Tiscali 2007 Annual Report Download - page 92

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to hedge receivable expired over 360 days earlier, first of all.
In general, interests for delayed payment are not applied,
unless they are provided for in the contract, in case of receiv-
able recoveries by recovery companies.
With the aim of appraising potential customers, of defining
receivable limits, of checking the risky level of customers, out-
sourced specialized companies are used.
As the Group’s credit exposure is spread over a very large
customer base, there is no particular credit concentration risk.
The following table illustrates the ageing at 31 December 2007
and 31 December 2006, respectively:
EUR (000) 31.12.2007 31.12.2006
non-expired 49,517 45,010
1- 180 days 108,231 83,690
181 - 360 days 20,129 12,260
over 360 days 66,910 29,817
Total 244,787 170,777
The following table illustrates the movements of the receivable
writedown fund during respective financial years.
The net movements happened in financial year 2007, amount-
ing to EUR 45.3 million, is influenced by the change in the
consolidation area due to Pipex’s acquisition for EUR 31.2 mil-
lion, from provisions for EUR 27.3 million and utilisation for
EUR 13.2 million.
EUR (000) 31.12.2007 31.12.2006
Write-down provision for losses at 31.12.06 (35,040) (41,868)
Consolidation area change (31,189) 9,761
Provision (27,332) (15,394)
Utilisation 13,226 12,461
Write-down provision for losses at 31.12.07 (80,335) (35,040)
26. Other Receivables and other Current Assets
EUR (000) 31.12.2007 31.12.2006
Other receivables 16,349 18,953
Accrued income 18,849 11,195
Prepaid expense 36,454 13,987
Total 71,652 44,135
Other receivables, amounting to EUR 16.3 million, include VAT
receivables for EUR 6.3 million.
Accrued income (EUR 18.8 million) mainly relates to revenues
accrued in 2007 from services in the access segment.
Prepaid expenses of EUR 36.4 million relate to costs associ-
ated with multi-year rental of lines, international circuit agree-
ments as well as hardware and software maintenance costs.
The book value of the captions included in this item is approx-
imate to their ‘fair value’.
27. Other current financial assets
EUR (000) 31.12.2007 31.12.2006
Guarantee deposits 7,511 7,638
Other receivables 647 224
Total 8,158 7,862
Other current financial assets include EUR 4.7 million in deposits
recorded in relation to Tiscali UK, and another EUR 2.5 million
recorded in relation to Tiscali S.p.A., which is expected to be
freed up shortly.
28. Cash and cash equivalents
Cash and cash equivalents at 31 December 2007 amounted
to EUR 134.2 million and include the Group’s cash, essential-
ly held in bank current accounts. Please see the section relat-
ing to information on operations for a detailed analysis of the
financial position.
29. Shareholders’ equity
EUR (000) 31.12.2007 31.12.2006
Share capital 212,207 212,207
Share premium reserve 902,492 948,017
Translation reserve (35,211) 4,685
Stock Options reserve 9,969 -
Equity bond reserve (22,053)
Retained earnings (941,863) (922,079)
Total 169,647 242,829
Changes in 2007 in shareholders’ equity items are detailed
in the relevant table.
At 31 December 2007, the share capital amounted to EUR
212.2 million corresponding to 424,413,163 ordinary shares
with a par value of EUR 0.50 each.
On 31 August 2007, a capital increase was approved for a
countervalue of EUR 150 million, equalling 149,792,880
shares. Such capital increase was carried out and complete-
ly subscribed in February 2008. Moreover, on 21 December
2007, a capital increase was approved up to the threshold
of 42,441,316 shares, with a view to the bond loan convert-
ible into Tiscali S.p.A. shares of EUR 60 million, issued by
the subsidiary under Luxembourg law, Tiscali Financial Ser-
vices SA.
The share premium reserve underwent a decrease of EUR
45.5 million, attributable to use for covering Tiscali S.p.A.’s
previous year’s losses.
The translation reserve underwent a decrease of EUR 39.9
million. This change includes the impact of the change in the
CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES AT 31 DECEMBER 2007
91