true value for investors
true value for investors
The Randstad share reflects true value for investors. This may sound odd, given that Total Shareholder Return amounted to minus 42% in 2008 and that no dividend will be paid for 2008. However, long-term prospects are positive.

22. Trade and other receivables

(amounts in millions of €, unless otherwise indicated)

  2008  2007
       
Trade receivables 2,587.4   1,419.0
Less: provision for impairment 83.5   25.4
Trade receivables, net of provision for impairment 2,503.9   1,393.6
Other receivables 261.1   144.5
Prepayments 53.7   32.0
Held-to-maturity investments 1.7   0.3
       
  2,820.4   1,570.4

The book value of these receivables equals the fair value.

The Group does not hold any collateral as security.

Movements in the provision for impairment of trade receivables are:

  2008  2007
       
Value at January 1 25.4   25.3
Acquisition of subsidiaries 54.3   0.2
Charged to income statement 18.3   6.4
Receivables written off as uncollectible -13.7   -6.1
Translation differences -0.8   -0.4
       
Value at December 31 83.5   25.4

In the provision for impairment of trade receivables an amount of € 49.6 million (2007: € 19.7 million) is included for individually-impaired receivables.

The charge to the income statement has been included in selling expenses.

Amounts charged to the provision for impairment of trade receivables are generally written off when there is no expectation of recovering additional cash.

There is no concentration of credit risk with respect to trade receivables, as the Group has very many customers in a large number of industries and countries.

The aging of trade receivables, based on invoice date, is:

 
2008
2007
  amount  %  amount  %
               
0-4 weeks 1,344.2 52.0   898.3   63.3
5-16 weeks 1,082.0 41.8   470.1   33.1
17-26 weeks 65.2   2.5   21.3   1.5
                
Not impaired 2,491.4     1,389.7    
Impaired 96.0   3.7   29.3   2.1
               
  2,587.4 100.0   1,419.0   100.0

The trade receivables that are neither past due nor impaired amount to € 1,830 million (2007: € 1,019 million); an amount of € 661 million (2007: € 371 million) is past due, but not impaired.

The information with regard to aging categories is - in line with internal management reporting and credit control procedures - based upon invoice date, since management considers that the risk of non-payment starts as from this date.

The impaired trade receivables are provided for excluding value-added taxes.