TIDM80UC
RNS Number : 3746L
Connect M77/GSO
29 July 2011
Connect M77/GSO plc
Report and financial statements for the year ended 31 March
2011
Registered Number: 04698798
Directors' Report
The Directors present their report together with the audited
financial statements for the year ended 31 March 2011.
Principal Activity and Business Review
On 7 May 2003 a contract was signed with East Renfrewshire
Council (on behalf of the Scottish Government for the M77 and South
Lanarkshire Council and East Renfrewshire Council for the Glasgow
Southern Orbital (GSO)) to design, build, finance and operate
(DBFO) the M77 from Fenwick to Malletsheugh and the GSO from
Malletsheugh to Philipshill, East Kilbride and sections of the A726
and to maintain these roads under a licence over a 32 year period
as well as modify certain sections of the A77. In accordance with
the concession agreement the Company is responsible for operating
the roads together with carrying out all of the routine and major
life cycle maintenance for the life of the concession.
The new road sections were opened to the public in April 2005
and the final completion certificate was issued in September
2005.
There have been no changes to the Company's activities in the
year under review and none are currently contemplated.
The Company's operating profit and its loss on ordinary
activities after taxation are in line with expectations, accounting
for a second year of severe winter weather.
Going Concern
The Company's forecasts and projections, taking account of
reasonable possible changes in trading performance, show that the
Company has adequate resources to continue in operational existence
for the foreseeable future. Accordingly, the Directors continue to
adopt the going concern basis in preparing the financial statements
(see note 1 to the financial statements).
Share Capital
The issued share capital of the Company was GBP50,000 at 31
March 2011 and 31 March 2010, which consisted of 50,000 ordinary
shares of GBP1 each.
Results and Dividends
The Company recorded a loss for the year after taxation of
GBP7,379,000 (2010 - loss GBP4,725,000). The Directors do not
propose to pay a dividend in respect of the year ended 31 March
2011 (2010 - GBPnil).
Principal Risks and Uncertainties
The Company recognises that effective risk management is
fundamental to achieving its business objectives in order to meet
its commitments in fulfilling the Public Private Partnership
("PPP") contract and in delivering a safe and efficient service.
Risk management contributes to the success of the business by
identifying opportunities and anticipating risks in order to enable
the business to improve performance and fulfil its contractual
obligations.
Financial instruments
The financial risk management objectives of the Company are to
ensure that financial risks are mitigated by the use of financial
instruments where they cannot be addressed by means of contractual
provisions. Financial instruments are not used for speculative
purposes.
Credit and cash flow risks to the Company arise from its client,
East Renfrewshire Council. The credit and cash flow risks are not
considered significant as the client is a quasi governmental
organisation.
Directors' Report (continued)
For the year ended 31 March 2011
Financial instruments (continued)
The Company's liquidity risk is principally managed through
financing the Company by means of long term borrowings with an
amortisation profile that matches the expected availability of
funds from the Company's operating activities. All borrowings are
in the form of secured bonds issued at a fixed rate of interest of
5.404% per annum and secured loan stock issued at a fixed rate of
interest of 12.1% per annum. In addition the Company maintains
reserve bank accounts to provide short term liquidity against
future debt service and other expenditure requirements.
Contractual relationships
The Company operates within a contractual relationship with its
primary customer East Renfrewshire Council. A significant
impairment of this relationship could have a direct and detrimental
effect on the Company's results and could ultimately result in
termination of the concession. To manage this risk the Company has
regular meetings with East Renfrewshire Council including
discussions on performance, project progress, future plans and
customer requirements.
Key Performance Indicators
The Company has set specific business objectives, which are
monitored using a number of key performance indicators ("KPIs").
The relevant KPIs for this report are detailed below:
31 March 2011 31 March 2010
GBP'000 GBP'000
Loss after taxation (7,379) (4,725)
Net liabilities (27,711) (20,332)
The Directors consider that these KPIs are in line with
expectations.
