General
Provisions are recognised in the statement of financial position when the Group has a present legal or constructive obligation that is the result of a past event and when it is probable that any settlement will result in an outflow of funds. The provisions are recognised at nominal value, unless the time value of money is material.
|
x € 1 million |
31 december 2023 |
New in consolidation |
Reversal of unused amounts |
Additions to provisions |
Provisions used |
31 december 2024 |
|
Work in progress losses |
15.5 |
- |
-0.9 |
15.4 |
-10.7 |
19.3 |
|
Warranty obligations |
31.0 |
0.2 |
-0.4 |
7.3 |
-8.1 |
30.0 |
|
Restructuring costs |
1.3 |
- |
-0.2 |
1.6 |
-1.9 |
0.8 |
|
Environmental risks |
2.4 |
- |
- |
2.2 |
-0.2 |
4.4 |
|
Provision for loss-making interests |
0.6 |
- |
- |
0.2 |
- |
0.8 |
|
Other provisions |
14.0 |
- |
- |
10.6 |
-11.2 |
13.4 |
|
Total provisions |
64.8 |
0.2 |
-1.5 |
37.3 |
-32.1 |
68.7 |
Ageing of provisions
|
x € 1 million |
31 December 2024 |
31 December 2023 |
|
Non-current portion |
38.5 |
45.2 |
|
Current portion |
30.2 |
19.6 |
|
Total |
68.7 |
64.8 |
Work in progress losses
If a contract with a client for the execution of a project becomes onerous, the entire amount of the loss is immediately recognised in the statement of profit or loss and included as a provision for losses on work in progress in the provisions in the statement of financial position. The projects to which these losses relate will be completed within two years.
Provision for warranty obligations
The provisions relate to complaints and deficiencies that become apparent after the delivery of projects and that fall within the warranty period. The magnitude of the costs provided for is dependent partly on the estimated allocation of the claim to the related construction partners. It is expected that most of the obligations will materialise in the next two years.
Provision for restructuring costs
The provision for restructuring costs relates to the expected severance costs related to organisational changes. Most of the provision will be used in 2025.
Provision for environmental risks
This item represents possible site reinstatement costs. The costs have been estimated by site, based on government regulations concerning the clean-up method and soil investigation. The periods within which restoration needs to take place vary by site. In the event that the restoration does not have to take place for another few years, there is an obligation to monitor the pollution. The expected monitoring costs have also been included in the provision.
Provision for loss-making interests
The provision for loss-making interests relates to joint ventures in which the Group’s equity share is negative and for which the Group has guaranteed all or part of the liabilities of that interest (or has the firm intention to enable the interest to pay (the Group’s share) of its liabilities).
Other provisions
The other provisions consist primarily of a provision for share appreciation rights (SARs) granted to employees that becomes unconditional five years after grant date and are settled in cash, plus a provision for the second year of employees’ sick leave.