TIDMBWRA
RNS Number : 0068R
Bristol Water PLC
05 December 2016
Announcement of interim results for the six months ended 30
September 2016
Bristol Water plc is ultimately owned by iCON Infrastructure
Partners III, LP (50%), Sociedad General de Aguas de Barcelona S.A.
(Agbar) (30%), and Itochu Corporation of Japan (20%).
On 14 November 2016 iCON Infrastructure agreed to purchase
Agbar's 30% stake in Bristol Water which will take effect on 15
December 2016.
Bristol Water plc supplies water to over 1.2 million people and
businesses in an area of almost 2,400 square kilometres centred on
Bristol.
For further information contact:
Luis Garcia, Chief Executive
Mick Axtell, Chief Financial Officer
Bristol Water plc
Tel 0117 953 6470
Or contact: Bristol Water Corporate Affairs on 0117 953 6470
during office hours or 07554 771538 at any time.
FINANCIAL HIGHLIGHTS
GBPm
Profit after taxation for 6 months to
30 September 2015 10.2
------
Significant changes between periods:
Decrease in revenue (0.6)
Decrease in operational expenditure 0.6
Decrease in depreciation 0.1
Increase in debt indexation charge (0.7)
Decrease in other interest charges 0.2
(0.4)
Decrease in taxation due to reinstated
capital allowances previously waived 0.3
Decrease in taxation due to tax rate
change 3.3
Profit after taxation for 6 months to
30 September 2016 13.4
------
Summary
-- Reduced revenue reflecting K-factor of -1.8% offset by RPI increase
-- Continued stable underlying financial and operational performance
-- Significant level of capital investment continued with a
GBP14.4m investment during the period
-- Increase in debt indexation charge due to higher RPI
CHAIRMANS STATEMENT
This period has been marked by strong performance and changes to
our organisation with the completion of our new operating model and
our successful entry into the Non Household Retail shadow market.
This demonstrates our commitment to excellent service to our
customers and the Company's ability to deliver its targets for the
AMP6 period, to meet the regulatory challenges on the horizon.
The Company has performed well operationally over the last six
months. Weather conditions have been favourable and we have not
experienced a high number of bursts. The commitment of our staff
and contracting partners and improved customer communications has
meant we have been able to minimise the impact of any disruption
sustained by our customers during these incidents. One exception to
this was a burst at Kingswood on August Bank Holiday which was a
hot day when demand for water was high. This was a particularly
challenging burst to fix and we regret the impact this had on those
affected customers.
The general improved performance around bursts, which is
measured in 'Unplanned Customer Minutes Lost' reflects an overall
positive picture on our performance commitments at this half year
review, and provides a reassuring outlook for the year end. Our new
selective compulsory metering on change of occupancy programme will
help improve our position on Household Meter Penetration, which
remains the most challenging target, and is an important step
towards better use of resources.
Ofwat's service measure, SIM, captures the customer experience,
their interaction with the Company and the reasons that prompted
them to contact us. The latest SIM wave results, wave two published
in September 2016, placed us 4(th) out of 18 companies in the
industry, a slight improvement from our 5(th) position for end of
year 15/16. We are seeking to maintain and improve the customer
experience by introducing new communication and feedback channels
and initiatives such as Customer Service Week and training.
As well as our regulatory performance targets we conduct monthly
customer satisfaction surveys for a deeper dive into the impact of
our work and to monitor our effectiveness and reputation. This
figure has risen slightly from 4.42 (out of 5) in April to 4.46 in
September with only slight deviations in between, bringing
reassurance of consistency and satisfaction with our service, with
room for improvement as always.
We have seen a significant improvement in value for money
ratings from our customers that reflects the 16% reduction in bills
following the Regulatory Price Determination effective from April
2015.
This has had an inevitable impact on revenue. In 2015/16 income
to the end of March was GBP21.9m lower than the year before. Prices
reduced further in 2016/17 leading to a reduction in income of
GBP0.6m in the results to September compared with the same period
last year. In order that we continue to deliver for customers, we
have maintained financial stability by targeting early delivery of
efficiencies, reprioritising our capital and maintenance
expenditure and restricting shareholder dividends.
These actions have collectively meant that our profit before tax
is only GBP0.4m lower than the comparative period last year, and
our net debt position has remained fairly constant compared to the
last year end. As a result of this stringent financial management
and our commitment to improvement we have maintained our Baa1
Moody's credit rating.
The principal risks and uncertainties are assessed as including
high inflation, interest rates and unforeseen costs. Unforeseen
costs are most likely to occur from unknown events and adverse
weather conditions. Brexit remains an unknown effect with uncertain
timing.
The new operating model will make the Company more resilient and
efficient. Now implementation is complete we enter a period of
review and refinement as we embed the changes and support our staff
in their new ways of working under the new organisational
structure. Other key areas of business improvement concern asset
and commercial management, detailed in our Project Channel, which
will help deliver efficiencies through to 2020 (Asset Management
Plan 6).
The start of Non Household Retail shadow market in September was
a significant milestone in our journey towards Open Water, the new
water market. Shadow operation gives Bristol Water and our
incumbent retailer water2business (a joint venture of our holding
company with Wessex Water) an opportunity to test and refine the
many systems and processes that have been put in place to enable
all parties, and other retailers, to operate in this new water
market when it goes live on 3 April 2017.
We have applied to the environment secretary for permission to
exit the non-household retail market. With approval from the
Department for the Environment, Food and Rural Affairs, we will
separate our wholesale business and transfer all of our
non-household customers to water2business.
Open Water represents the biggest change to the water industry
since privatisation. The Company has risen to the challenge by
implementing a complex IT infrastructure and a highly engaging
internal staff awareness programme, and ensuring that we are ready
for retail at every touch point across the business. We have
created some great tools to aid customer understanding and are
working closely with Ofwat and our industry partners to ensure
that, come April next year, businesses will be aware that they can
switch and that Open Water will deliver better choice and enhanced
services to business customers.
Our attention has also turned to scoping the capabilities
required to operate in the domestic water market following
recommendation from Ofwat to the Government that this should go
ahead.