Directors
The following persons were Directors of the Company throughout
the year, except as noted:
A C Beauchamp
D W Bowler
A Matthews
B R Walker
Payment to Suppliers
The Company agrees terms and conditions for its business
transactions with suppliers. Payment is then made to these terms,
subject to the terms and conditions being met by the suppliers. As
at 31 March 2011 creditor days for the Company amounted to 31 days
(2010 - 30 days).
Directors' Report (continued)
For the year ended 31 March 2011
Auditor
Each of the persons who is a Director at the date of approval of
the report confirms that:
i) so far as the Director is aware, there is no relevant audit
information of which the Company's auditor is unaware; and
ii) the Director has taken all the steps that he ought to have
taken as a Director in order to make himself aware of any relevant
audit information and to establish that the Company's auditor is
aware of that information.
This confirmation is given and should be interpreted in
accordance with the provisions of S418 of the Companies Act
2006.
A resolution to re-appoint Deloitte LLP as auditor will be
proposed at the forthcoming Annual General Meeting.
Approved by the Board and signed on its behalf by:
6(th) Floor
350 Euston Road
Regent's Place
London
NW1 3AX N J Marshall
Secretary
25 July 2011
Directors' Responsibilities Statement
The Directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law and
regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
have elected to prepare the financial statements in accordance with
United Kingdom Generally Accepted Accounting Practice (United
Kingdom Accounting Standards and applicable law). Under company law
the Directors must not approve the financial statements unless they
are satisfied that they give a true and fair view of the state of
affairs of the Company and of the profit or loss of the Company for
that period. In preparing these financial statements, the Directors
are required to:
-- select suitable accounting policies and then apply them
consistently;
-- make judgements and accounting estimates that are reasonable
and prudent; and
-- prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company's
transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that
the financial statements comply with the Companies Act 2006. They
are also responsible for safeguarding the assets of the Company and
hence for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included in the
Company's website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Responsibility Statement
We confirm that to the best of our knowledge:
(a) the financial statements, prepared in accordance with the
applicable set of accounting standards, give a true and fair view
of the assets, liabilities, financial position and loss of Connect
M77/GSO plc as at 31 March 2011; and
(b) the Directors' report includes a fair review of the
development and performance of the business and the financial
position of Connect M77/GSO plc, together with a description of its
principal risks and uncertainties.
Signed on behalf of the Board of Directors of Connect M77/GSO
plc on 25 July 2011:
A C Beauchamp
Director
Independent Auditor's Report to the Members of Connect M77/GSO
plc
We have audited the financial statements of Connect M77/GSO plc
for the year ended 31 March 2011 which comprise the profit and loss
account, the balance sheet and the related notes 1 to 18. The
financial reporting framework that has been applied in their
preparation is applicable law and United Kingdom Accounting
Standards (United Kingdom Generally Accepted Accounting
Practice).
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Company's members those matters we are required to state to them in
an auditor's report and for no other purpose. To the fullest extent
permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company's members as a body,
for our audit work, for this report, or for the opinions we have
formed.
Respective responsibilities of Directors and Auditor
As explained more fully in the Directors' Responsibilities
Statement, the Directors are responsible for the preparation of the
financial statements and for being satisfied that they give a true
and fair view. Our responsibility is to audit and express an
opinion on the financial statements in accordance with applicable
law and International Standards on Auditing (UK and Ireland). Those
standards require us to comply with the Auditing Practices Board's
Ethical Standards for Auditors.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and
disclosures in the financial statements sufficient to give
reasonable assurance that the financial statements are free from
material misstatement, whether caused by fraud or error. This
includes an assessment of: whether the accounting policies are
appropriate to the Company's circumstances and have been
consistently applied and adequately disclosed; the reasonableness
of significant accounting estimates made by the Directors; and the
overall presentation of the financial statements. In addition, we
read all the financial and non-financial information in the annual
report to identify material inconsistencies with the audited
financial statements. If we become aware of any apparent material
misstatements or inconsistencies we consider the implications for
our report.
