Final Results
26 Maggio 2009 - 8:00AM
UK Regulatory
TIDMBWRA
RNS Number : 7518S
Bristol Water PLC
26 May 2009
BRISTOL WATER plc
Bristol Water plc is a subsidiary of Bristol Water Group Ltd, which is itself a
subsidiary of Sociedad General de Aguas de Barcelona S.A. (Agbar)
+--------------------------------------------------------+-----------+-----------+
| Year ended 31 March | 2009 | 2008 |
+--------------------------------------------------------+-----------+-----------+
| | GBPm | GBPm |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| Turnover | 96.7 | 91.0 |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| Operating profit | 29.1 | 26.3 |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| Profit before tax | 17.4 | 17.9 |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| Profit after tax | 12.1 | 14.5 |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| Regulatory Capital Value (RCV) | 265.4 | 275.5 |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| Net debt (excluding 8.75% irredeemable cumulative | 76% | 71% |
| preference shares) as percentage of RCV | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
| | | |
+--------------------------------------------------------+-----------+-----------+
+-----------------------------------------------------------------------------+
| |
+-----------------------------------------------------------------------------+
+------------+-------------------------+---------+----------------------------------+
| For further information contact: | |
+------------------------------------------------+----------------------------------+
| | | |
+--------------------------------------+---------+----------------------------------+
| Alan Parsons, Managing Director | | |
+--------------------------------------+---------+----------------------------------+
| Stefano Pellegri, Finance Director | | |
+--------------------------------------+---------+----------------------------------+
| Bristol Water plc | | |
+--------------------------------------+---------+----------------------------------+
| Tel 0117 953 6407 | | |
+--------------------------------------+---------+----------------------------------+
| | |
+--------------------------------------+--------------------------------------------+
| Or | Bristol Water Corporate Affairs on 0117 953 6470 during office hours |
| contact: | or 07831 453924 at any time. |
+------------+-------------------------+---------+----------------------------------+
CHAIRMAN'S STATEMENT
Introduction
During the 2009 financial year, we have continued to provide an excellent
service to our customers following Ofwat's OPA (Overall Performance Assessment)
ranking for 2008 putting Bristol Water in third position in the industry.
We have been heavily involved in the planning process for the next periodic
review. This review will determine our tariffs and service obligations for the
five years beginning April 2010.
Operational performance
We are now 80% of the way through the current regulatory period 2005-10 and are
continuing to make good progress in the delivery of the outputs required by
Ofwat's determination of price limits for the current period. Three major
capital schemes have been completed:
* A GBP24m project to improve the security of supply for a population of almost
200,000 in the northern and eastern parts of Bristol and its surrounding areas.
This scheme has already been used three times since its completion despite the
initial expectation that it would only be used very rarely. Such resilience
schemes are vitally important to provide the service customers expect in a time
of crisis, however it arises, and they represent an important component of our
investment proposals beyond 2010.
* A GBP14m project to upgrade our Banwell treatment works to improve its
effectiveness in dealing with a range of different raw water qualities. The
complexity of the new technology being used is challenging and finalisation of
commissioning and optimisation continues, although treated water has been put
into supply for some time.
* A GBP7m project to construct a new treatment works to treat water from the River
Axe providing support to customers in the south of our area.
In total, we invested GBP31m in capital projects during the year. We anticipate
a total investment programme for the 5-year regulatory period of about GBP177m
(in current prices, before grants and contributions), which is broadly in line
with Ofwat's assumptions.
Our customer service performance remains at a high level with customer surveys
consistently showing high satisfaction.
We continue to focus our efforts on enhancing our environmental performance,
resulting in a reduced carbon footprint and sensitive environmentally friendly
improvements to our assets within areas of outstanding natural beauty and
scientific importance.
Financial performance
Operating profit increased by GBP2.8m to GBP29.1m during the year. Turnover
benefited from a K factor of +3.6% following the Interim Determination from
Ofwat in December 2007 but was adversely affected by a decline in industrial
consumption. The exceptionally cold weather during the winter months resulted in
an abnormally high level of burst mains and hence increased significantly our
repair costs. Depreciation and infrastructure renewals charges continue to
increase reflecting the on-going investment in our operating assets and
capacity. These adverse effects have offset the benefits of determined efforts
to achieve operating efficiencies.
Net interest charges, excluding those related to retirement benefits and the
preference share dividend, increased by GBP2.0m to GBP10.4m. This mainly
reflects the increase in net debt resulting from the financing of the capital
expenditure programme and an increase in the inflationary element of the charge
related to our index-linked debt. Net interest related to retirement benefits
was a GBP0.2m charge in the year compared to income of GBP1.1m last year.
Profit before tax decreased by GBP0.5m to GBP17.4m. The tax charge of GBP5.3m
represents an effective tax rate of 30% (2008: 19%). The charge in 2008 was net
of a GBP1.9m gain due to a reduction in deferred tax liabilities (after
discounting) following the reduction in corporation tax rates applicable from
April 2008.
Net debt, excluding irredeemable preference shares, increased to GBP201.8m (31
March 2008: GBP196.6m) and represents approximately 76% of Regulatory Capital
Value at 31 March 2009 (31 March 2008: 71%). This is in line with our
projections and as previously indicated we currently anticipate that this ratio
will not exceed 80% for the period to March 2010.
Submission of our Regulatory Final Business Plan
We recently submitted our Final Business Plan covering the five years ending
March 2015 to Ofwat. The plan is available on our website. It follows the
principles set out in our 25-year Strategic Direction Statement and is
consistent with our Draft Business Plan submitted in August 2008.
We seek to address the following issues:
* To achieve sustainable levels of maintenance, following an extended period of
restricting the level of investment, to avoid a deterioration in the performance
of our assets and consequently in our service to customers;
* Investment to maintain water quality at the highest levels, a fundamental
priority for our customers;
* Schemes to provide greater resilience in maintaining supplies should critical
assets become unavailable for any reason; and
* Meeting expected growth in demand from an increasing population and the
projected effects of climate change.
Addressing these issues would require a doubling in the level of investment and
hence significantly increased levels of borrowing. There is also a need to
increase prices to customers by approximately one third in real terms by 2015.
Our proposals, including the effect on prices, were tested in a recent
independent customer survey and received strong support. However, no increase in
prices is welcomed by customers and so we are proposing additional measures to
help those who have genuine difficulty in paying their bills. By 2015 the
average household bill, in current prices, will still remain below GBP4 per
week.