Our AMP6 capital work has now started in earnest. The Southern
Resilience Scheme is one of the Company's biggest infrastructure
projects to date and at the time of the this review, work has just
started on the new 30km trunk main that will improve security of
supply to 280,000 customers in Somerset. We are working closely
with multiple agencies and stakeholders to reduce the impact of
this significant project, and are committed as always to our high
principles in corporate citizenship to do our best for people,
communities and the environment.
The last six months has also seen successful completion of the
first phase of a mains renovation scheme across the heart of
Bristol, from our Victoria Reservoir to Fishponds in the east of
the city. We have minimised customer and traffic disruption by
using the slip lining technique and have received a handful of
enquiries and no complaints as a result of good planning and
communications.
Our visibility has been particularly high this year as a result
of our partnership with Refill Bristol, a campaign to encourage
people to carry refillable water bottles rather than buy single use
plastic. Hundreds of businesses in Bristol have signed up as Refill
stations where people can Refill with tap water for free and we
produced a map app to help people locate these water points, as
well as trendy stainless steel Refill bottles for people to buy. We
also created a Refill Water Bar for Bristol's vibrant festival
scene and served free water to more than 15,000 people at events,
including the Bristol International Balloon Fiesta. It has recently
won the Environmental Innovation of the year award at the Bristol
and Bath Environmental Awards.
Positioning our product at the heart of the community earns us
positive PR and recognition of the benefits of tap water over
bottled water in terms of saving money, litter and plastic
waste.
We continue to support local good causes where possible by
donating water butts and distributing water efficiency packs widely
on request. We have also sponsored exhibitions, events and
activities that are aligned to our values and that enhance the
quality of life in the region, such as the 'Festival of Nature'.
The water industry charity WaterAid also benefits from team and
personal challenges. We are always greatly encouraged by how well
customers respond to the WaterAid campaign we insert in our
bills.
On 14(th) November iCON Infrastructure agreed to purchase a 30%
stake in Bristol Water from Suez, which will take effect on 15(th)
December. This brought the 10-year relationship with Agbar (now
part of Suez) to a natural end, following their takeover of Bristol
Water in 2006 and the sale of a 70% stake in 2011.
iCON has an established track record of investing in high
quality infrastructure businesses on behalf of its investors and
believes in responsible stewardship; this includes health &
safety, empowerment of people and corporate and social
responsibility. Paul Malan, Senior Partner of iCon Infrastructure
LLP, said "iCON is a committed long term owner of the interest that
it holds in the company and believes that Bristol Water has a
bright future as an independent company."
iCON's acquisition of Agbar's interest is a strong sign of
confidence in Bristol Water and recognition that the transformation
of our business, while challenging, has been worthwhile in securing
our future.
I would like to close with thanks to staff for the commitment to
customers and the high level of performance that has been achieved
in the first six months of this year.
Keith Ludeman
Chairman
2 December 2016
INCOME STATEMENT
For the six months ended 30 September 2016
Six months to Six months to Year to
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Revenue 3.2,5 55.0 55.6 110.9
Operating expenses 6 (38.4) (39.1) (74.8)
-------------- -------------- ----------
Operating profit 16.6 16.5 36.1
Other net interest payable and similar charges 7 (3.6) (3.1) (7.2)
Dividends on 8.75% irredeemable cumulative preference
Shares 7 (0.5) (0.5) (1.1)
-------------- -------------- ----------
Net interest payable and similar charges (4.1) (3.6) (8.3)
-------------- -------------- ----------
Profit on ordinary activities before taxation 12.5 12.9 27.8
Taxation on profit on ordinary activities 8 0.9 (2.7) 0.8
Profit for the period 13.4 10.2 28.6
-------------- -------------- ----------
Earnings per ordinary share 11 223.3p 170.0p 476.7p
-------------- -------------- ----------
All activities above relate to the continuing activities of the
Company.
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2016
Six months to Six months to Year to
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Profit attributable to Bristol Water plc shareholders 13.4 10.2 28.6
Other comprehensive income:
Items that will not be reclassified to profit and loss
Actuarial (losses) / gains on retirement benefit surplus (0.9) 5.9 (2.2)
Attributable current taxation 8 (0.1) - 1.1
Change in the fair value of the interest rate swaps (1.0) 0.4 (0.3)
Deferred taxation 8 0.3 (1.3) (7.9)
Other comprehensive (expense) / income for the year, net of
tax (1.7) 5.0 (9.3)
-------------- -------------- ----------
Total comprehensive income for the period 11.7 15.2 19.3
STATEMENT OF FINANCIAL POSITION
As at 30 September 2016
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Fixed assets
Property, plant and equipment 9 560.7 552.6 556.6
Intangible assets 10 4.9 5.7 5.0
Other investments - Loans
to a UK holding company 68.5 68.5 68.5
-------------- -------------- -----------
634.1 626.8 630.1
Current assets
Inventories 1.3 1.3 1.3
Trade and other receivables 33.2 31.4 30.7
Cash and cash equivalents 16 18.0 11.2 18.0
-------------- -------------- -----------
52.5 43.9 50.0
-------------- -------------- -----------
Creditors: amounts falling
due within one year
Current portion of borrowings 12 (0.4) (0.4) (0.4)
Other creditors (30.8) (32.9) (33.0)
-------------- -------------- -----------
(31.2) (33.3) (33.4)
-------------- -------------- -----------
Net current assets 21.3 10.6 16.6
Total assets less current
liabilities 655.4 637.4 646.7
-------------- -------------- -----------
Creditors: amounts falling
due after more than one
year
Borrowings and derivatives 12 (309.8) (306.2) (308.4)
8.75% irredeemable cumulative
preference shares 12 (12.5) (12.5) (12.5)
Deferred income 14 (72.9) (70.2) (71.7)
Provision for liabilities 15 (55.9) (77.3) (59.1)
Net assets excluding
retirement benefit surplus 204.3 171.2 195.0
-------------- -------------- -----------
