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
|
31 December 2023 |
31 December 2022 |
|
|
Bank guarantees relating to: |
||
|
Execution of projects |
136,351 |
112,803 |
|
Tenders |
425 |
138 |
|
Other |
10,235 |
5,458 |
|
147,011 |
118,399 |
|
|
Group guarantees relating to: |
||
|
Execution of projects |
326,015 |
254,922 |
|
Credit and bank guarantee facilities |
12,072 |
9,851 |
|
338,087 |
264,773 |
|
|
Total |
485,098 |
383,172 |
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 € 12 million (2022: € 10 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 € 32 million (2022: € 38 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 amounted to a total of € 191 million at year-end 2023 (2022: € 19 million), while those with a limited cash impact amounted to € 22 million (2022: € 32 million), for a total of € 213 million (2022: € 51 million). These were primarily related to commitments to acquire land at the moment that a zoning plan has been finalised or when a building permit is obtained and/or a certain sales percentage is achieved and consist primarily of the following items:
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€ 160 million (2022: nil) entered into by Van Wanrooij, which was acquired in 2023 (see note 6.2 Business combinations). Of this, € 4 million (2022: nil) is included in joint business combinations.
-
€ 54 million (2022: € 51 million) entered into by the rest of the Group (excluding Van Wanrooij). Of this, € 0.5 million (2022: € 3 million) is included in joint operating activities.
-
No Group guarantees were issued in respect of this in 2023 (2022: none).
No Group guarantees were issued in respect of this in 2023 (2022: none).
6.28a Contingent liabilities joint ventures
At year-end 2023, the joint ventures in which the Group participates had contingent liabilities with a significant cash impact of € 18 million (2022: zero), while those with a limited cash impact amounted to € 16 million (2022: € 10 million), for a total of € 34 million (2022: € 10 million). These were primarily related 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.