Boskalis Annual Report 2018

118 ANNUAL REPORT 2018 – BOSKALIS FINANCIAL STATEMENTS 2018 A UAL REP RT 2018 -- BOSKALIS FINANCIAL STATEMENTS 2018 118 The movement in the loss allowances in respect of trade receivables during the year was as follows: 2018 2017 Balance as at 1 January based on incurred losses 14,320 20,729 Change in accounting principles (see note 3.33) 153 Balance as at 1 January based on expected losses method 14,473 Acquired through business combinations - 42 Provisions made during the year 3,515 3,898 Provisions used during the year - 3,372 - 4,396 Provisions reversed during the year - 2,689 - 5,109 Currency exchange rate differences 690 - 844 - 1,856 - 6,409 Balance as at 31 December 12,617 14,320 At 1 January 2018 the Group reassessed its loss allowances for trade receivables based on the expected loss method according to IFRS 9. In 2017 loss allowances were calculated based on the incurred loss method in IAS 39. Concentration of credit risk of customers As at the reporting date there was no concentration of credit risk with any customers. Credit risk cash and cash equivalents The Group had cash and cash equivalents of EUR 336 million as at 31 December 2018 (2017: EUR 192 million), representing its maximum credit risk exposure on these assets. The cash and cash equivalents are held with bank and financial institution counterparties with investment grade credit ratings. 28.1.2 LIQUIDITY RISK Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is aimed at ensuring that it will have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions. Liquidity projections including available credit facilities are incorporated in the regular management information reviewed by the Board of Management. The focus of the liquidity review is on the net financing capacity, being free cash (see note 22) plus available credit facilities in relation to financial liabilities (see note 24). The total of free cash and available credit facilities at year-end amounted to EUR 0.6 billion. Furthermore, based on the Group’s financial ratios it can be concluded that the Group has significant debt capacity available under an (implied) investment grade credit profile. The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements: As at 31 December 2018 Book value Contractual cash flows One year or less 1 - 5 years More than 5 years US private placements 283,572 331,124 10,405 320,719 - Revolving multi-currency credit facility 150,000 151,125 750 150,375 - Other interest-bearing borrowings 5,179 6,979 642 6,337 - Bank overdrafts 28,330 28,986 28,986 - - Trade and other payables 1,039,014 1,039,014 1,039,014 - - Income tax payable 150,719 150,719 150,719 - - Derivatives 13,136 13,136 11,435 1,701 - 1,669,950 1,721,083 1,241,951 479,132 -