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104
Hamon Annual Report 2012
The finance costs of the Group are presented as follows (for more detail, see note 12) :
in EUR ‘000’ 31/12/12 31/12/11 31/12/10
Interest on loans and bank overdrafts (4 983 ) (4 776 ) (3 720 )
Interest on finance leases (127) (138) (189)
TOTAL interest expenses (5 110 ) (4 914 ) (3 909 )
Costs related to anticipated reimbursement - (194) -
Credit facilities transaction costs (amortized cost treatment under IFRS) (952) (1 131 ) (1 192 )
Other financing costs (1 276 ) (796) (460)
TOTAL other finance costs (2 228 ) (2 121 ) (1 652 )
TOTAL (7 338 ) (7 035 ) (5 561 )
Financial assets as well as trade payables of the Group
do not generate important financial income or expense
due to the historically low interest rates.
e) Management of credit risk
Due to its construction activities, the Group is exposed
to credit risks. However, credit risk is lesser than the one
of more traditional constructions companies, as the credit
rating of most of the Group customers is very high since they
are mainly large international Engineering & Contracting
(EPC) groups or energy producers.
The customer risk occurs in the accounts as the nonpayment
by a customer which could lead to a write-off
of the underlying receivable. When a receivable becomes
doubtful, following suspension of payment or bankruptcy
of a customer, the Group books a provision for doubtful
receivable. If, thereafter, the receivable becomes uncollectible,
a corresponding write-off is accounted for .
The Group does not have significant concentration of
credit risk since this risk is distributed over a large number
of customers and counterparts around the world. The most
important customer is a financially very strong Saudi
customer which accounts for 5% of the total trade
receivables. When finalizing important contracts, the finance
department carries out a credit analysis of the customer
based on credit reports obtained from external companies.
According to the financial risk profile of the customer,
the Group will decide whether or not to cover its credit
risk. Moreover, the Group takes particular measures
for customers located in countries where the risk is
significant. As credit risk solutions, the Group can, among
others, request the payment prior to delivery, irrevocable
and confirmed (by our banks) letters of credits as well
as credit insurance policies covering the residual risks
(political, embargo...) and the risks of unfair calls on
the bank guarantees.
The following table presents an analysis of the financial
receivables of the Group. They include the trade receivables
and other receivables of the Group, with the exception of
the non-financial receivables like tax assets. The amounts
presented in the following table are the gross values of the
receivables before any write-off for doubtful receivables.
Monitoring of financial receivables
in EUR ‘000’ TOTAL Due over Due Due Current Not due
> 3 months 2-3 months 1-2 months
As of 31 December 2012 129 532 12 587 4 063 6 435 43 124 63 324
As of 31 December 2011 86 942 10 587 1 487 4 390 43 728 26 750
As of 31 December 2010 97 632 8 940 3 083 8 972 44 171 32 465