3 CONSTRUCTION CONTRACT REVENUE
Revenue related to construction contracts amounted to £23,349,000 (2006: £nil) and is included within trading and development segment revenue (refer note 2) and represented 39 per cent (2006: 0 per cent) of Group revenues.
The amount shown in the balance sheet corresponds to the aggregate amount of costs incurred plus recognised profits, less recognised losses, less progress billings.
| 2007 £’000 |
2006 £’000 |
|
| Construction contracts: assets | 4,030 | – |
| Construction contracts: liabilities | (26,027) | – |
| Construction contracts: net liabilities | (21,997) | – |
| This amount corresponds to: | ||
| Aggregate costs incurred | 20,070 | – |
| Recognised profits | 3,279 | – |
| 23,349 | – | |
| Progress billings | (45,346) | – |
| Construction contract liabilities | (21,997) | – |
The Group has undertaken construction contract activity in 2007, utilising its own cash balances or borrowings to fund construction, or has received funds in advance from third parties.