The plan includes several major schemes that will achieve multiple objectives
but will do so at the lowest cost to customers. This integrated approach is
fundamental to achieving our objectives. The plan is fully supported by the
Board who have had detailed involvement in its preparation. Ofwat will issue its
response in late July 2009 in a draft determination.
Prospects
The key risks to the company are operational problems and performance,
regulatory requirements and developments, and financial factors, which are
unpredictable due to the present financial market turmoil and high volatility
related to all main financial indicators. The company is well placed to face the
near future events but it is not immune from the severe financial market
uncertainties in the medium term, which have the potential to impact its ability
to obtain appropriate financing to deliver the future capital programme in the
next regulatory period.
We expect that the results for the year ended 31 March 2010 may include the
following material effects:
* A reduction in demand from commercial customers, an increase in the proportion
of customers who are metered and an approximate 3% increase in charges
* A significant increase in energy and chemical costs
* A significant increase in bad debts reflecting the impact of the recession
* A significant reduction in interest charges related to our index-linked debt
with the projected decline in RPI.
Clearly the final determination from Ofwat in November 2009 of future tariffs
and service obligations will play a significant role in the future of the
company.
Dividends
The company policy is to pay an annual level of ordinary dividends comprising:
* A base level reflecting the cost of capital allowed by Ofwat in the 5-year
determination of price limits, adjusted to reflect actual gearing levels and
where appropriate actual performance relative to Ofwat's assumptions.
* An amount equal to the post-tax interest receivable from Bristol Water Group Ltd
(the ultimate UK parent company) in respect of inter-company loans.
A final dividend of GBP3.2m in respect of the 2008 financial year was approved
at the Annual General Meeting (AGM) in August 2008 and paid in October 2008.
During the year the following interim dividends have been paid in respect of the
2009 financial year:
* First interim for the inter-company loan interest element of GBP1.5m paid in
September 2008
* Second interim in respect of the base level dividend of GBP2.7m paid in December
2008
* Third interim for the inter-company loan interest element of GBP1.4m paid in
March 2009.
A final dividend of GBP3.6m in respect of 2009 will be proposed at the
forthcoming AGM.
Dividends payable on the 8.75% irredeemable preference shares are treated as
interest under the appropriate accounting rules.
Board membership
The composition of the Board has evolved during the year. In May 2008, Dr Arnold
Bates retired as an executive director after 18 years with the company. In July
2008, Manuel Cermerón left his executive director position in the company and is
now a non-executive director. In September 2008, Trevor Smallwood retired from
the Board as Deputy Chairman and independent non-executive director after 9
years service. On 31 March 2009, Manuel Navarro resigned as Chief Executive to
take up a senior position within Agbar as director of its Latin American
operations. He remains on the Board as a non-executive director.
We welcome Robert Davis who was appointed as an independent non-executive
director on 24 November 2008, and, Luis Garcia who was appointed as Chief
Executive on 1 April 2009.
The Board sincerely thanks all of those who have recently left us for their
excellent service to the company. The Board remains experienced and well
balanced to meet the challenges of the future.
Thanks
I would also like to pass on to all staff the Board's appreciation of their
commitment and effort.
I am sure all will join me in sharing the pleasure of our award for Innovation
at the recent Water Industry Achievement Awards 2009 for our Ice-Pigging Project
undertaken in collaboration with the University of Bristol.
Moger Woolley
Chairman
22 May 2009
PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2009
+--------+--------+--------+--------+---------+---------+
| | | | 2009 | 2008 |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| | Note | | GBPm | GBPm |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Turnover | 2 | | 96.7 | 91.0 |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Operating costs | 3 | | (67.6) | (64.7) |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Operating | | | 29.1 | 26.3 |
| profit | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Other net | 4 | | (10.4) | (8.4) |
| interest | | | | |
| payable and | | | | |
| similar charges | | | | |
+-----------------+--------+--------+---------+---------+
| Dividends on | | | | |
| 8.75% | | | | |
| irredeemable | | | | |
| cumulative | | | | |
| preference | | | | |
+-----------------+--------+--------+---------+---------+
| | shares | 4 | | (1.1) | (1.1) |
+--------+--------+--------+--------+---------+---------+
| Interest in | 4 | | (0.2) | 1.1 |
| respect of | | | | |
| retirement | | | | |
| benefit scheme | | | | |
| surplus | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Net interest | | | (11.7) | (8.4) |
| payable and | | | | |
| similar charges | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Profit on | | | 17.4 | 17.9 |
| ordinary | | | | |
| activities | | | | |
| before taxation | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Taxation on | 5 | | (5.3) | (3.4) |
| profit on | | | | |
| ordinary | | | | |
| activities | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Profit on | 11 | | 12.1 | 14.5 |
| ordinary | | | | |
| activities | | | | |
| after taxation | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Earnings per | 6 | | 201.7p | 241.7p |
| ordinary share | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| Dividends per | 12 | | | |
| ordinary share | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| - declared or | | | 206.80p | 152.28p |
| proposed in | | | | |
| respect of the | | | | |
| period | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+-----------------+--------+--------+---------+---------+
| - paid during | | | 146.78p | 198.78p |
| the period | | | | |
+-----------------+--------+--------+---------+---------+
| | | | | |
+--------+--------+--------+--------+---------+---------+
All activities above relate to the continuing activities of the company.