Retirement benefit surplus 16 31.7 53.2 31.9
Net assets including
retirement benefit surplus 236.0 224.4 226.9
-------------- -------------- -----------
Equity
Called-up share capital 6.0 6.0 6.0
Share premium account 4.4 4.4 4.4
Other reserves 3.3 4.6 4.1
Retained earnings 222.3 209.4 212.4
Total Equity 236.0 224.4 226.9
-------------- -------------- -----------
STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2016
Called up Share Capital Hedging Retained Total
share premium redemption reserve earnings
capital
GBPm GBPm GBPm GBPm GBPm GBPm
Balance at 1 April
2015 6.0 4.4 5.8 (1.5) 196.1 210.8
------------ ------------ ------------ ------------ ------------ ----------
- - - -
Profit for the year 28.6 28.6
Other comprehensive
income for the year:
Actuarial gains
recognised in
respect
of retirement
benefit
obligations - - - - (2.2) (2.2)
Attributable
current
taxation - - - - 1.1 1.1
Fair value of
interest rate
swap - - - (0.3) - (0.3)
Deferred
taxation - - - 0.1 (8.0) (7.9)
Total comprehensive
income for the year - - - (0.2) 19.5 19.3
------------ ------------ ------------ ------------- ------------ ----------
Ordinary dividends - - - - (3.2) (3.2)
Balance as at 31
March 2016 6.0 4.4 5.8 (1.7) 212.4 226.9
------------ ------------ ------------ ------------- ------------ ----------
Balance as at 1
April 2016 6.0 4.4 5.8 (1.7) 212.4 226.9
------------ ------------ ------------ ------------- ------------ ----------
Profit for the
period - - - - 13.4 13.4
Other comprehensive
income for the
period:
Actuarial gains - - - -
recognised in
respect of
retirement
benefit
obligations (0.9) (0.9)
Attributable
current taxation - - - - (0.1) (0.1)
Fair value of
interest rate
swaps - - - (1.0) - (1.0)
Deferred taxation - - - 0.2 0.1 0.3
Total comprehensive
income for the
period - - - (0.8) 12.5 11.7
------------ ------------ ------------ ------------- ------------ ----------
Ordinary dividends - - - - (2.6) (2.6)
Balance as at 30
September 2016 6.0 4.4 5.8 (2.5) 222.3 236.0
------------ ------------ ------------ ------------- ------------ ----------
The Board has proposed an interim dividend of GBP1.6m in respect
of the period ended 30 September 2016 (2015: GBP1.6m). This
dividend will be used to pay the intercompany loan interest due
from Bristol Water Holdings UK Limited.
CASH FLOW STATEMENT
For the six months ended 30 September 2016
Six months to Six months to Year to
30 September 30 September 31 March
2016 2015 2016
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Cashflows from operating activities
Profit before taxation 12.5 12.9 27.8
Adjustments for:
Depreciation, net of amortisation of deferred
income 6 8.5 8.6 17.2
Amortisation of intangibles 6 1.0 1.0 2.0
Difference between pension charges and normal
contributions 0.3 - (2.9)
Interest income 7 (2.1) (2.0) (4.2)
Interest expense 7 7.0 6.3 14.0
Pension interest income 7 (0.8) (0.7) (1.5)
(Increase) / decrease in trade and other
receivables (3.2) 3.1 4.5
Decrease in trade and other creditors and
provisions (2.2) (2.0) (5.6)
Additional contributions to pension scheme (0.1) (0.2) (0.4)
-------------- -------------- -----------
Cash generated from operations 20.9 27.0 50.9
Interest paid (5.9) (5.8) (11.6)
Corporation taxes paid 0.7 (1.6) (2.2)
Net cash inflows from operating activities 15.7 19.6 37.1
-------------- -------------- -----------
Cash flows from investing activities
Purchase of property plant and equipment (16.4) (20.4) (33.5)
Contributions received 2.1 1.8 4.2
Proceeds from sale of fixed assets - 0.1 0.1
Interest received 2.1 2.0 4.2
Net cash used in investing activities (12.2) (16.5) (25.0)
-------------- --------------- ----------
Cash flows from financing activities
Proceeds from long-term borrowings - - -
Repayment of long-term borrowings - - -
Payment of finance lease liabilities (0.4) (0.3) (0.3)
Preference dividends paid (0.5) (0.5) (1.1)
Equity dividends paid (2.6) (1.6) (3.2)
Net cash used in financing activities (3.5) (2.4) (4.6)
-------------- --------------- ----------
Net increase in cash and cash equivalents - 0.7 7.5
Cash and cash equivalents, beginning of period 18.0 10.5 10.5
Cash and cash equivalents, end of period 16 18.0 11.2 18.0
============== =============== ==========
NOTES TO THE INTERIM ACCOUNTS
For the six months ended 30 September 2016
1 General Information
Bristol Water plc ("the company") is one of eight regulated Water only supply companies ("WOCs")
in England and Wales. The company is the licensed monopoly provider of water services in the
Bristol area, and as such is regulated by the Water Services Regulation Authority - Ofwat.
The company is incorporated and domiciled in the UK. The address of its registered office
is Bridgwater Road, Bristol.
2 Basis of preparation
The financial information contained in this interim announcement does not constitute statutory
accounts within the meaning of section 435 of the Companies Act 2006.The interim accounts,
which have not been audited but have been reviewed by the Company's auditors, have been prepared
in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" issued by
the Financial Reporting Council and the Disclosure Rules and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
The Company has adopted FRS 101 "Reduced disclosure framework - Disclosure exemptions from
EU-adopted IFRS for qualifying entities".
3 Accounting policies
The following are the significant accounting policies applied by the Company in preparing
these interim accounts:
3.1 Going concern
The company meets its day-to-day working capital requirements through its cash reserves and
borrowings. The company's forecasts and projections show that the company should be able to
operate within the level of its current cash reserves and borrowing facilities. After making
enquiries, the directors have a reasonable expectation that the company has adequate resources
to continue in operational existence for the foreseeable future. The company therefore continues
to adopt the going concern basis in preparing its financial statements. Further information
on the company's borrowings is given in notes 3.13 and 12.
3.2 Revenue
Revenue comprises charges to customers for water and other services, exclusive of VAT.
Revenue from metered water supply is based on water consumption, and is recognised upon delivery
of water. Revenue from metered water supply includes an estimate of the water consumption
for customers whose meters were not read at the reporting date. The estimate covers the period
between the last meter reading and the reporting dates and is recorded within accrued income.