Opinion on financial statements
In our opinion the financial statements:
-- give a true and fair view of the state of the Company's
affairs as at 31 March 2011 and of its loss for the year then
ended;
-- have been properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice; and
-- have been prepared in accordance with the requirements of the
Companies Act 2006.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report
for the financial year for which the financial statements are
prepared is consistent with the financial statements.
Independent Auditor's Report to the Members of Connect M77/GSO
plc (continued)
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters
where the Companies Act 2006 requires us to report to you if, in
our opinion:
-- adequate accounting records have not been kept, or returns
adequate for our audit have not been received from branches not
visited by us; or
-- the financial statements are not in agreement with the
accounting records and returns; or
-- certain disclosures of directors' remuneration specified by
law are not made; or
-- we have not received all the information and explanations we
require for our audit.
Makhan Chahal (Senior Statutory Auditor)
for and on behalf of Deloitte LLP
Chartered Accountants and Statutory Auditors
London, United Kingdom
July 2011
Profit and Loss Account
For the year ended 31 March 2011
2011 2010
Notes GBP'000 GBP'000
Turnover 2 12,356 12,264
Cost of sales (9,428) (6,630)
--------- ---------
Gross profit 2,928 5,634
Administrative expenses (307) (315)
--------- ---------
Operating profit 3 2,621 5,319
Interest receivable and similar
income 4 79 102
Interest payable and similar
charges 5 (10,820) (10,719)
--------- ---------
Loss on ordinary activities before
taxation (8,120) (5,298)
Tax credit on loss on ordinary
activities 6 741 573
--------- ---------
Loss on ordinary activities after
taxation and retained for the 14,
financial year 15 (7,379) (4,725)
--------- ---------
There were no recognised gains or losses in either year other
than the reported loss shown above; consequently no separate
statement of total recognised gains and losses is presented.
All activities are from continuing operations in the United
Kingdom.
Balance Sheet
31 March 2011
2011 2010
Notes GBP'000 GBP'000
Fixed assets
Tangible assets 7 125,854 133,360
---------- ----------
Current assets
Debtors
- due within one year 8 2,116 1,836
- due after one year 8 2,093 2,058
Investments - due within one
year 9 7,105 7,050
Cash at bank and in hand 2,874 2,048
---------- ----------
14,188 12,992
Creditors: amounts falling due
within one year 10 (8,360) (6,270)
---------- ----------
Net current assets 5,828 6,722
---------- ----------
Total assets less current liabilities 131,682 140,082
---------- ----------
Creditors: amounts falling due
after more than one year 11 (159,393) (160,414)
---------- ----------
Net liabilities (27,711) (20,332)
---------- ----------
Capital and reserves
Called up share capital 13 50 50
Profit and loss account 14 (27,761) (20,382)
Shareholders' deficit 15 (27,711) (20,332)
---------- ----------
These financial statements for Connect M77/GSO plc, company
registration number 04698798, were approved by the Board of
Directors on 25 July 2011 and signed on its behalf by:
A C Beauchamp
Director
Notes to the accounts
For the year ended 31 March 2011
1 Accounting policies
A summary of the principal accounting policies of the Company,
all of which have been applied consistently during the year and the
preceding year, is set out below:
a) Basis of preparation
The financial statements have been prepared under the historical
cost convention and in accordance with applicable United Kingdom
law and accounting standards. They include the results of the
activities described in the Directors' Report all of which are
continuing.
FRS 29 requires disclosures and presentation of financial
instruments. The Company is a wholly owned subsidiary of Connect
M77/GSO Holdings Limited and accordingly is exempt from the
disclosures required under FRS 29 (Financial Instruments:
Disclosures) as these are detailed in the accounts of Connect
M77/GSO Holdings Limited.
b) Cash Flow Statement
The Company is exempt from the requirement of Financial
Reporting Standard No. 1 (Revised) to prepare a cash flow statement
as it is a wholly owned subsidiary of Connect M77/GSO Holdings
Limited, which prepares consolidated financial statements that
include a cash flow statement and are publicly available.
c) Turnover
Revenue is recognised as turnover as it is earned and represents
amounts due, exclusive of value added tax, in respect of services
provided under the Design, Build, Finance and Operate (DBFO)
Contract.
d) Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated
depreciation and provision for impairment.