There is no difference between the profit on ordinary activities before taxation
and the retained profit for the financial year stated above and their historical
cost equivalents.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 March 2009
+--------+-------------+--------+--------+--------+--------+
| | | | 2009 | 2008 |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| | Note | | GBPm | GBPm |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| Profit | | | 12.1 | 14.5 |
| attributable to | | | | |
| Bristol Water | | | | |
| plc | | | | |
| shareholders | | | | |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| Actuarial | | | | |
| (losses)/gains | | | | |
| recognised in | | | | |
| respect of | | | | |
+----------------------+--------+--------+--------+--------+
| | retirement | | | (5.8) | 1.1 |
| | benefit | | | | |
| | obligations | | | | |
+--------+-------------+--------+--------+--------+--------+
| Attributable | | | 1.6 | (0.3) |
| deferred | | | | |
| taxation | | | | |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| Change in the | 8 | | (1.2) | - |
| fair value of | | | | |
| the interest | | | | |
| rate swap | | | | |
+----------------------+--------+--------+--------+--------+
| Attributable | 9 | | 0.3 | - |
| deferred | | | | |
| taxation | | | | |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| Total | | | 7.0 | 15.3 |
| recognised | | | | |
| gains for the | | | | |
| year | | | | |
+----------------------+--------+--------+--------+--------+
| | | | | |
+----------------------+--------+--------+--------+--------+
| | | | | |
+--------+-------------+--------+--------+--------+--------+
BALANCE SHEET
at 31 March 2009
+---------------+--------+---------+---------+
| | | 2009 | 2008 |
+---------------+--------+---------+---------+
| | Note | GBPm | GBPm |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Fixed | 7 | 251.7 | 244.1 |
| assets | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Other | | 68.5 | 68.5 |
| investments | | | |
| - Loans to | | | |
| ultimate UK | | | |
| holding | | | |
| company | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Current | | | |
| assets | | | |
+---------------+--------+---------+---------+
| Stocks | | 1.1 | 0.9 |
+---------------+--------+---------+---------+
| Debtors | | 21.6 | 20.9 |
+---------------+--------+---------+---------+
| Investments | 8 | 19.4 | 21.3 |
+---------------+--------+---------+---------+
| Cash | 8 | 1.2 | 0.2 |
| at | | | |
| bank | | | |
| and in | | | |
| hand | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| | | 43.3 | 43.3 |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Creditors: | | | |
| amounts | | | |
| falling | | | |
| due within | | | |
| one year | | | |
+---------------+--------+---------+---------+
| Short | 8 | (2.2) | (16.9) |
| term | | | |
| borrowings | | | |
+---------------+--------+---------+---------+
| Other | | (25.0) | (26.2) |
| creditors | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| | | (27.2) | (43.1) |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Net | | 16.1 | 0.2 |
| current | | | |
| assets | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Total | | 336.3 | 312.8 |
| assets | | | |
| less | | | |
| current | | | |
| liabilities | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Creditors: | | | |
| amounts | | | |
| falling | | | |
| due after | | | |
| more than | | | |
| one year | | | |
+---------------+--------+---------+---------+
| Borrowings | 8 | (220.2) | (201.2) |
| and | | | |
| derivatives | | | |
+---------------+--------+---------+---------+
| Other | | (0.2) | (0.4) |
| creditors | | | |
+---------------+--------+---------+---------+
| | | (220.4) | (201.6) |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| 8.75% | 8 | (12.5) | (12.5) |
| irredeemable | | | |
| cumulative | | | |
| preference | | | |
| shares | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Deferred | | (10.2) | (10.0) |
| income | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Provisions | 9 | (22.8) | (20.3) |
| for | | | |
| liabilities | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Retirement | 10 | 6.3 | 10.1 |
| benefit | | | |
| surplus | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Net | | 76.7 | 78.5 |
| assets | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Capital | | | |
| and | | | |
| reserves | | | |
+---------------+--------+---------+---------+
| Called | | 6.0 | 6.0 |
| up | | | |
| share | | | |
| capital | | | |
+---------------+--------+---------+---------+
| Share | | 4.4 | 4.4 |
| premium | | | |
| account | | | |
+---------------+--------+---------+---------+
| Other | | 4.9 | 5.8 |
| reserves | | | |
+---------------+--------+---------+---------+
| Profit | | 61.4 | 62.3 |
| and | | | |
| loss | | | |
| account | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
| Shareholders' | 11 | 76.7 | 78.5 |
| funds | | | |
+---------------+--------+---------+---------+
| | | | |
+---------------+--------+---------+---------+
CASH FLOW STATEMENT
for the year ended 31 March 2009
+------------+--------+--------+--------+--------+----------+
| | | | 2009 | 2008 |
+---------------------+--------+--------+--------+----------+
| | Note | | GBPm | GBPm |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Net cash inflow | 13(a) | | 47.5 | 49.4 |
| from operating | | | | |
| activities | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Returns on | | | | |
| investments and | | | | |
| servicing of | | | | |
| finance | | | | |
+---------------------+--------+--------+--------+----------+
| Interest | | | 5.1 | 5.6 |
| received | | | | |
+---------------------+--------+--------+--------+----------+
| Interest paid | | | (9.7) | (9.0) |
| on term loans | | | | |
| and debentures | | | | |
+---------------------+--------+--------+--------+----------+
| Interest paid | | | (0.9) | (1.0) |
| on finance | | | | |
| leases | | | | |
+---------------------+--------+--------+--------+----------+
| Dividends paid | | | | |
| on 8.75% | | | | |
| irredeemable | | | | |
| cumulative | | | | |
| preference | | | | |
+---------------------+--------+--------+--------+----------+
| | shares | | | (1.1) | (1.1) |
+------------+--------+--------+--------+--------+----------+
| Net costs of | | | - | (0.2) |
| issue of new | | | | |
| loans | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| | | | (6.6) | (5.7) |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Taxation | | | | |
+---------------------+--------+--------+--------+----------+
| Corporation tax | | | (2.1) | (2.1) |
| paid | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Capital | | | | |
| expenditure and | | | | |
| investing | | | | |
| activities | | | | |
+---------------------+--------+--------+--------+----------+
| Purchase of | | | (32.6) | (50.5) |
| tangible fixed | | | | |
| assets | | | | |
+---------------------+--------+--------+--------+----------+
| Contributions | | | 3.6 | 4.0 |
| received | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| | | | (29.0) | (46.5) |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Equity | 12 | | (8.8) | (11.9) |
| dividends paid | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Cash | | | 1.0 | (16.8) |