Revenue from unmetered water supply is based on either the rateable value of the property
or on an assessed volume of water supplied, and is recognised over the period to which the
bill relates.
Revenue from other services is recognised upon completion of the related services.
3.3 Property, plant and equipment and depreciation
Tangible assets are stated at historic purchase cost less accumulated depreciation and comprise
infrastructure assets and other assets.
The cost of assets includes their purchase cost together with incidental expenses of acquisition
and any directly attributable labour costs which are incremental to the Company.
Capitalisation of borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use
are capitalised as part of the cost of the respective assets. All other borrowing costs are
expensed in the period they occur. Borrowing costs consist of interest and other costs that
an entity incurs in connection with the borrowing of funds. Borrowing costs are capitalised
using a weighted average interest rate of applicable borrowings.
3 Accounting policies (continued)
3.3 Property, plant and equipment and depreciation (continued)
Depreciation
Depreciation is charged, where appropriate, on a straight-line basis on the original cost
of assets over their expected economic lives. Freehold land is not depreciated. Depreciation
of long-life assets commences when the assets are brought into use.
Assets are depreciated after commissioning over the following estimated economic lives:
Infrastructure assets 23 to 213 years
Operational properties and structures 3 to 100 years
Plant and equipment comprising:
Treatment, pumping and general plant 2 to 30 years
Computer hardware, software, communications, meters and telemetry equipment 4 to 15 years
Vehicles and mobile plant 4 to 7 years
Assets under construction are not depreciated.
The assets' remaining useful lives are reviewed periodically and adjusted prospectively, where
appropriate.
Impairment
The values of fixed assets are reviewed annually to determine whether their carrying amounts
exceed their fair values in use. Where such an excess is believed to exist it is treated as
an impairment loss and charged to the Income Statement.
Disposal
An asset is derecognised upon disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the Income Statement when the asset is derecognised.
3.4 Intangible assets
Intangible assets acquired separately are measured on initial recognition as cost. Internally
generated intangible assets, excluding capitalised development costs, are not capitalised
and expenditure is reflected in the income statement in the year which the expenditure is
incurred.
Assets are depreciated after commissioning over the following estimated economic lives:
Computer software 3 to 10 years
Assets under construction are not amortised
Intangible assets with finite lives are amortised over their useful lives and assessed for
impairment whenever there is an indication that the intangible asset may be impaired. The
amortisation period and the amortisation method for an intangible asset with a finite life
is reviewed at least at the end of each reporting period. Changes in the expected useful life
or the expected pattern of consumption of future economic benefits embodied in the asset is
accounted for by changing the amortisation period or method, as appropriate, and are treated
as changes in accounting estimates.
Disposal
An asset is derecognised upon disposal or when no future economic benefits are expected from
its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as
the difference between the net disposal proceeds and the carrying amount of the asset) is
included in the Income Statement when the asset is derecognised.
3.5 Grants and contributions
Grants and contributions received in respect of network and other assets are recognised in
line with the provisions of International Financial Reporting Interpretations Committee ("IFRIC")
18: Transfer of Assets from Customers.
Contributions are shown within deferred income on the Statement of Financial Position and
the related amortisation is recognised in the Income Statement over the useful life of the
relevant assets.
Grants and contributions in respect of expenditure charged to the Income Statement are recognised
when the related rechargeable expenditure is incurred.
3 Accounting policies (continued)
3.6 Pension costs
The Company operates both defined benefit and defined contribution pension arrangements. Defined
benefit pension arrangements are provided through the Company's membership of the Water Companies'
Pension Scheme (WCPS) via a separate section.
Defined benefit scheme
Defined benefit scheme liabilities are measured by an independent actuary using the projected
unit method and discounted at the current rate of return on high quality corporate bonds of
equivalent term and currency to the liability. The costs of running the Scheme in the period
is charged to operating profit.
Past service costs are recognised in profit or loss on a straight-line basis over the vesting
period or immediately if the benefits have vested. Past service costs arising on a plan settlement
or a curtailment are included immediately within operating costs.
The amount charged or credited to finance costs is a net interest amount calculated applying
the liability discount rate to the net defined benefit liability or asset.
Actuarial gains and losses arising from experience adjustments, changes in actuarial assumptions
and amendments to pension plans are immediately recognised in the period in which they occur
in other comprehensive income.
Defined contribution schemes
Costs of defined contribution pension schemes are charged to the Income Statement in the period
in which they fall due. Administration costs of defined contribution schemes are borne by
the Company.
3.7 Research and development
Research and development expenditure is charged to the Income Statement as incurred. Development
expenditure is not capitalised as it does not meet the criteria of IAS 38.
3.8 Distributions to shareholders
Dividends and other distributions to shareholders are reflected in financial statements when
approved by shareholders in a general meeting, except for interim dividends which are included
in financial statements when paid by the Company. Accordingly, proposed dividends are not
included as a liability in the financial statements.
3.9 Leased assets
Assets financed by leasing agreements that transfer substantially all the risks and rewards
of ownership of an asset to the lessee are capitalised and depreciated over the shorter of
their estimated useful lives and the lease term. The capital portion of the lease commitment
is included in current or non-current creditors as appropriate. The capital element of the
lease rental is deducted from the obligation to the lessor as paid. The interest element of
lease rentals and the depreciation of the relevant assets are charged to the Income Statement.
Operating lease rental payments are charged to the Income Statement as incurred over the term
of the lease.
3.10 Taxation
Current tax, including UK corporation tax, is provided at amounts expected to be paid (or
recovered) for the year, and any adjustment to tax payable or receivable in respect of the
prior years, using the tax rates and laws that have been enacted or substantively enacted
by the reporting date.
Advance Corporation Tax ("ACT") in respect of dividends in previous years is written off to
the Income Statement unless it can be recovered against mainstream corporation tax in the
financial year or with reasonable assurance in the future. Credit is taken for ACT previously
written off when it is recovered against mainstream corporation tax liabilities.
Deferred tax is recognised in respect of all timing temporary differences arising between
the carrying amount of assets for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax assets are recognised to the extent that it is probable that taxable
profit will be available against which the deductible temporary differences, carried forward
tax credits or tax losses can be utilised.
