Interim Results
08 Dezember 2005 - 8:03AM
UK Regulatory
RNS Number:3277V
Bristol Water PLC
08 December 2005
BRISTOL WATER plc
Announcement of interim dividend and interim results for six months ended 30
September 2005
Bristol Water plc is a subsidiary of Bristol Water Group plc (BWG), which is
also reporting its results today.
For further information:
Alan Parsons, Chief Executive Jonathan Gillen
Andy Nield, Finance Director City Profile
Bristol Water plc Tel: 020 7448 3244
Tel: 020 7448 3244 (8th December) Jeremy Williams, Corporate Affairs
Tel: 0117 953 6407 (thereafter) Bristol Water plc
Tel: 0117 953 6470 / 07831 453924
or contact:
Bristol Water Corporate Affairs on 0117 953 6470 during office hours or 07831
453924 or 07831 518964 at any time
HIGHLIGHTS
Six months ended 30 September 2005 2004
(unaudited) (unaudited)
(restated)
#m #m % change
Turnover 41.1 35.3 +17%
Operating profit 13.3 9.2 +44%
Profit before tax 10.8 6.4 +70%
Profit after tax 7.4 5.2 +42%
Regulatory Capital Value (RCV)* 235 229
Net debt as percentage of RCV 71% 62%
Earnings per ordinary share 113.8p 77.7p +46%
* PBT #10.8m - 70% increase reflecting K factor of 13.8%
* Net capital investment of #7.7m in period
* Net debt of #167.3m - approximately 71% of forecast Regulatory Capital
Value for 2005/06
* Results are reported under UK GAAP. Parent company has announced
consolidated group results under IFRS
* Results for the previous period are restated to reflect full adoption of
FRS17 and FRS21
* Forecast year end RCV; 2004 RCV represents opening PR04 value
Bristol Water plc supplies water to over one million people and businesses in an
area of almost 2,400 square kilometres, centred on Bristol.
CHAIRMAN'S STATEMENT
Introduction
The company is in the first year of the new regulatory period covering the five
years 2005-10 and is making good progress towards delivery of the required
outputs and efficiency targets for the five-year period specified by Ofwat in
its determination of the new price limits.
Financial performance in 2004/05 was adversely affected by a combination of
expenses being incurred that were not provided for within allowed price limits,
together with a provision for restructuring costs. The price limits for the new
five-year period provide for most of these additional costs together with the
financing of a substantial capital investment programme. The allowed price limit
increase of 17.3% for the year, together with efficiency gains from the
restructuring programme, has resulted in operating profit increasing by 44% to
#13.3m.
During 2004/05 we initiated a programme to further improve the operational
efficiency of the company. Over the past six months we have implemented a number
of redundancies and arranged for the outsourcing of our laboratory services. We
are continuing to seek further potential savings, where consistent with the
maintenance of service standards and appropriate levels of risk.
Capital investment net of grants and contributions in the period amounted to
#7.7m. A major focus during the period has been planning and initiation of
projects for the five-year period and we anticipate a significant increase in
net capital expenditure during the second half year.
A key scheme is the #20m project to improve the security of supply for customers
in the northern part of our area. The first stages of this are progressing well
and the overall scheme should be completed during 2007/08. We have also been
working on two schemes to deal with deteriorating sources of raw water and are
finalising two innovative solutions that will allow us to achieve the quality
related objectives and also to streamline existing processes at two of our
treatment plants.
Levels of service to customers remain extremely high, as reflected in Ofwat's
assessment of levels of service and customer surveys.
At a national level there has been considerable publicity about drought
conditions during the summer and the potential restriction of water supplies. In
the Bristol area we suffered from low rainfall during both the important 2004/05
winter period and during this summer. This has led to reservoir levels being
lower than normal, but still within normal control parameters. Heavy rainfall
during October and early November meant that by the end of November reservoir
levels had improved significantly to above normal levels. We are continuing, as
always, to encourage customers to minimise the waste of water wherever possible,
but have not sought to impose restrictions on use. The next 2-3 month's rainfall
remains important to ensure an adequate recharge of the reservoirs.
