The consequences of the recession will again be keenly felt in the building industry in 2010. Companies will invest less and reduce surplus credit positions. Strukton expects clients, especially private clients, to be exceedingly cautious and engagements to be cancelled.
The order book, however, currently consists predominantly of engagements won from the public sector. We are keeping a very close eye on developments in the order book and the level of activity in relation to the size of the organisation so that appropriate measures can be taken in good time. Additional vigilance is required with regard to the solvency position where there are payment risks, for which additional security is regularly requested, and the transfer of risks in the supply chain to subcontractors and suppliers.
To reduce its exposure to cyclical fluctuations, Strukton seeks a situation in which long-term and repeat engagements form a substantial proportion of its revenue.