Deferred tax assets and liabilities are measured on an undiscounted basis at the tax rates
that are expected to apply when the related asset is realised or liability is settled, based
on tax rates and laws enacted or substantively enacted at the reporting date.
The carrying amount of deferred tax assets is reviewed at each reporting date. Deferred tax
assets and liabilities are offset only if a legal enforcement right exists to that effect,
the deferred taxes relate to the same taxation authority and that authority permits the Company
to make a single net payment.
Tax is charged or credited to other comprehensive income if it relates to items that are charged
or credited to other comprehensive income. Similarly, tax is charged or credited directly
to equity if it relates to items that are credited or charged directly to equity. Otherwise
tax is recognised in the Income Statement.
3 Accounting policies (continued)
3.11 Cash and cash equivalents
Cash and cash equivalents in the Statement of Finanical Position comprise cash at banks and
on hand and short-term deposits with a maturity of three months or less.
For the purpose of the Cash Flow Statement, cash and cash equivalents consist of cash and
short-term deposits defined above, net of outstanding bank overdrafts.
3.12 Inventory
Inventory is valued at the lower of cost and net realisable value. Inventory valuation is
determined using the weighted average cost method. Following established practice in the
water
industry, no value is included in the financial statements for water held in store.
3.13 Financial instruments
Borrowings are recognised initially at fair value, net of transaction costs incurred.
Borrowings
are subsequently carried at amortised costs.
The net costs of issue of loans (being expenses incurred less premiums received) where
material
are amortised over the lives of the respective loans and disclosed within net borrowings.
Immaterial amounts are written off as incurred. Index-linked loans are considered to be
effective
economic hedges and are valued at cost plus accrued indexation.
In accordance with the provisions of IAS 32, 'Financial Instruments: Presentation', and IAS
39, 'Financial Instruments: Recognition and Measurement', the Company fair values its
interest-rate
swaps on the Statement of Financial Position.
Hedge accounting
The Company documents at the inception of the transaction the relationship between hedging
instruments and hedged items, as well as its risk management objective and strategy for
undertaking
a hedge transaction. The Company also documents its assessment, both at hedge inception and
on an ongoing basis, of whether the derivatives that are used in hedging transactions are
highly effective in offsetting changes in fair value or cash flows of hedged items.
The effective portion of the swaps' fair value movements is recognised in the other
comprehensive
income. Should there be any ineffectiveness; the ineffective portion of the fair value
movements
would be recognised immediately in the Income Statement within finance charges.
Hedge accounting is discontinued when the Company revokes the hedging relationship, the
hedging
instrument expires, is terminated or exercised, or no longer qualifies for hedge
accounting.
Accordingly the cumulative gains/losses previously recognised in the Statement of
Comprehensive
Income are reclassified immediately to the Income Statement.
3.14 Provisions
A provision is recognised when the Company has a legal or constructive obligation as a
result
of past event and it is probable that an outflow of economic benefits will be required to
settle the obligation. Per the requirements of FRS 101 the deferred taxation provision is
not discounted. Other provisions are not discounted as the effect of the time value of
money
is not considered material.
3.15 Trade and other receivables
Trade and other receivables are recognised initially at fair value and subsequently
measured
at amortised cost using the effective interest method, less provision for impairment.
3.16 Creditors
Creditors are recognised initially at fair value and subsequently measured at amortised
cost
using the effective interest method.
4 Critical accounting estimates and judgments
Estimates and judgments are continually evaluated and are based on historical experience
and
other factors, including expectations of future events that are believed to be reasonable
under the circumstances
Critical accounting estimates and assumptions
The company makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. The estimates and
assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are addressed below.
Useful economic lives of property, plant and equipment
The annual depreciation charge for property, plant and equipment is sensitive to changes in
the estimated useful economic lives and residual values of the assets. These are amended
when
necessary to reflect current estimates, based on technological advancement, future
investments,
economic utilisation and the physical condition of the assets. See note 9 for the carrying
amount of the property plant and equipment and note 3.3 for the useful economic lives for
each class of assets.
Useful economic lives of intangible assets
The annual amortisation for computer software is sensitive to changes in the estimated
useful
economic lives of the assets. These are amended when necessary to reflect current
estimates,
based on technological advancement, future investments and economic utilisation. See note
10 for the carrying amount of the intangible assets and note 3.4 for the useful economic
lives
of the assets.
4 Critical accounting estimates and judgments (continued)
Impairment of trade receivables
The company makes an estimate of the recoverable value of trade and other receivables.
When
assessing impairment of trade and other receivables, management considers factors
including
the credit rating of the receivable, the aging profile of the receivables and historical
experience.
Defined benefit pension scheme
The company has an obligation to pay pension benefits to certain employees. The cost of
these
benefits and the present value of the obligation depends on a number of factors,
including;
life expectancy, asset valuations and the discount rate on corporate bonds. Management
estimates
these factors in determining the net pension obligation in the balance sheet. The
assumptions
reflect historical experience and current trends.
In March 2016 the scheme closed to future benefit accrual and as a result any surplus on
the
scheme would only be available to the company as refund rather than as a reduction in
future
contributions. Under current UK tax legislation an income tax deduction of 35% is applied
to a refund from a UK pension scheme, before it is passed to the employer which is shown
as
a restriction to the value of the net pension scheme asset.
See note 16 for the disclosures of the defined benefit pension scheme.
5 Revenue
Revenue 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.
6 Operating expenses
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Operating expenses
include -
Payroll cost, net of
recharges to fixed
assets and
including retirement
benefit costs 7.0 7.3 12.2
Depreciation and
amortisation, net of
deferred income
amortisation 9.5 9.6 19.2
7 Net interest payable and similar charges
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Interest payable and
similar charges relate to:
Bank borrowings 1.2 1.1 2.3
Term loans and debentures:
interest charges 4.7 4.7 9.4
indexation and
amortisation of
fees and premium
on loans 0.8 0.1 1.7
Finance leases - 0.1 -
Capitalisation of borrowing cost (0.2) (0.2) (0.5)
Dividends on 8.75%
irredeemable cumulative
preference shares 0.5 0.5 1.1
------------------- --------------------- ----------------
7.0 6.3 14.0
Less interest receivable
and similar income:
Interest income in respect
of retirement
benefit scheme (0.8) (0.7) (1.5)
Loan to Bristol Water
Holdings UK Ltd - interest
receivable (2.0) (2.0) (4.0)
Other external investments and
deposits income (0.1) - (0.2)
------------------- --------------------- ----------------
(2.9) (2.7) (5.7)
Total net interest payable and
similar charges 4.1 3.6 8.3
------------------- --------------------- ----------------
7 Net interest payable and similar charges (continued)
The rate used to determine the amount of borrowing costs eligible for capitalisation was 4.7%
(30 September 2015: 4.3%), which is the weighted average interest rate of applicable borrowings
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
IAS 39 "Financial Instruments - Recognition and Measurement".