| inflow/(outflow) | | | | |
| before | | | | |
| management of | | | | |
| liquid resources | | | | |
| and financing | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Management of | | | | |
| liquid | | | | |
| resources | | | | |
+---------------------+--------+--------+--------+----------+
| being decrease | | | 1.9 | (6.7) |
| in short-term | | | | |
| deposits | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Financing | | | | |
+---------------------+--------+--------+--------+----------+
| New term loans | | | 15.0 | 20.0 |
+---------------------+--------+--------+--------+----------+
| Capital element | | | (1.9) | (2.5) |
| of lease | | | | |
| repayments | | | | |
+---------------------+--------+--------+--------+----------+
| Loan repayments | | | (15.0) | (10.0) |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| | | | (1.9) | 7.5 |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Increase/(decrease) | 13(b) | | 1.0 | (2.6) |
| in cash | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Cash, beginning | | | 0.2 | 2.8 |
| of year | | | | |
+---------------------+--------+--------+--------+----------+
| | | | | |
+---------------------+--------+--------+--------+----------+
| Cash, end of | | | 1.2 | 0.2 |
| year | | | | |
+------------+--------+--------+--------+--------+----------+
NOTES TO THE ACCOUNTS
+--------+---------------+
| 1. | BASIS |
| | OF |
| | PREPARATION |
| | AND |
| | CIRCULATION |
| | These |
| | preliminary |
| | statements |
| | do not |
| | constitute |
| | the |
| | statutory |
| | accounts |
| | for the |
| | year ended |
| | 31 March |
| | 2009 or the |
| | year ended |
| | 31 March |
| | 2008. The |
| | statutory |
| | accounts |
| | for 2008 |
| | have been |
| | delivered |
| | to the |
| | Registrar |
| | of |
| | Companies |
| | and those |
| | for 2009 |
| | have been |
| | reported on |
| | by the |
| | auditors |
| | without |
| | qualification |
| | but have not |
| | yet been |
| | delivered to |
| | the Registrar |
| | of Companies. |
| | The |
| | comparative |
| | figures for |
| | 2008 have |
| | been |
| | extracted |
| | from the |
| | accounts of |
| | Bristol Water |
| | plc for the |
| | year ended 31 |
| | March 2008 |
| | upon which |
| | the auditors' |
| | report was |
| | unqualified |
| | and did not |
| | contain a |
| | statement |
| | under |
| | S.237(2) or |
| | (3) of the |
| | Companies Act |
| | 1985. |
| | While the |
| | financial |
| | information |
| | included in |
| | this |
| | preliminary |
| | announcement |
| | has been |
| | prepared in |
| | accordance |
| | with the |
| | measurement |
| | and |
| | recognition |
| | criteria of |
| | UK GAAP, this |
| | announcement |
| | does not |
| | itself |
| | contain |
| | sufficient |
| | information |
| | to comply |
| | with UK GAAP. |
| | Going concern |
| | The company's |
| | activities, |
| | together with |
| | the factors |
| | likely to |
| | affect its |
| | future |
| | development, |
| | performance |
| | and position |
| | are set out |
| | in the |
| | Chairman's |
| | Statement. |
| | In assessing |
| | the going |
| | concern |
| | basis, the |
| | directors |
| | have |
| | considered |
| | the cash flow |
| | projections |
| | of the |
| | company for |
| | the |
| | foreseeable |
| | future which |
| | show that the |
| | company is |
| | fully funded |
| | to meet its |
| | existing |
| | obligations. |
| | The company |
| | has repaid |
| | existing |
| | loans during |
| | the year and |
| | replaced them |
| | with new |
| | funding |
| | repayable in |
| | 2017. In |
| | addition, the |
| | company has |
| | available a |
| | GBP30m |
| | undrawn |
| | committed |
| | borrowing |
| | facility |
| | which it does |
| | not expect to |
| | have to use. |
| | The company |
| | is well |
| | placed to |
| | face the near |
| | future events |
| | at 31 March |
| | 2009, with |
| | cash and cash |
| | equivalents |
| | of GBP20.6m |
| | and the |
| | GBP30.0m |
| | committed and |
| | unutilised |
| | revolving |
| | credit |
| | facility. |
| | The company |
| | is not immune |
| | from the |
| | severe |
| | financial |
| | market |
| | uncertainties |
| | in the medium |
| | term, which |
| | have the |
| | potential to |
| | impact its |
| | ability to |
| | obtain |
| | appropriate |
| | financing to |
| | deliver the |
| | future |
| | capital |
| | programme in |
| | the next |
| | regulatory |
| | period, |
| | 2010-15. The |
| | performance |
| | of the |
| | company for |
| | the next |
| | regulatory |
| | period will |
| | much depend |
| | on the final |
| | determination |
| | from Ofwat, |
| | due in |
| | November |
| | 2009, which |
| | will set |
| | prices and |
| | indicate |
| | funding |
| | requirements |
| | for the next |
| | 5 years. The |
| | directors |
| | fully support |
| | the final |
| | business plan |
| | submitted to |
| | Ofwat and are |
| | aware of its |
| | impact on |
| | future |
| | financing |
| | needs. They |
| | are fully |
| | informed of |
| | preliminary |
| | discussions |
| | with |
| | financial |
| | institutions |
| | to meet these |
| | needs and |
| | will continue |
| | to monitor |
| | progress. |
| | Accordingly, |
| | the directors |
| | continue to |
| | adopt the |
| | going concern |
| | basis in |
| | preparing the |
| | annual report |
| | and accounts. |
+--------+---------------+
| | |
+--------+---------------+
| | The |
| | preliminary |
| | announcement |
| | was approved |
| | by the Board |
| | of Directors |
| | on 22 May |
| | 2009. |
+--------+---------------+
| | |
+--------+---------------+
| | The |
| | Annual |
| | Report |
| | and |
| | Accounts |
| | will be |
| | posted |
| | to |
| | shareholders |
| | on or before |
| | 6 July 2009. |
| | Copies will |
| | be available |
| | to the |
| | public from |
| | the |
| | registered |
| | office at PO |
| | Box 218, |
| | Bridgwater |
| | Road, |
| | Bristol BS99 |
| | 7AU. The |
| | Annual |
| | General |
| | Meeting will |
| | be held at |
| | the Bristol |
| | Water plc |
| | Head Office, |
| | Bridgwater |
| | Road, |
| | Bristol, on |
| | Monday 3 |
| | August 2009 |
| | at 9.00 am. |
+--------+---------------+
| | |
+--------+---------------+
| | As |
| | outlined |
| | in the |
| | company's |
| | Annual |
| | Report |
| | and |
| | Accounts |
| | for the |
| | year |
| | ended 31 |
| | March |
| | 2008, the |
| | company |
| | has not |
| | adopted |
| | IFRS for |
| | its |
| | financial |
| | statements |
| | for the |
| | year ended |
| | 31 March |
| | 2009, and |
| | has no |
| | current |
| | plans to |
| | do so |
| | until |
| | UKGAAP and |
| | IFRS are |
| | fully |
| | harmonised. |
+--------+---------------+
+--------+------------+
| 2. | TURNOVER |
| | Turnover |
| | is wholly |
| | derived |
| | from |
| | water |
| | supply |
| | and |
| | related |
| | activities |
| | in the |
| | United |
| | Kingdom. |
| | The |
| | maximum |
| | level of |
| | prices the |
| | company |
| | may levy |
| | for the |
| | majority |
| | of water |
| | charges is |
| | controlled |
| | by the |
| | Water |
| | Services |
| | Regulation |
| | Authority |
| | (Ofwat) |
| | through |
