VINCI - 2005 annual report

3. THE GROUP’S MARKETS:
SEASONAL NATURE OF BUSINESS
As far as its works activities are concerned, and particularly in road-building
and civil engineering, VINCI is subject to the vagaries of the weather.
Furthermore, the level of traffi c recorded by certain concessions, in
particular light vehicles on Cofi route’s intercity network, is generally higher
during summer months than in the winter.
As a result, business activity is usually higher in the second half of the year.
4. PROPERTY, PLANT AND EQUIPMENT
The Group’s property, plant and equipment mainly comprises site equipment,
technical installations and fi ttings, and buildings.
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VINCI 2005 ANNUAL REPORT
In 2005, the difference between the two six-month periods was approximately
14%,(15% in 2004).
This situation is refl ected by lower absorption of fi xed costs in the fi rst
half – and thus generally lower operating margins than in the full year – as
well as strains on operating cash fl ow because of lower cash receipts from
customers.
No single items are of a material size in relation to the size of the Group.
The sections entitled “Stock market and shareholders” (pages 14 to17), “A responsible company” (pages 106 to 147), “Corporate governance” (pages 152
to 168), “Report of the Chairman on the work of the Board of Directors and on internal control procedures” (pages 169 to 175), “Information on
VINCI’s share capital” (pages 299 to 303) and Notes A.3, B and 22.2 to the consolidated fi nancial statements form an integral part of the Report of the
Board of Directors.