8 Taxation Six months to Six months to Year to
30 September 30 September 31 March 2016
2016 2015
(unaudited) (unaudited)
GBPm GBPm GBPm
Tax expense included in Income Statement
Current tax:
Corporation tax on profits for the year 1.7 2.8 2.1
Adjustment in respect of prior period 0.1 (0.4) (0.6)
-------------- -------------- ---------------
Total current tax 1.8 2.4 1.5
Deferred tax:
Origination and reversal of timing differences 0.7 0.1 3.8
Adjustment to prior periods (0.1) 0.2 0.4
Effect of change in rate (3.3) - (6.5)
-------------- -------------- ---------------
Total deferred tax (2.7) 0.3 (2.3)
Tax on profit on ordinary activities (0.9) 2.7 (0.8)
-------------- -------------- ---------------
Tax income / expense income included in other
comprehensive income
Current tax:
On defined benefit plan - - (1.1)
In respect of prior periods 0.1 - -
Deferred tax:
Remeasurement of post employment benefit liability (0.1) (1.3) (0.9)
Remeasurement of swap liability (0.2) - (0.1)
Effect of corporation tax change in rate - - (0.9)
Effect of pension change in rate - - 9.8
-------------- -------------- ---------------
Total tax (income) / expense included in other
comprehensive income (0.2) (1.3) 6.8
-------------- -------------- ---------------
9 Property, plant and equipment
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Net book value, beginning of period 556.6 546.0 546.0
Additions 13.5 16.1 29.6
Disposals - - (0.1)
Depreciation charge for the period (9.4) (9.5) (18.9)
Net book value, end of period 560.7 552.6 556.6
------------------- ------------------- ---------------
The net book value of property, plant and equipment includes GBP4.9m (30 September 2015: GBP4.4m)
of borrowing costs capitalised in accordance with IAS 23. During the six months ended 30 September
2016 GBP0.2m was capitalised using 4.7% prorated annual capitalisation rate (30 September
2015 GBP0.2m, 4.4%).
10 Intangible assets
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Net book value, beginning of
period 5.0 6.5 6.5
Additions 0.9 0.2 0.5
Disposals - - -
Depreciation charge for the period (1.0) (1.0) (2.0)
Net book value, end of period 4.9 5.7 5.0
------------------- ------------------- ---------------
11 Earnings per ordinary share
At At At
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
m m m
Basic earnings per ordinary share
have been calculated as follows -
Earnings attributable to ordinary GBP13.4 GBP10.2 GBP28.6
shares
Weighted average number of
ordinary shares 6.0 6.0 6.0
As the Company has no obligation to issue further shares, disclosure of earnings per share
on a fully diluted basis is not relevant.
12 Net borrowings
At At At
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Net borrowings comprise -
Debt due after one year, excluding
8.75%
irredeemable cumulative preference
shares 309.8 306.2 308.4
Current portion of borrowings 0.4 0.4 0.4
310.2 306.6 308.8
Cash and cash equivalents (18.0) (11.2) (18.0)
-------------------- -------------------- ---------------
Net borrowings excluding 8.75%
irredeemable
cumulative preference shares 292.2 295.4 290.8
8.75% irredeemable cumulative
preference shares 12.5 12.5 12.5
Net borrowings 304.7 307.9 303.3
-------------------- -------------------- ---------------
Borrowing facilities
The Company currently has unutilised borrowing facilities of GBP70m, of which GBP50m expires
in August 2017. On 2 December 2016 the Company entered into new credit facilities of GBP15m
with an expiry date of 7 Dec 2019 and GBP35m with a maturity date of 7 Dec 2021 to replace
the expiring GBP50m facility.
13. FINANCIAL RISK MANAGEMENT
Financial risk factors
The Company's main financial instruments comprise:
* borrowings and cash;
* 8.75% irredeemable cumulative preference shares;
* various items, such as trade receivables and trade
creditors, that arise directly from its operations;
and
* two long-term loans made to Bristol Water Holdings UK
Limited.
The Company has also entered into interest rate swaps to manage the interest rate risk arising
from its sources of finance. It is the Company's policy not to trade in financial instruments.
The Company's significant debt financing exposes it to a variety of financial risks that include
the effect of changes in debt market prices, credit risks, liquidity and interest rates. The
Company has in place a risk management programme that seeks to limit the adverse effects on
the financial performance of the Company.
The Board is responsible for setting the financial risk management policies applied by the
Company. The policies are implemented by the finance department. The finance department has
a policies and procedures manual that sets out specific guidelines to manage interest rate
risk, credit risk and the use of financial instruments to manage these risks.
(a) Interest rate risk of financial assets
The financial assets include cash at bank and cash deposits which are all denominated in sterling.
During the year cash and cash deposits were placed with banks for either a fixed term or repayable
on demand earning interest at market rates. There are also interest-bearing fixed rate loans
totaling GBP68.5m (2015/16: GBP68.5m) to Bristol Water Holdings UK Limited.
(b) Interest rate risk and inflation risk of financial liabilities
The financial liabilities consist of interest-bearing loans, debentures, finance leases and
8.75% irredeemable cumulative preference shares. The Company uses interest-rate swaps as hedging
instruments to hedge cash flows in respect of future interest payments, which has the effect
of increasing the proportion of fixed interest debt.
