RE: Half Year Report8 Mar 2023 08:38
Sound results for me continue to hold interesting will be out come of this.
As previously disclosed, the Group provided services in respect of three contracts with entities owned by a major infrastructure fund of a blue-chip listed company. Our work on these contracts formally ceased following their termination in August 2018. Costs were significantly impacted by client-driven scope changes and the Group has submitted claims and variations to the value of circa £95m in respect of these costs (June 2022: £95m). The Group has taken extensive legal advice on our entitlement, and we have been successful in two adjudications supporting the validity of the Group's position. The claim is progressing in line with the expected timetable, with all associated legal and professional costs expensed or incurred. Taking into account the requirements of IFRS 15, the Group had constrained the revenue recognised in prior periods to the extent that it was highly probable not to result in a significant reversal in the future. At 31 December 2022, the Group has reviewed its assessed recoverability in accordance with IFRS 15. Given the progress, in line with expectations during the period, this is unchanged. The Group has also reviewed its expected credit loss provision in accordance with IFRS 9 for which there was no material change in the required provision since the prior year end.Good luck all.