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.

Copyright © 2008 Development Securities plc

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