The Company's practice is to maintain the majority of its net debt on a fixed or a fixed margin
above movements in RPI basis. At the period-end 39%* (2015/16: 40%**) of the Company's gross
financial liabilities, excluding the 8.75% irredeemable cumulative preference shares, were
at fixed rates. 95% (2015/16: 96%) of the Company's gross financial liabilities, excluding
the 8.75% irredeemable cumulative preference shares, were at fixed or index-linked rates.
The residues were at floating rates.
The Company's current intention is to maintain a future interest rate management profile consisting
of financial liabilities at either fixed or index-linked rates amounting to 70% or more of
such liabilities. The balance between fixed or index-linked, and floating interest rate liabilities
will be kept under review, and is dependent on the availability of such resources in the financial
markets.
The carrying value of the Company's index-linked borrowings is exposed to changes in RPI.
The Company's RCV and water charges are also linked to RPI. Accordingly index-linked debt
partially hedges the exposure to changes in RPI and delivers a cash flow benefit, as compensation
for the indexation is provided through adjustment to the principal rather than in cash.
* Variable interest rate loans totalling GBP60m, covered by interest rate swaps, have been
considered as fixed interest rate loans for the calculation of this percentage.
** Variable interest rate loan totalling GBP10m, covered by interest rate swap, was considered
as fixed interest rate loan for the calculation of this percentage.
(c) Credit risk
The Company is required by the Water Industry Act 1991 to supply water to all potential customers
in its licensed area. In the event of non-payment by commercial customers, but not domestic
customers, the Company has a right of disconnection. For all customers the Company has implemented
policies and procedures designed to assess the risk of further non-payment and recoup debts.
Under the terms of the STID, cash at bank and cash deposits are placed with banks with a minimum
of Moody's P-1 and Standard & Poors A-1 credit ratings.
There is no collateral held as security in respect of the above financial assets.
(d) Liquidity risk
It is the Company policy to maintain continuity of funding. At the period end 77% (2015/16:
76%) of its financial liabilities, including 8.75% irredeemable cumulative preference shares,
mature after five years or are irredeemable.
The Company actively maintains a mixture of long-term and short-term committed facilities
that are designed to provide sufficient funds for operations.
The Company has a GBP20m facility expiring in December 2019, and a GBP50m facility expiring
in August 2017. Both the facilities are floating rate and incur non-utilisation fees at market
rates. On 2 December 2016 the Company entered into new credit facilities of GBP15m with an
expiry date of 7 Dec 2019 and GBP35m with a maturity date of 7 Dec 2021 to replace the expiring
GBP50m facility.
Under the terms of the STID the Company is required to maintain sufficient funds in a nominated
account to cover estimated debt service payments arising during the following year. These
funds, currently amounting to approximately GBP5.4m (2015/16: GBP5.4m), are therefore not
available for other operational use or distribution to shareholders.
Derivative financial instruments and hedge accounting
The Company has entered into two interest rate swaps with notional values of GBP10m and GBP50m.
These were effective from 22 October 2008 and 3 December 2014 respectively. The Company uses
interest-rate swaps as hedging instruments to hedge cash flows in respect of future interest
payments, and accordingly hedge accounting is applied as mentioned in note 3.13.
(e) Covenants compliance risk
Under the terms of its principal debt agreements the Company is required to comply with covenants
relating to minimum levels of interest cover and to maximum levels of net debt in relation
to regulatory capital value. Failure to comply may result in various restrictions being imposed
upon the Company. Risk is minimised through continuous monitoring of the relevant ratios in
both emerging and forecast results, and by close control of operating cash flows and capital
investment programmes.
Fair value of financial assets and liabilities measured at amortised cost.
The fair value of borrowings are as follows:
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Non-current 488.9 415.1 415.8
Current 0.4 0.4 0.4
-------------------- ------------------- -------------------
489.3 415.5 416.2
-------------------- ------------------- -------------------
14 Deferred Income
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Net book value, beginning of period 71.7 69.2 69.2
Additions 2.1 1.9 4.2
Amortisation charge for the period (0.9) (0.9) (1.7)
Net book value, end of period 72.9 70.2 71.7
------------------- ------------------- ---------------
Current 1.7 1.7 1.7
Non-current 71.2 68.5 70.0
------------------- ------------------- ---------------
72.9 70.2 71.7
------------------- ------------------- ---------------
15 Provision for liabilities
At At At
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Provision for deferred tax 55.9 76.4 58.9
Provision for staff redundancies - 0.9 0.2
------------------- ------------------- ---------------
55.9 77.3 59.1
------------------- ------------------- ---------------
Provision for deferred tax
comprises:
Accelerated capital allowances
and capital element of finance
leases 60.9 71.3 64.0
Deferred income (4.5) (5.2) (4.7)
Short-term timing differences - (0.1) -
Retirement benefit obligations - 10.7 -
Interest rate swaps (0.5) (0.3) (0.4)
------------------- ------------------- ---------------
55.9 76.4 58.9
------------------- ------------------- ---------------
16 Retirement benefits
Pension arrangements for the Company's employees are partly provided through the Company's
membership of the Water Companies' Pension Scheme ("WCPS"), which provides defined benefits
based on final pensionable pay. The Company's membership of WCPS is through a separate section
of the scheme. The assets of the section are held separately from those of the Company and
are invested by discretionary fund managers appointed by the trustees of the scheme. The section
has been closed to new entrants and all new eligible employees are offered membership of a
stakeholder pension scheme.
In addition to providing benefits to employees and ex-employees of Bristol Water plc, the
section provides benefits to former Bristol Water plc employees who transferred to Bristol
Wessex Billing Services Ltd. The majority of the section assets and liabilities relate to
Bristol Water plc employees and ex-employees. The financial position of the section is determined
by an independent actuary (Lane, Clark & Peacock LLP).
The latest triennial valuation of the pension scheme was completed as at 31 March 2014. The
total deficit as at 31 March 2014 measured on a long-term scheme funding basis was GBP2.8m,
representing a funding level of 98.4%.
An updated estimate of the scheme's funding position at 31 March 2015 indicated a funding
surplus of GBP3.2m. The improvement in the funding position since the triennial valuation
at 31 March 2014 reflects primarily higher than expected asset returns, lower than expected
inflationary pension increases and deficit contributions paid over the year, largely offset
by the reduction in the real yields available on long-dated gilts (which serves to increase
the technical provisions).
