21. Deferred Income

Deferred income arises from certain services sold by the Group's subsidiary Animalcare Ltd. In return for a single up-front payment, Animalcare Ltd commits to a fixed term contract to provide certain database, pet reunification and other support services to customers. There is no contractual restriction on the amount of times the customer makes use of the service. At the commencement of the contract it is not possible to determine how many times the customer will make use of the services, nor does historical evidence provide indications of any future pattern of use. As such, income is recognised evenly over the term of the contract, currently eight years.

Movements in the Group's deferred income liabilities during the current and prior reporting period are as follows:

2014
£'000
2013
£'000
Balance at the beginning of the period1,0211,051
Income deferred to future periods182177
Release of income deferred from previous periods(231)(207)
Balance at end of the period9721,021

The deferred income liabilities fall due as follows:

2014
£'000
2013
£'000
Within one year242231
After one year730790
9721,021

Income recognised during the year is set out below:

2014
£'000
2013
£'000
Income received195190
Income deferred to future periods(182)(177)
Release of income deferred from previous periods231207
Income recognised in the year244220