6.28 Contingent liabilities

General

Contingent liabilities are potential liabilities resulting from events prior to the reporting date. The liabilities are potential because the outflow of economic resources depends on the occurrence of uncertain events in the future.

Contingent liabilities can be divided into bank guarantees, Group guarantees and other contingent liabilities.

Bank and Group guarantees

x € 1,000

The Group guarantees associated with financing facilities have been provided in connection with project financing, bank guarantees and credit facilities applying to subsidiaries, joint operations and joint ventures. Heijmans has guaranteed its share of the debt of various joint operations and property joint ventures, which amounts to €10 million (2021: €19 million). The Group does not expect to incur material credit losses on this.

The Group guarantees issued for divested operations (Leadbitter) are not included in the above table. They amount to €38 million (2021: €41 million). With regard to work completed and work in progress, the guarantees will be taken over by the buyer if possible. Where this is not possible, the buyer has provided a bank or corporate guarantee.

Other contingent liabilities

The other contingent liabilities with a significant cash impact as at year-end 2022 amount to €19 million (2021: €16 million) and those with a limited cash impact €32 million (2021: €60 million), making a total of €51 million (2021: €76 million). Of the total amount, €3 million (2021: €1 million) is recognised under joint operations. This relates mainly to commitments to acquire land when the building permit is obtained and/or a certain sales percentage is achieved. No Group guarantees were issued in respect of this in 2022 (2021: none).

6.28a Contingent liabilities joint ventures

At year-end 2022, the joint ventures in which Heijmans participates had no contingent liabilities with significant cash impact (2021: none) but had contingent liabilities with a limited cash impact amounting to €10 million (2021: €11 million), making a total of €10 million (2021: €11 million). This relates mainly to commitments to acquire land when the building permit is obtained and/or a certain sales percentage is achieved. The aforementioned amounts relate to Heijmans’ share in the joint ventures.