The funding surplus of GBP3.2m and the accounting surplus of GBP48.7m are not comparable because:
* the approach for valuation of scheme liabilities is
significantly different between the two valuation
methods and
* the funding surplus is based on a position at 31
March 2015 and the accounting surplus is based on a
position at 30 September 2016.
Pension assets and liabilities are recognised in the accounts in accordance with IAS 19 'Employee
benefits' as disclosed in note 3.6.
In summary, assets and liabilities under IAS 19 were:
At At At
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Fair value of section assets 240.5 205.0 209.2
Present value of liabilities (191.8) (151.8) (160.2)
------------------- ------------------- ---------------
Surplus in the section 48.7 53.2 49.0
Less: restriction of surplus (17.0) - (17.1)
Net pension asset on IAS 19 basis 31.7 53.2 31.9
------------------- ------------------- ---------------
17 Supplementary cash flow information
For the purpose of the statement of cash flow, cash and cash equivalents comprise the following:
Six months to Six months to Year to
30 September 2016 30 September 2015 31 March 2016
(unaudited) (unaudited)
GBPm GBPm GBPm
Cash and cash equivalents 18.0 11.2 18.0
18.0 11.2 18.0
18 Commitments
Capital commitments at 30 September 2016 contracted
for but not provided were GBP6.9m (2015: GBP5.9m)
19 Ultimate parent company and controlling party
At the balance sheet date the immediate parent
company was Bristol Water Core Holdings Limited,
a company incorporated in England and Wales.
The ultimate parent company and controlling party
was considered by the directors to be iCON Infrastructure
Partners III, LP, a company incorporated in Guernsey
The group in which this company is consolidated
is Capstone Infrastructure Corporation and copies
of its consolidated annual report are available
from 155 Wellington Street West, Suite 2930 Toronto,
ON M5V 3H1, Canada.
20 Related party transactions
During the six months to 30 September 2016 the
Company spent GBP1.8m (2015: GBP1.6m) on purchase
of customer related services from BWBSL, a joint
venture company between Bristol Water Holdings
Limited and Wessex Water Services Limited. At
30 September 2016 GBP1.4m (2015: GBP0.8m) was
receivable from BWBSL and GBP1.5m (GBP1.4m) was
payable to BWBSL.
21 Events after the end of the reporting period
On 14 November 2016 iCON Infrastructure agreed
to purchase Agbar's 30% stake in Bristol Water
which will take effect on 15 December 2016.
22 Circulation
This interim announcement is available on the
Bristol Water web site: http://www.bristolwater.co.uk.
Paper copies are also available from the Company's
registered office at Bridgwater Road, Bristol,
BS13 7AT.
Bristol Water plc - Interim Accounts
DIRECTORS' RESPONSIBILITIES FOR THE PREPARATION OF INTERIM
ACCOUNTS
The directors' confirm that these condensed interim financial
statements have been prepared in accordance with FRS104 'Interim
Financial Reporting', and that the interim management report
includes a fair review of the information required by DTR 4.2.7 and
DTR 4.2.8, namely:
-- an indication of important events that have occurred during
the first six months and their impact on the condensed set of
financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
-- material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
The directors of Bristol Water Plc are listed in the Bristol
Water Plc Annual Report for 31 March 2016. A list of current
directors is maintained on the Bristol Water plc website:
www.bristolwater.co.uk
Going concern
The directors have a reasonable expectation that the Company has
adequate resources available to it to continue in operational
existence for the foreseeable future and have therefore continued
to adopt the going concern policy in preparing the interim
accounts. This conclusion is based upon, amongst other matters, a
review of the Company's financial projections together with a
review of the GBP18.0m cash and GBP70m unutilised committed
borrowing facilities available to the Company as well as
consideration of the Company's capital adequacy.
By order of the Board
S C Robson
Secretary
2 December 2016
Independent review report to Bristol Water plc
Report on the interim financial statements
Our conclusion
We have reviewed Bristol Water plc's interim financial
statements (the "interim financial statements") in the interim
results of Bristol Water plc for the 6 month period ended 30
September 2016. Based on our review, nothing has come to our
attention that causes us to believe that the interim financial
statements are not prepared, in all material respects, in
accordance with FRS 104 "Interim Financial Reporting" issued by the
Financial Reporting Council and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
What we have reviewed
The interim financial statements comprise:
the statement of financial position as at 30 September 2016;
the income statement and statement of comprehensive income for
the period then ended;
the cash flow statement for the period then ended;
the statement of changes in equity for the period then ended;
and
the explanatory notes to the interim financial statements.
The interim financial statements included in the interim results
have been prepared in accordance with FRS 104 "Interim Financial
Reporting" issued by the Financial Reporting Council and the
Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 2 to the interim financial statements, the
financial reporting framework that has been applied in the
preparation of the full annual financial statements of the Company
is applicable law and United Kingdom Accounting Standards (UK
Generally Accepted Accounting Practice), including FRS 101 "Reduced
disclosure framework-Disclosure exemptions from EU-adopted IFRS for
qualifying entities" .
Responsibilities for the interim financial statements and the
review
Our responsibilities and those of the directors
The interim results, including the interim financial statements,
is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the interim financial
statements in accordance with the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial
Conduct Authority.
Our responsibility is to express a conclusion on the interim
financial statements in the interim financial statements based on
our review. This report, including the conclusion, has been
prepared for and only for the company for the purpose of complying
with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other
purpose. We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom
this report is shown or into whose hands it may come save where
expressly agreed by our prior consent in writing.
What a review of interim financial statements involves
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410, 'Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity' issued by the Auditing Practices Board for use in
the United Kingdom. A review of interim financial information
consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures.
A review is substantially less in scope than an audit conducted
in accordance with International Standards on Auditing (UK and
Ireland) and, consequently, does not enable us to obtain assurance
that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit
opinion.
We have read the other information contained in the interim
financial statements and considered whether it contains any
apparent misstatements or material inconsistencies with the
information in the interim results.
PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
2 December 2016
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR QELFBQLFBFBX
(END) Dow Jones Newswires
December 05, 2016 11:09 ET (16:09 GMT)
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
