As at the reporting date of the annual report 2010 (March 25th 2011), Strukton had access to 110 million euros in committed credit facilities. The company’s funding needs are forecast on a regular basis and the use of this credit facility is also monitored frequently. The funding documentation includes various covenants, primarily dealing with the company’s ability to generate cash. These two are assessed with great regularity as well.
The funding requirements take account of Strukton’s capital expenditure obligations and payment obligations under the ongoing capital expenditure programmes, projects and PPP interests.
Because the company’s operations tend to be project based, one-off negative project results can affect both funding requirements and the covenants. That risk is contained by a sharp focus on process control and by increasing the share of non-project related activities. Strukton also seeks to make further reductions in the company’s net liabilities in the short term and therefore to repay the loans.
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