| | the RPI |
| | +/- K |
| | price |
| | formula. |
+--------+------------+
+--------+--------------+--------+--------+
| 3. | OPERATING | | |
| | COSTS | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Operating | 2009 | 2008 |
| | costs | | |
| | comprise | | |
| | - | | |
+--------+--------------+--------+--------+
| | | GBPm | GBPm |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Net | 13.1 | 12.2 |
| | payroll | | |
| | cost | | |
+--------+--------------+--------+--------+
| | Total | 34.2 | 32.8 |
| | other | | |
| | operating | | |
| | costs | | |
+--------+--------------+--------+--------+
| | Net | 20.3 | 19.7 |
| | depreciation | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Total | 67.6 | 64.7 |
| | operating | | |
| | costs | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
+--------+--------+--------+------------+--------+--------+--------+--------+--------+--------+
| 4. | NET INTEREST PAYABLE AND | | | | |
| | SIMILAR CHARGES | | | | |
+--------+------------------------------+--------+-----------------+--------+-----------------+
| | | 2009 | 2008 |
+--------+------------------------------+--------------------------+--------------------------+
| | | GBPm | GBPm | GBPm | GBPm |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Other net interest | | | | |
| | payable and similar | | | | |
| | charges relate to - | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Bank borrowings | | 2.3 | | 2.0 |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Term loans and | - | | 7.2 | | 7.1 |
| | debentures | interest | | | | |
| | | charges | | | | |
+--------+-----------------+------------+-----------------+--------+-----------------+--------+
| | | - | | 5.0 | | 3.7 |
| | | indexation | | | | |
+--------+-----------------+------------+-----------------+--------+-----------------+--------+
| | Finance leases | | 0.9 | | 1.0 |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | 15.4 | | 13.8 |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Less: | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | Loan to Bristol | (4.0) | | (4.0) | |
| | | Water Group Ltd | | | | |
| | | - interest | | | | |
| | | receivable | | | | |
+--------+--------+---------------------+-----------------+--------+-----------------+--------+
| | | Other external | (1.0) | | (1.4) | |
| | | investments and | | | | |
| | | deposits | | | | |
+--------+--------+---------------------+-----------------+--------+-----------------+--------+
| | | | | (5.0) | | (5.4) |
+--------+--------+---------------------+-----------------+--------+-----------------+--------+
| | | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Total other net interest | | 10.4 | | 8.4 |
| | payable and similar | | | | |
| | charges | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Dividends on 8.75% | | 1.1 | | 1.1 |
| | irredeemable cumulative | | | | |
| | preference shares | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | Interest charge/(income) | | 0.2 | | (1.1) |
| | in respect of retirement | | | | |
| | benefit scheme surplus | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | | | |
+--------+------------------------------+-----------------+--------+-----------------+--------+
| | | | 11.7 | | 8.4 |
+--------+--------+--------+------------+--------+--------+--------+--------+--------+--------+
+--------+--------------+
| | Dividends |
| | on the |
| | 8.75% |
| | irredeemable |
| | cumulative |
| | preference |
| | shares are |
| | payable at a |
| | fixed rate |
| | of 4.375% on |
| | 1 April and |
| | 1 October |
| | each year. |
| | Payment by |
| | the company |
| | to the share |
| | registrars |
| | is made two |
| | business |
| | days |
| | earlier. The |
| | payments are |
| | classified |
| | as interest |
| | in |
| | accordance |
| | with FRS25. |
+--------+--------------+
+--------+--------+--------+------------+--------+--------+--------+
| 5. | TAXATION ON PROFIT ON | | | |
| | ORDINARY ACTIVITIES | | | |
+--------+------------------------------+--------+--------+--------+
| | | | 2009 | 2008 |
+--------+------------------------------+--------+--------+--------+
| | | | GBPm | GBPm |
+--------+------------------------------+--------+--------+--------+
| | (a) | Analysis of charge for | | |
| | | the year, all arising in | | |
| | | the | | |
| | | United Kingdom: | | |
+--------+--------+------------------------------+--------+--------+
| | | Current tax: | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Corporation tax | | 2.5 | 2.4 |
| | | at 28% (2008: | | | |
| | | 30%) | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Adjustment to | | (0.1) | (0.2) |
| | | prior periods | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | | | 2.4 | 2.2 |
+--------+--------+---------------------+--------+--------+--------+
| | | | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Deferred tax: | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Current year | | 2.7 | 3.1 |
| | | movement | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Effect of | | - | (2.6) |
| | | corporation tax | | | |
| | | rate change | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Effect of | | | |
| | | changes related | | | |
| | | to abolition of | | | |
| | | Industrial | | | |
| | | Buildings | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | | Allowances | | - | (0.9) |
+--------+--------+--------+------------+--------+--------+--------+
| | | Adjustment to | | 0.1 | 0.2 |
| | | prior periods | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | | | 2.8 | (0.2) |
+--------+--------+---------------------+--------+--------+--------+
| | | Effect of | | 0.1 | 1.4 |
| | | discounting | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | | | 2.9 | 1.2 |
+--------+--------+---------------------+--------+--------+--------+
| | | | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | Tax on profit | | 5.3 | 3.4 |
| | | on ordinary | | | |
| | | activities | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | | | | |
+--------+--------+---------------------+--------+--------+--------+
| | | |
+--------+--------+------------------------------------------------+
| | | The charge for corporation tax includes |
| | | amounts that may be paid in consideration |
| | | of group relief surrendered by other |
| | | companies. |
+--------+--------+------------------------------------------------+
| | | |
+--------+--------+------------------------------------------------+
| | | In 2008 a number of measures affecting the |
| | | future tax charges of the company were |
| | | enacted in the Finance Act 2007. The |
| | | effects of the changes are disclosed |
| | | within the above deferred tax charge for |
| | | 2008. These relate to: |
| | | * |
| | | the reduction in the corporation tax rate |
| | | to 28% with effect from 1 April 2008, and, |
| | | * |
| | | the withdrawal of the clawback of IBA's on |
| | | disposal of an industrial building. |
+--------+--------+------------------------------------------------+
| | | |
+--------+--------+------------------------------------------------+
| | | Discount rates have decreased during the |
| | | current year. Within the effect of |