The cost of the DBFO roads represents original cost plus
capitalised interest on finance up to the date of completion.
Depreciation of this cost is on the basis of usage over the period
of the concession to operate the road and commenced when the road
came into full use.
The carrying values of the tangible fixed assets are reviewed
annually by the Directors to determine whether there has been any
impairment to their values.
e) Taxation
Corporation tax is provided at amounts expected to be paid (or
recovered) using the tax rates and laws that have been enacted or
substantively enacted by the balance sheet date.
Deferred tax is provided in full on timing differences which
result in an obligation at the balance sheet date to pay more tax,
or a right to pay less tax, at a future date, at rates expected to
apply when they crystallise based on current tax rates and law.
Timing differences arise from the inclusion of items of income and
expenditure in taxation computations in periods different from
those in which they are included in financial statements. Deferred
tax assets are recognised to the extent that it is regarded as more
likely than not that they will be recovered. Deferred tax assets
and liabilities are not discounted.
Notes to the accounts (continued)
For the year ended 31 March 2011
1 Accounting policies (continued)
f) Finance costs
Finance costs in relation to the fixed rate senior secured bonds
are recognised at a constant rate in accordance with the carrying
value of these bonds.
g) Fixed rate senior secured bonds
Senior secured bonds are initially stated at the amount of the
net proceeds after deduction of related issue costs. The carrying
amount is increased by the finance cost in respect of the
accounting period and reduced by payments made in that period.
h) Going concern
The Company's business activities, together with the factors
likely to affect its future development, performance and position
are set out in the Directors' Report on pages 1 and 2.
The Directors have reviewed the Company's supply chain and do
not believe that any specific risk has been identified. The
Directors have also considered the ability of the client (East
Renfrewshire Council) to continue to pay unitary fees due under the
concession contract to the Company and do not consider this to be a
material risk. Despite the Company showing net liabilities and
recording a loss in the period the Company's forecasts and
projections, taking account of reasonably possible counterparty
performance, show that the Company expects to be able to continue
to operate for the full term of the concession. After making
enquiries, the Directors have a reasonable expectation that the
Company has adequate resources to continue in operational existence
for the foreseeable future. Accordingly, they continue to adopt the
going concern basis in preparing the annual report and
accounts.
2 Segmental information
Turnover
Turnover by origin and destination:
2011 2010
GBP'000 GBP'000
United Kingdom 12,356 12,264
-------- --------
All activities are from continuing operations in the United
Kingdom.
3 Operating profit
Operating profit is stated after charging:
2011 2010
GBP'000 GBP'000
Fees payable to the Company's auditor
for the audit of the Company's annual
accounts 15 15
Total audit fees 15 15
Depreciation 7,506 4,895
--------- ---------
Notes to the accounts (continued)
For the year ended 31 March 2011
3 Operating profit (continued)
Amounts payable to Deloitte LLP by the Company in respect of non
audit services were GBPnil (2010: GBPnil)
The Directors received no salary, fees or other benefits in the
performance of their duties in the current and preceding year. All
staff costs are borne by the shareholders of Connect M77/GSO
Holdings Limited who second employees to the Company and charge
related service costs. The Company had no employees during the year
(2010 - none).
