

Negative amounts represent credits on accounts that have not yet been applied/cleared due to timing of customer approvals, as well as payments received in advance.

#

The Logicalis segment previously reported in the prior period is now being reported as two management segments, Logicalis Latin America and Logicalis International (representing the Logicalis business outside of Latin America). The ultimate Logicalis holding company, Logicalis Group Limited, and its associated costs, is now included in the “Corporate and Management Consulting” segment. Comparative results have been re-presented.

The Group is dependent on its bank overdrafts and trade finance facilities to operate. These facilities generally consist of either a fixed term or fixed period and may be repayable on demand and are secured against the assets of the company to which the facility is made available. These facilities contain certain covenants including financial covenants such as minimum liquidity, maximum leverage and pre-tax earnings coverage. In certain circumstances, if these covenants are violated and a waiver is not obtained for such violation, this may, amongst other things, mean that the facility may be repayable on demand.

Logicalis International is supported by a corporate facility of US$135.0 million, covering all its operations, comprising an acquisition facility and a rolling credit facility to fund working capital requirements. Logicalis Inc., a subsidiary operating in the United States, has a receivables purchase agreement. This agreement qualifies as a transfer of risks and rewards to the buyer and therefore permits the company to derecognise the relating accounts receivable. There is a finance cost to this company, which is based on the individual customer's credit score and credit term of the customer invoices selected for sale. There is an agreed list of customers, each with an individual credit limit which, when combined, totals US$200.0 million. As at 28 February 2023, US$10.5 million has been utilised.

Logicalis Latin America is supported separately via a number of uncommitted overdraft facilities and short-term lending arrangements and is predominantly sourced via Tier 1 banks in Brazil as it is the largest territory in the region.

Westcon International has an invoice assignment facility of EUR390.6 million for its European subsidiaries, as well as an extended payables facility of US$105.0 million. Westcon International has a securitisation facility of US$120.0 million for its Asia-Pacific facilities. In addition, Westcon International utilises accounts receivable facilities in the Middle East (US$15.0 million) and Indonesia (US$11.0 million) as well as overdraft facilities in Europe (EUR4.0 million) and Africa (US$1.0 million), and a securitisation facility in South Africa (ZAR250.0 million) to finance the business.

The Group continues to monitor the funding needs of its individual operations and works closely with various financial institutions to ensure adequate liquidity.

The Group has performed covenant projections for the next 12 months to confirm that banking covenants are expected to be met.