| | | discounting in 2009, a decrease in the |
| | | beneficial effect of discounting of |
| | | GBP1.6m (2008: GBP1.0m) has been |
| | | recognised in respect of the restatement |
| | | of the opening balance at the new rates, |
| | | increasing the overall deferred tax |
| | | charge. |
+--------+--------+------------------------------------------------+
| | | Factors that may affect future tax charges |
| | | ACT is recognised as an asset to the |
| | | extent that it is foreseen to be |
| | | recoverable in the next 12 months. There |
| | | is a further GBP3.9m (2008: GBP3.9m) of |
| | | unrecognised ACT carried forward at 31 |
| | | March 2009. |
+--------+--------+------------------------------------------------+
| | | |
+--------+--------+------------------------------------------------+
| | | The company also holds GBP3.0m (2008: |
| | | GBP3.0m) of unrecognised capital losses, |
| | | which are available to offset against any |
| | | future capital gains. |
+--------+--------+--------+------------+--------+--------+--------+
+--------+--------+--------------+--------+---------+---------+
| 6. | EARNINGS PER | | | |
| | ORDINARY SHARE | | | |
+--------+-----------------------+--------+---------+---------+
| | | | 2009 | 2008 |
+--------+-----------------------+--------+---------+---------+
| | | | m | m |
+--------+-----------------------+--------+---------+---------+
| | Earnings per | | | |
| | ordinary share | | | |
| | have been | | | |
| | calculated as | | | |
| | follows - | | | |
+--------+-----------------------+--------+---------+---------+
| | On average | | | |
| | number of | | | |
| | ordinary shares | | | |
| | in issue during | | | |
| | the year - | | | |
+--------+-----------------------+--------+---------+---------+
| | | Earnings | | GBP12.1 | GBP14.5 |
| | | attributable | | | |
| | | to ordinary | | | |
| | | shares | | | |
+--------+--------+--------------+--------+---------+---------+
| | | Weighted | | 6.0 | 6.0 |
| | | average | | | |
| | | number | | | |
| | | of | | | |
| | | ordinary | | | |
| | | shares | | | |
+--------+--------+--------------+--------+---------+---------+
| | | | | | |
+--------+--------+--------------+--------+---------+---------+
| | | | | | |
+--------+--------+--------------+--------+---------+---------+
| | As the company has no obligation to issue |
| | further shares, disclosure of earnings per |
| | share on a fully diluted basis is not |
| | required. |
+--------+--------+--------------+--------+---------+---------+
+----+---------------------------------------------+-----+------+---------+---------+
| 7. | TANGIBLE FIXED ASSETS | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | 2009 | 2008 |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | GBPm | GBPm |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | Net book value, beginning of year | | | 244.1 | 218.7 |
+----+---------------------------------------------+-----+------+---------+---------+
| | Additions | | | 31.3 | 49.6 |
+----+---------------------------------------------+-----+------+---------+---------+
| | Disposals | | | - | - |
+----+---------------------------------------------+-----+------+---------+---------+
| | Grants and contributions | | | (2.9) | (4.0) |
+----+---------------------------------------------+-----+------+---------+---------+
| | Depreciation | | | (20.8) | (20.2) |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | Net book value, end of year | | | 251.7 | 244.1 |
+----+---------------------------------------------+-----+------+---------+---------+
+----+---------------------------------------------+-----+------+---------+---------+
| 8. | NET BORROWINGS AND DERIVATIVES | |
+----+---------------------------------------------------+--------------------------+
| | | | | 2009 | 2008 |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | GBPm | GBPm |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | Investments and cash at bank and in hand | | | 20.6 | 21.5 |
+----+---------------------------------------------+-----+------+---------+---------+
| | Debt due within one year | | | (2.2) | (16.9) |
+----+---------------------------------------------+-----+------+---------+---------+
| | Debt due after one year excluding interest | | | (219.0) | (201.2) |
| | rate swap | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | Fair value of interest rate swap | | | (1.2) | - |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | Net borrowings and derivatives excluding | | | (201.8) | (196.6) |
| | 8.75% irredeemable cumulative preference | | | | |
| | shares | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | 8.75% irredeemable cumulative preference | | | (12.5) | (12.5) |
| | shares | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | Net borrowings and derivatives including | | | (214.3) | (209.1) |
| | 8.75% irredeemable cumulative preference | | | | |
| | shares | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
| | | | | | |
+----+---------------------------------------------+-----+------+---------+---------+
+--------+--------------+--------+--------+
| 9. | PROVISIONS FOR |
| | LIABILITIES |
+--------+--------------------------------+
| | | 2009 | 2008 |
+--------+--------------+--------+--------+
| | | GBPm | GBPm |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Provision for deferred |
| | tax comprises - |
+--------+--------------------------------+
| | | | |
+--------+--------------+--------+--------+
| | Accelerated | 39.4 | 37.3 |
| | capital | | |
| | allowances | | |
| | and capital | | |
| | element of | | |
| | finance | | |
| | leases | | |
+--------+--------------+--------+--------+
| | Deferred | (1.6) | (1.8) |
| | income | | |
+--------+--------------+--------+--------+
| | Short | (0.2) | (0.6) |
| | term | | |
| | timing | | |
| | differences | | |
+--------+--------------+--------+--------+
| | Retirement | 2.4 | 3.9 |
| | benefit | | |
| | obligations | | |
+--------+--------------+--------+--------+
| | Interest | (0.3) | - |
| | rate | | |
| | swap | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | | 39.7 | 38.8 |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Effect | (14.5) | (14.6) |
| | of | | |
| | discounting | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Net | 25.2 | 24.2 |
| | provision, | | |
| | including | | |
| | deferred | | |
| | tax on | | |
| | retirement | | |
| | benefit | | |
| | obligations | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Less, | (2.4) | (3.9) |
| | attributable | | |
| | to | | |
| | retirement | | |
| | benefit | | |
| | obligations | | |
+--------+--------------+--------+--------+
| | | | |
+--------+--------------+--------+--------+
| | Net | 22.8 | 20.3 |
| | provision, | | |
| | excluding | | |
| | deferred | | |
| | tax on | | |
| | retirement | | |
| | benefit | | |
| | obligations | | |
+--------+--------------+--------+--------+
+--------+--------+-------------+--------+--------+
| | Deferred tax | 2009 | 2008 |
| | movement: | | |
+--------+----------------------+--------+--------+
| | | GBPm | GBPm |
+--------+----------------------+--------+--------+
| | | | |
+--------+----------------------+--------+--------+
| | Provision at 1 | 24.2 | 22.7 |
| | April | | |