4 Interest receivable and similar income 2011 2010
GBP'000 GBP'000
Bank interest receivable 79 102
-------- --------
5 Interest payable and similar charges 2011 2010
GBP'000 GBP'000
Secured bond interest 8,503 8,551
Secured loan stock interest 2,317 2,168
Total interest payable and similar charges 10,820 10,719
-------- --------
6 Tax credit on loss on ordinary activities 2011 2010
GBP'000 GBP'000
The tax credit is based on the loss for
the year and comprises:
Current year tax credit at 28% (2010: 28%) 706 538
Deferred tax credit (see note 8b) 35 35
Total tax credit on loss on ordinary activities 741 573
-------- --------
The difference between the total current tax shown above and the
amount calculated by applying the standard rate of UK corporation
tax to the loss before tax is as follows:
2011 2010
GBP'000 GBP'000
Loss on ordinary activities before tax (8,120) (5,298)
-------- --------
Tax on loss on ordinary activities at standard
UK corporation tax rate of 28% (2010: 28%) 2,274 1,483
Effects of:
Other timing differences (196) (127)
Current year losses surrendered for part
payment (1,372) (818)
Current tax credit for the year 706 538
-------- --------
A number of changes to the UK Corporation tax system were
announced in the June 2010 Budget Statement. The Finance (No2) Act
2010 included legislation to reduce the main stream rate of
corporation tax from 28% to 27% from 1 April 2011. Additional
changes were announced in the March 2011 Budget Statement to
further reduce the main stream rate of corporation tax to 26% from
1 April 2011. As a result of the change the deferred tax balances
have been remeasured accordingly.
Notes to the accounts (continued)
For the year ended 31 March 2011
6 Tax credit on loss on ordinary activities (continued)
Additional changes were announced in the March 2011 Budget
Statement to further reduce the main stream rate of corporation by
1% per annum to 23% by 1 April 2014. The changes had not been
substantively enacted at the balance sheet date and therefore are
not included in these financial statements.
7 Tangible fixed assets
DBFO Roads
GBP'000
Cost
At 1 April 2010 and 31 March
2011 156,373
Depreciation
At 1 April 2010 23,013
Charge for the year 7,506
At 31 March 2011 30,519
--------
Net book value
At 31 March 2011 125,854
--------
At 31 March 2010 133,360
--------
The cost of the DBFO Road includes cumulative capitalised
interest of GBP13,139,000 (2010 - GBP13,139,000)
Finance costs have been capitalised within fixed assets based on
a fixed rate of 5.404%.
8 Debtors 2011 2010
GBP'000 GBP'000
Due within one year:
Trade debtors 1,410 1,298
Other debtors - group relief receivable 706 538
2,116 1,836
-------- --------
Due after one year:
Deferred taxation 2,093 2,058
------ ------
2,093 2,058
------ ------
a) Deferred taxation
2011 2010
GBP'000 GBP'000
Other timing differences (3,049) (3,480)
Losses not utilised 5,142 5,538
-------- --------
At 31 March 2,093 2,058
-------- --------
Notes to the accounts (continued)
For the year ended 31 March 2011
8 Debtors (continued)
b) Movement during the year
2011 2010
GBP'000 GBP'000
At 1 April 2,058 2,023
Current year credit to the profit and 196 128
loss account - (93)
Prior year adjustment
Impact of change in tax rate change from
28% to 26% (161) -
-------- --------
At 31 March 2,093 2,058
-------- --------
9 Investments - due within one year
Investments due within one year represent amounts held on
deposit with a financial institution which are not available for
withdrawal without penalty in under 24 hours and, in accordance
with the Company's funding arrangements, are restricted and cannot
be used to fund the ongoing operations of the Company.
10 Creditors: amounts falling due within
one year 2011 2010
GBP'000 GBP'000
Trade creditors 36 61
Secured loan stock interest 6,165 4,584
Accruals 825 506
VAT payable 154 116
Fixed rate guaranteed senior secured
bonds 1,180 1,003
8,360 6,270
-------- --------
11 Creditors: amounts falling due after
more than one year 2011 2010
GBP'000 GBP'000
Fixed rate guaranteed senior secured
bonds 144,528 145,549
Secured loan stock 14,865 14,865
-------- --------
159,393 160,414
-------- --------
Fixed rate guaranteed senior secured bonds due 2034 of
GBP152,429,000 were issued on 7 May 2003. The bonds have been
unconditionally and irrevocably guaranteed by Syncora Guarantee
(UK) Limited (formerly XL Capital Assurance (UK) Limited) for
payment of principal and interest.