Accounting standards
Bristol Water Group plc, the ultimate parent company, is also reporting its
consolidated interim results today. These are being reported under International
Financial Reporting Standards (IFRS). As previously indicated Bristol Water plc
does not currently intend to adopt IFRS and therefore will continue to report
under UKGAAP.
There have been a number of changes to UKGAAP in the period. The two significant
changes for the company are FRS17 (Pension costs) and FRS21 (Events after the
balance sheet date). The new standards have been adopted for the interim results
and comparative figures for the previous year have been restated accordingly.
Financing arrangements
Additional long-term index linked debt of #57m was successfully raised through
the Artesian programmes arranged by The Royal Bank of Scotland. #21.5m was used
to provide an intercompany loan to the ultimate parent company and #7m to make a
special contribution to the defined benefit pension scheme. The remainder will
be used to finance capital expenditure and debt maturities over the next two
years. This 'pre-funding' is reflected in the relatively high cash at bank and
on deposit of #39.4m at 30 September 2005.
The parent company then used the #21.5m loan plus other cash balances to finance
a return of approximately #30m to shareholders, which was completed during July.
At 30 September 2005 the net debt was #167.3m representing approximately 71% of
the forecast Regulatory Capital Value (RCV) at 31 March 2006. We anticipate
maintaining a debt to RCV ratio in the range of 75% to 80% over the remainder of
the five year regulatory period.
Pensions
Pension arrangements for the majority of the company's employees are provided
through the group's membership of the Water Companies Pension Scheme (WCPS),
which provides defined benefits based on final pensionable pay. The pension
sections were closed to new entrants a number of years ago and all new employees
are offered stakeholder pension arrangements.
At 30 September 2005 the gross deficit, under FRS17 and included within the
balance sheet, was #1.5m. This is #10.4m lower than the equivalent figure at 31
March 2005 reflecting the additional contribution of #7.0m made during the
period together with favourable actuarial movements. The company has also agreed
to make further additional contributions of #1.0m in each of the four years
beginning April 2006 and #0.9m in 2010/11.
Dividends
The company plans to pay an annual level of ordinary dividends comprising:
* A base level of dividend reflecting the cost of capital allowed by Ofwat
in the determination of price limits, adjusted to reflect actual gearing
levels and where appropriate actual performance relative to Ofwat's
assumptions.
* An amount equal to the post-tax interest receivable from the ultimate
parent company in respect of intercompany loans.
The Board declared a first interim dividend of #1.2m in respect of intercompany
loan interest for the six months to 30 September 2005. This was paid in October.
The Board has now declared a second interim dividend of #2.3m in respect of the
base level of dividend for the six months to 30 September 2005, which will be
paid on 8 December 2005.
Conclusions
The company is well placed for the future.