+--------+----------------------+--------+--------+
| | | | |
+--------+----------------------+--------+--------+
| | Charge to | 2.9 | 1.2 |
| | Profit and Loss | | |
| | Account (note | | |
| | 5) | | |
+--------+----------------------+--------+--------+
| | (Credit)/charge | | |
| | to Statement of | | |
| | Total | | |
| | Recognised | | |
| | Gains and | | |
| | Losses in | | |
| | respect of: | | |
+--------+----------------------+--------+--------+
| | | Retirement | (1.6) | 0.3 |
| | | benefit | | |
| | | obligations | | |
+--------+--------+-------------+--------+--------+
| | | Interest | (0.3) | - |
| | | rate | | |
| | | swap | | |
+--------+--------+-------------+--------+--------+
| | | | |
+--------+----------------------+--------+--------+
| | Provision at 31 | 25.2 | 24.2 |
| | March | | |
+--------+--------+-------------+--------+--------+
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| 10. | RETIREMENT BENEFIT OBLIGATIONS |
+-----+------------------------------------------------------------------------------------------------+
| | |
+-----+------------------------------------------------------------------------------------------------+
| | The following table sets out the key assumptions used for the valuation of the company's |
| | section of the Water Companies' Pension Scheme (WCPS). The table also sets out as at the |
| | accounting date the fair value of the assets, a breakdown of the assets into the main asset |
| | classes, the present value of the section liabilities, and the resulting surplus. The |
| | obligations are accounted for on an FRS17 basis. |
+-----+------------------------------------------------------------------------------------------------+
| | | | |
+-----+------------------------------+--------------------------------+--------------------------------+
| | | Expected long term | | Market values of |
+-----+------------------------------+--------------------------------+--+-----------------------------+
| | | rate of return | | section assets |
+-----+------------------------------+--------------------------------+--+-----------------------------+
| | | 2009 | 2008 | 2007 | | 2009 | 2008 | 2007 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | | | | | | GBPm | GBPm | GBPm |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | | | | | | | | |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Equities | 8.0% | 7.7% | 7.8% | | 26.9 | 41.1 | 61.9 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Bonds | 4.1% | 4.4% | 4.7% | | 96.8 | 97.2 | 69.3 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Cash | 1.9% | 3.9% | 5.4% | | 0.1 | 0.2 | 0.1 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Market value of section assets | | | | 123.8 | 138.5 | 131.3 |
+-----+-----------------------------------------+----------+----------+--+---------+---------+---------+
| | Present value of liabilities | | | | (106.2) | (121.9) | (120.0) |
+-----+-----------------------------------------+----------+----------+--+---------+---------+---------+
| | | | | | | | | |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Surplus in the section | | | | | 17.6 | 16.6 | 11.3 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Amount not recognised due to recognition limit | | (8.9) | (2.6) | - |
+-----+---------------------------------------------------------------+--+---------+---------+---------+
| | Surplus in section | | | | | 8.7 | 14.0 | 11.3 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Deferred taxation at 28% (2008 and 2007: 30%) | | (2.4) | (3.9) | (3.0) |
+-----+---------------------------------------------------------------+--+---------+---------+---------+
| | | | | | | | | |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
| | Net pension asset | | | | | 6.3 | 10.1 | 8.3 |
+-----+------------------------------+----------+----------+----------+--+---------+---------+---------+
+-----+--------------------------------------------------------+---------+---------+
| 11. | MOVEMENT IN SHAREHOLDERS' FUNDS | | |
+-----+--------------------------------------------------------+---------+---------+
| | | 2009 | 2008 |
+-----+--------------------------------------------------------+---------+---------+
| | | GBPm | GBPm |
+-----+--------------------------------------------------------+---------+---------+
| | | | |
+-----+--------------------------------------------------------+---------+---------+
| | At beginning of year | 78.5 | 75.1 |
+-----+--------------------------------------------------------+---------+---------+
| | | | |
+-----+--------------------------------------------------------+---------+---------+
| | Profit for year | 12.1 | 14.5 |
+-----+--------------------------------------------------------+---------+---------+
| | Actuarial gains recognised in respect of retirement | (5.8) | 1.1 |
| | benefit obligations | | |
+-----+--------------------------------------------------------+---------+---------+
| | Attributable deferred taxation | 1.6 | (0.3) |
+-----+--------------------------------------------------------+---------+---------+
| | Fair value of interest rate swap | (1.2) | - |
+-----+--------------------------------------------------------+---------+---------+
| | Attributable deferred taxation | 0.3 | - |
+-----+--------------------------------------------------------+---------+---------+
| | Dividends | (8.8) | (11.9) |
+-----+--------------------------------------------------------+---------+---------+
| | | | |
+-----+--------------------------------------------------------+---------+---------+
| | End of year | 76.7 | 78.5 |
+-----+--------------------------------------------------------+---------+---------+
| | | | |
+-----+--------------------------------------------------------+---------+---------+
+--------+-----------+--------+--------+--------+
| 12. | DIVIDENDS | | | |
| | IN | | | |
| | RESPECT | | | |
| | OF | | | |
| | ORDINARY | | | |
| | SHARES | | | |
+--------+-----------+--------+--------+--------+
| | | | 2009 | 2008 |
+--------+-----------+--------+--------+--------+
| | | | GBPm | GBPm |
+--------+-----------+--------+--------+--------+
| | Dividends | | | |
| | paid | | | |
+--------+-----------+--------+--------+--------+
| | | | | |
+--------+-----------+--------+--------+--------+
| | Dividend | | | |
| | in | | | |
| | respect | | | |
| | of 2007: | | | |
+--------+-----------+--------+--------+--------+
| | Final | | | |
| | dividend | | | |
| | of | | | |
| | 100.03 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | - | 6.0 |
| | by the | | | |
| | Board on | | | |
| | 31 May | | | |
| | 2007 | | | |
+--------+-----------+--------+--------+--------+
| | | | | |
+--------+-----------+--------+--------+--------+
| | Dividend | | | |
| | in | | | |
| | respect | | | |
| | of 2008: | | | |
+--------+-----------+--------+--------+--------+
| | First | | | |
| | interim | | | |
| | dividend | | | |
| | of 23.60 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | - | 1.4 |
| | by the | | | |
| | Board on | | | |
| | 28 | | | |
| | September | | | |
| | 2007 | | | |
+--------+-----------+--------+--------+--------+
| | Second | | | |
| | interim | | | |
| | dividend | | | |