Interest on the bonds is payable semi-annually in arrears on 31
March and 30 September in each year at a fixed rate of 5.404% per
annum commencing on 30 September 2003.
Unless previously redeemed or purchased and cancelled, the bonds
will mature on 31 March 2034 and are subject to redemption in part
from, and including, 30 September 2006 in accordance with the
amortisation schedule set out in the bonds offering circular.
The secured loan stock bears interest at 12.1% per annum and
accrues from the date of final completion. It is redeemable in
instalments between 2011 and 2035, or as the Company elects, but
subject to certain restrictions in the collateral deed. The secured
loan stock is held by the Company's parent company. The Company's
parent company has issued loan stock to its immediate shareholders
with identical terms and conditions.
Notes to the accounts (continued)
For the year ended 31 March 2011
11 Creditors: amounts falling due after more than one year
(continued)
All borrowings contain either a fixed or varying security
interest over the assets of the Company, as defined by an
intercreditor agreement. The bonds have certain covenants
attached.
Fixed rate guaranteed senior secured bonds are stated net of
unamortised issue costs of GBP3,110,000 (2010 - GBP3,269,000). The
Company incurred total issue costs of GBP4,403,000 in respect of
the fixed rate bonds. These costs, together with the interest
expense, are allocated to the profit and loss amount over the term
of the bonds. Interest is calculated using the effective interest
rate method.
The Company has committed borrowing facilities available of
GBP167,294,000 which have been fully drawn as at 31 March 2011
(2010 - GBP167,294,000).
2011 2010
GBP'000 GBP'000
Fixed rate guaranteed senior secured
bonds 152,429 152,429
Secured loan stock 14,865 14,865
---------- ----------
167,294 167,294
---------- ----------
The borrowings are repayable as follows: 2011 2010
GBP'000 GBP'000
Repayable within one year 1,180 1,003
Repayable between one and two years 1,763 1,180
Repayable between two and five years 7,001 6,108
Repayable after five years 150,629 153,126
-------- --------
160,573 161,417
-------- --------
12 Financial instruments and derivatives
The Company's financial instruments comprise borrowings. The
main purpose of these financial instruments is to raise finance for
the construction and operation of the DBFO roads. The Company has
not entered into derivatives transactions. It is, and has been
throughout the year under review, the Company's policy that no
trading in financial instruments shall be undertaken. The main risk
arising from the Company's financial instruments is liquidity risk.
The Board's policy for managing this risk is summarised below:
Liquidity risk
The Company's policy throughout the year has been, in order to
ensure continuity of funding, that substantially all of its
borrowings should mature in more than one year.
Interest rate risk
The Company has no exposure to interest rate risk as all its
borrowings are at a fixed rate of interest.
Foreign currency risk
The Company has no foreign currency transactions. All of the
Company's borrowings are denominated in sterling.
Notes to the accounts (continued)
For the year ended 31 March 2011
12 Financial instruments and derivatives (continued)
Interest rate profile
The interest rate profile of the Company's financial liabilities
was as follows:
2011 2010
GBP'000 GBP'000
Fixed rate borrowings 160,573 161,417
-------- --------
The fixed rate bonds have interest payable at 5.404% per annum
and the secured loan stock has interest payable at 12.1% per
annum.
Maturity of financial liabilities
The maturity profile of the Company's financial liabilities was
as follows:
2011 2010
Borrowings GBP'000 GBP'000
Repayable within one year 1,180 1,003
Repayable between one and two years 1,763 1,180
Repayable between two and five years 7,001 6,108
Repayable after five years 150,629 153,126
--------- ---------
160,573 161,417
--------- ---------
Fair values
Set out below is a comparison of book values and fair values of
the Company's financial instruments.
Book Book Fair Fair
value value value value
2011 2010 2011 2010
GBP000 GBP'000 GBP000 GBP'000
Primary financial instruments
held or issued to finance
the Company's operations
Fixed rate secured bonds 145,708 146,552 121,754 118,868
Secured loan stock 14,865 14,865 38,979 32,949
-------- --------- -------- ---------
160,573 161,417 160,733 151,817
-------- --------- -------- ---------
Market value has been used to determine the fair value of the
financial instruments at 31 March 2011 and 31 March 2010.
