Annual Reports & Accounts 2011

23 Trade and other receivables

	2011 USD’000		2010 USD’000
Trade receivables	121,722		54,666
Other receivables and prepayments	18,577		13,936
Advances to suppliers	6,641		1,563
Receivables from a related party (Note 25)	484		–
	147,424		70,165
Less: Provision for impairment of trade receivables	(3,109	)	(2,997	)
	144,315		67,168
Amounts due from customers on contracts	386,171		58,013
Contract work in progress (Note 2.2)	138,267		125,943
	668,753		251,124

Amounts due from customers on contracts comprise:

	2011 USD’000		2010 USD’000
Costs incurred to date	1,088,265		241,300
Attributable profits	115,552		47,640
	1,203,817		288,940
Less: Progress billings	(817,646	)	(230,927	)
	386,171		58,013

An analysis of trade receivables is as follows:

	2011 USD’000	2010 USD’000
Fully performing	44,984	26,573
Past due but not impaired	73,629	25,096
Impaired	3,109	2,997
	121,722	54,666

Trade receivables that are less than three months past due are generally not considered impaired. As of 31 December 2011, trade receivables of USD 73.6m (2010: USD 25.1m) were past due but not impaired. These relate to a number of independent customers for whom there is no recent history of default. The ageing analysis of these trade receivables is as follows:

	2011 USD’000	2010 USD’000
Up to 3 months	52,319	19,713
3 to 6 months	9,154	2,375
Over 6 months	12,156	3,008
	73,629	25,096

At 31 December 2011, trade receivables of USD 3.1m (2010: USD 3m) were impaired and provided for. The individually impaired receivables are over six months (2010: over six months) old and mainly relate to customers who are in a difficult economic situation.

The carrying amounts of the Group’s trade and other receivables are primarily denominated in US Dollars or UAE Dirhams, which is pegged to the US Dollar.

Movements on the provision for impairment of trade receivables are as follows:

	2011 USD’000		2010 USD’000
At 1 January	2,997		2,795
Provision for receivables impairment (Note 15)	484		202
Receivables written off during the year as uncollectible	(56	)	–
Amounts recovered	(316	)	–
At 31 December	3,109		2,997

The creation and release of the provision for impaired receivables have been included in general and administrative expenses in the consolidated income statement (Note 10). Amounts charged to the allowance account are generally written off when there is no expectation of recovering additional cash.

The other classes within trade and other receivables do not contain impaired assets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables mentioned above.

The carrying value of trade receivables approximates to their fair value.