2007 Annual Report - Sappi

17. Trade and other receivables continued
17.5 Off balance sheet structures continued
Trade Receivables Securitisation continued
Details of the securitisation facility at September are set out below:
Bank Currency Value Facility Discount charges
2007
Rand Merchant Bank ZAR ZAR993 million Unlimited* Linked to 3 month JIBAR
2006
Rand Merchant Bank ZAR ZAR828 million Unlimited* Linked to 3 month JIBAR
* The facility in respect of the securitisation facility is unlimited, but subject to the sale of qualifying receivables to the SPE.
The expense with regard to the securitisation programme and the letter of credit discounts have been recognised in selling,
general and administrative expenses (refer note 4).
Details of the on-balance sheet securitisation facilities are described in note 21.
A significant portion of the group’s sales and accounts receivable are from major groups of customers. Two ( 2006: one) of
the group’s major customers, represent more than 10% of our sales during the year ended September 2007. These sales
were recorded in Sappi Fine Paper. The sales for the year ended September 2007 amounted to US$1,143 million (one
customer 2006: US$651 million). The trade receivables balance, net of securitisation, outstanding on balance sheet at
September 2007 was US$49 million (September 2006: one customer US$58 million). Where appropriate, credit insurance
has been taken out over the group’s trade receivables.
None of the group’s other receivable financial instruments represent a high concentration of credit risk because the group
has dealings with a variety of major banks and customers world-wide.
The group has the following amounts due from single customers:
2007 2006
No of
No of
customers US$m Percentage customers US$m Percentage
Greater than
US$10 million 7 106 19% 7 104 21%
Greater than
US$5 million 11 70 13% 8 47 9%
Less than US$5 million 1,788 377 68% 2,036 346 70%
1,806 553 100% 2,051 497 100%
All of the trade receivables, with balances of greater than US$5 million as at year end have not breached their contractual
maturity terms. No impairment charges have been recognised in respect of customers who owe the group more than
US$5 million.
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