13 Called up share capital 2011 2010
GBP'000 GBP'000
Allotted, called up and
fully paid
50,000 ordinary shares
of GBP1 each 50 50
-------- --------
Notes to the accounts (continued)
For the year ended 31 March 2011
14 Profit and loss account
2011 2010
GBP'000 GBP'000
At 1 April (20,382) (15,657)
Loss for the financial year (7,379) (4,725)
--------- ---------
At 31 March (27,761) (20,382)
--------- ---------
15 Reconciliation of movements in shareholders'
deficit 2011 2010
GBP'000 GBP'000
Opening shareholders' deficit (20,332) (15,607)
Loss for the financial year (7,379) (4,725)
--------- ---------
Closing shareholders' deficit (27,711) (20,332)
--------- ---------
16 Capital commitments 2011 2010
GBP'000 GBP'000
Contracted but not provided for 335 335
-------- --------
17 Related party transactions
During the year to 31 March 2011 Balfour Beatty Capital Limited,
a wholly owned subsidiary of Balfour Beatty plc, was employed under
a Secondment Agreement with the Company for the provision of
technical and managerial staff. The value of the services provided
in the year was GBP268,068 (2010 - GBP307,028). The amount included
in creditors at the year end was GBP68,525 (2010 - GBP36,022).
During the year to 31 March 2011 Balfour Beatty Civil
Engineering Limited, a wholly owned subsidiary of Balfour Beatty
plc, was employed under a contract with the Company to construct
the DBFO roads and for the provision of management services for the
operation and maintenance of the DBFO roads. The value of the
contract in the year was GBP1,562,544 (2010 - GBPnil). The amount
included in creditors at the year end was GBPnil (2010 -
GBPnil).
During the year to 31 March 2011 Balfour Beatty Infrastructure
Services Limited, a wholly owned subsidiary of Balfour Beatty plc,
was employed under a contract with the Company for the provision of
management services for the operation and maintenance of the DBFO
roads. The value of the contract in the year was GBP278,115 (2010 -
GBP1,881,982). The amount included in creditors at the year end was
GBPnil (2010 - GBPnil).
During the year to 31 March 2011 Balfour Beatty Fleet Services
Limited, a wholly owned subsidiary of Balfour Beatty plc, was
employed under a contract with the Company for the provision of
vehicle hire services for the operation and maintenance of the DBFO
roads. The value of the contract in the year was GBP11,133 (2010 -
GBP68,546). The amount included in creditors at the year end was
GBP4,948 (2010 - GBP9,896).
During the year to 31 March 2011 Parsons Brinckerhoff, a wholly
owned subsidiary of Balfour Beatty plc, was employed under a
contract with the Company for the provision of principal bridge
inspections on structures on the DBFO roads. The value of the
contract in the year was GBP44,217 (2010 - GBPnil). The amount
included in creditors at the year end was GBP6,400 (2010 -
GBPnil).
Notes to the accounts (continued)
For the year ended 31 March 2011
18 Ultimate parent companies and controlling parties
The Company's immediate parent company is Connect M77/GSO
Holdings Limited, which is incorporated in Great Britain and
registered in England and Wales. Connect M77/GSO Holdings Limited
is the parent company of the largest and smallest group of which
the Company is a member and for which group accounts are drawn up.
Copies of these accounts are available from 6(th) Floor, 350 Euston
Road, Regent's Place, London NW1 3AX.
The Company is jointly controlled by Balfour Beatty plc and
Barclays Integrated Infrastructure Fund (acting by its manager,
Barclays Private Equity Limited).
Click on, or paste the following link into your web browser, to
view the associated PDF document.
http://www.rns-pdf.londonstockexchange.com/rns/3746L_-2011-7-29.pdf
This information is provided by RNS
The company news service from the London Stock Exchange
END
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