| |  | | | | Aftermarket services
The company has responded to the market demand for a comprehensive range of aftermarket services. Increasingly, the company is selling Total Care packages, covering long-term support for customers' engines. This is leading to an increase in long-term contracts where the engine maintenance agreement may be linked to, and entered into at the same time as, the original equipment sale. In such cases, the original equipment sale and support activities, including the sale of spare parts, will form part of the same long-term contract. The pricing of such contracts differs from conventional engine sales and reflects the long-term nature of the contract. Profit will be taken progressively on a prudent basis and any amounts recoverable on these contracts are included in debtors. | | |
