Notes to the Consolidated Financial Statements (continued)

9. Other current assets

Preacquisition costs relate to the professional fees and directly attributable costs for pre-development costs incurred on South Hill.

As at 31 December 2022, the directors concluded that there were no indicators of impairment as the acquisition of the land remained probable.

10. Trade and other receivables

Set out below is the movement in the allowance for expected credit losses of trade receivables:

11. Derivative Financial Asset

The Group has the following derivative financial asset:

At 31 December 2022, the Group had an interest rate swap agreement in place with a notional amount of £22m (2021: £Nil) whereby the Group receives a fixed rate of interest of 1.21% and pays interest at a variable rate equal to Compounded SONIA on the notional amount. The swap is being used to hedge the exposure to changes in the fair value of its floating rate secured loan.

Derivative Financial Asset is assessed to be level 2 in the fair value hierarchy on the basis of the counterparty’s observable report. There have been no transfers between levels during the year.