| | of 51.68 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | - | 3.1 |
| | by the | | | |
| | Board on | | | |
| | 29 | | | |
| | November | | | |
| | 2007 | | | |
+--------+-----------+--------+--------+--------+
| | Third | | | |
| | interim | | | |
| | dividend | | | |
| | of 23.47 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | - | 1.4 |
| | by the | | | |
| | Board on | | | |
| | 27 March | | | |
| | 2008 | | | |
+--------+-----------+--------+--------+--------+
| | Final | | | |
| | dividend | | | |
| | of 53.35 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | 3.2 | - |
| | by the | | | |
| | Board on | | | |
| | 4 August | | | |
| | 2008 | | | |
+--------+-----------+--------+--------+--------+
| | | | | |
+--------+-----------+--------+--------+--------+
| | Dividend | | | |
| | in | | | |
| | respect | | | |
| | of 2009: | | | |
+--------+-----------+--------+--------+--------+
| | First | | | |
| | interim | | | |
| | dividend | | | |
| | of 24.27 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | 1.5 | - |
| | by the | | | |
| | Board on | | | |
| | 26 | | | |
| | September | | | |
| | 2008 | | | |
+--------+-----------+--------+--------+--------+
| | Second | | | |
| | interim | | | |
| | dividend | | | |
| | of 45.02 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | 2.7 | - |
| | by the | | | |
| | Board on | | | |
| | 24 | | | |
| | November | | | |
| | 2008 | | | |
+--------+-----------+--------+--------+--------+
| | Third | | | |
| | interim | | | |
| | dividend | | | |
| | of 24.14 | | | |
| | pence | | | |
| | per | | | |
| | share, | | | |
+--------+-----------+--------+--------+--------+
| | approved | | 1.4 | - |
| | by the | | | |
| | Board on | | | |
| | 30 March | | | |
| | 2009 | | | |
+--------+-----------+--------+--------+--------+
| | | | | |
+--------+-----------+--------+--------+--------+
| | | | 8.8 | 11.9 |
+--------+-----------+--------+--------+--------+
| | | | | |
+--------+-----------+--------+--------+--------+
| | On 18 May 2009 the Board proposed |
| | a final dividend of 60.02 pence |
| | per share, totalling GBP3.6m, in |
| | respect of the year ended 31 |
| | March 2009 (31 March 2008: 53.35p |
| | per share totalling GBP3.2m). In |
| | accordance with FRS21 this |
| | dividend is not recognised in |
| | these accounts as a liability. |
+--------+-----------+--------+--------+--------+
+-------+-----+----------------------------------------------------+---------+---------+
| 13. | SUPPLEMENTARY CASH FLOW INFORMATION |
+-------+------------------------------------------------------------------------------+
| | | |
+-------+-----+------------------------------------------------------------------------+
| | (a) | Reconciliation of operating profit to net cash inflow from operating |
| | | activities - |
+-------+-----+------------------------------------------------------------------------+
| | | |
+-------+-----+------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+-------+-----+----------------------------------------------------+---------+---------+
| | | | GBPm | GBPm |
+-------+-----+----------------------------------------------------+---------+---------+
| | | | | |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Operating profit | 29.1 | 26.3 |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Depreciation, net of amortisation of deferred | 20.3 | 19.7 |
| | | income | | |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Difference between pension charges and normal | 0.2 | 0.6 |
| | | contributions | | |
+-------+-----+----------------------------------------------------+---------+---------+
| | | | | |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Cash flow from operations | 49.6 | 46.6 |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Working capital movements - | | |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Stocks | (0.2) | (0.1) |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Debtors | (0.7) | (0.2) |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Creditors and provisions | (0.2) | 4.1 |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Additional contributions to pension scheme | (1.0) | (1.0) |
+-------+-----+----------------------------------------------------+---------+---------+
| | | | | |
+-------+-----+----------------------------------------------------+---------+---------+
| | | Net cash inflow from operating activities | 47.5 | 49.4 |
+-------+-----+----------------------------------------------------+---------+---------+
| | | | | |
+-------+-----+----------------------------------------------------+---------+---------+
+----+-----+----------------------------------------------------+---------+---------+
| | (b) | Reconciliation of net cash flow to movement in net borrowings - |
+----+-----+------------------------------------------------------------------------+
| | | | 2009 | 2008 |
+----+-----+----------------------------------------------------+---------+---------+
| | | | | |
+----+-----+----------------------------------------------------+---------+---------+
| | | | GBPm | GBPm |
+----+-----+----------------------------------------------------+---------+---------+
| | | | | |
+----+-----+----------------------------------------------------+---------+---------+
| | | Increase/(decrease) in net cash in year | 1.0 | (2.6) |
+----+-----+----------------------------------------------------+---------+---------+
| | | Cash used to repay borrowings | 16.9 | 12.5 |
+----+-----+----------------------------------------------------+---------+---------+
| | | Cash from new borrowings | (15.0) | (20.0) |
+----+-----+----------------------------------------------------+---------+---------+
| | | Net costs of issue of loans | - | 0.2 |
+----+-----+----------------------------------------------------+---------+---------+
| | | Cash from decrease in short term deposits | (1.9) | (6.7) |
+----+-----+----------------------------------------------------+---------+---------+
| | | | | |
+----+-----+----------------------------------------------------+---------+---------+
| | | | 1.0 | (16.6) |
+----+-----+----------------------------------------------------+---------+---------+
| | | Indexation not affecting cash flow | (5.0) | (3.7) |
+----+-----+----------------------------------------------------+---------+---------+
| | | Fair value of interest rate swap not affecting | (1.2) | - |
| | | cash flow | | |
+----+-----+----------------------------------------------------+---------+---------+
| | | Net borrowings at 1 April including 8.75% | (209.1) | (188.8) |
| | | irredeemable cumulative preference shares | | |
+----+-----+----------------------------------------------------+---------+---------+
| | | | | |
+----+-----+----------------------------------------------------+---------+---------+
| | | Net borrowings at 31 March including 8.75% | (214.3) | (209.1) |
| | | irredeemable cumulative preference shares | | |
+----+-----+----------------------------------------------------+---------+---------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR ATMATMMITBPL
Grafico Azioni Bristol Wtr.8t% (LSE:BWRA)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Bristol Wtr.8t% (LSE:BWRA)
Storico
Da Lug 2023 a Lug 2024