Moger Woolley
Chairman
8 December 2005
PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2005
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
Note #m #m #m
Turnover 2 41.1 35.3 70.6
Operating costs (27.8) (26.1) (52.6)
Exceptional operating costs - - (1.7)
--------------------------------------------------------------------------------
3 (27.8) (26.1) (54.3)
--------------------------------------------------------------------------------
Operating profit 13.3 9.2 16.3
Net interest payable 4 (2.9) (3.2) (6.6)
Interest in respect of
retirement benefit
obligations 4 0.4 0.4 0.8
--------------------------------------------------------------------------------
Profit on ordinary activites
before taxation 10.8 6.4 10.5
Taxation on profit on
ordinary activities 5 (3.4) (1.2) (1.4)
--------------------------------------------------------------------------------
Profit on ordinary
activities after taxation 7.4 5.2 9.1
--------------------------------------------------------------------------------
Dividends - 6
On irredeemable preference
shares (non-equity) (0.5) (0.5) (1.1)
On ordinary shares (equity) (6.5) (4.5) (7.3)
--------------------------------------------------------------------------------
Total dividends (7.0) (5.0) (8.4)
--------------------------------------------------------------------------------
Profit retained 0.4 0.2 0.7
--------------------------------------------------------------------------------
Earnings per ordinary share 7 113.8p 77.7p 133.3p
--------------------------------------------------------------------------------
Dividend per ordinary share 6
- declared or proposed in
respect of the period 58.30p 47.15p 135.15p
--------------------------------------------------------------------------------
- charged in the profit and
loss account during the
period 107.62p 74.27p 121.42p
--------------------------------------------------------------------------------
All activities above relate to the continuing operations of the company.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 September 2005
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
Note #m #m #m
Profit attributable to
Bristol Water plc
ordinary shareholders 6.9 4.7 8.0
Actuarial gains/(losses)
recognised in respect of
retirement benefit
obligations 11 2.7 (0.6) 1.7
Attributable deferred
taxation 11 (0.7) 0.2 (0.3)
--------------------------------------------------------------------------------
Total recognised gains for
the period 8.9 4.3 9.4
--------------------------------------------------------------------------------
BALANCE SHEET
30 September 2005
At At At
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
Note #m #m #m
Fixed assets 8 194.5 194.5 195.6
Investment - Loans to ultimate
holding company 68.5 47.0 47.0
Current assets
Stocks 0.7 0.6 0.6
Debtors 21.4 20.8 18.5
Cash at bank and on deposit 9 39.4 11.9 12.0
--------------------------------------------------------------------------------
61.5 33.3 31.1
--------------------------------------------------------------------------------
Creditors: amounts falling due
within one year
Short term borrowings 9 (4.0) (5.4) (3.7)
Other creditors (19.5) (17.6) (17.6)
--------------------------------------------------------------------------------
(23.5) (23.0) (21.3)
--------------------------------------------------------------------------------
Net current assets 38.0 10.3 9.8
--------------------------------------------------------------------------------
Total assets less current
liabilities 301.0 251.8 252.4
Creditors: amounts falling due
after more than one year 9 (202.7) (149.3) (148.4)
Deferred income (9.5) (8.5) (8.6)
Provisions for liabilities and
charges 10 (18.2) (15.6) (16.8)
Retirement benefit obligations 11 (1.5) (14.0) (11.9)
--------------------------------------------------------------------------------
Net assets 69.1 64.4 66.7
--------------------------------------------------------------------------------
Capital and reserves
Called up share capital 18.5 18.5 18.5
Share premium 4.4 4.4 4.4
Other reserves 5.8 5.8 5.8
Profit and loss account 40.4 35.7 38.0
--------------------------------------------------------------------------------
Total shareholders' funds 12 69.1 64.4 66.7
--------------------------------------------------------------------------------
Analysed as attributable to:
Equity interests 56.6 51.9 54.2
Non-equity interests 12.5 12.5 12.5
CASH FLOW STATEMENT
For the six months ended 30 September 2005
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
Note #m #m #m
Net cash inflow from
operating activities 13 11.4 15.6 34.1
--------------------------------------------------------------------------------
Returns on investments and servicing
of finance
Net interest paid (3.2) (2.9) (5.3)
Non-equity dividends paid (0.6) (0.6) (1.7)
Net costs of issue of new loans (1.1) - -
--------------------------------------------------------------------------------
(4.9) (3.5) (7.0)
--------------------------------------------------------------------------------
Corporation tax paid (0.4) (1.6) (1.9)
--------------------------------------------------------------------------------
Capital expenditure and investing
activities
Purchase of fixed assets (8.9) (10.1) (20.1)
Contributions received 1.8 2.0 3.7
Proceeds on disposal of fixed
assets - 0.1 -
Loan advanced to ultimate holding
company (21.5) - -
--------------------------------------------------------------------------------
(28.6) (8.0) (16.4)
--------------------------------------------------------------------------------
Equity dividends paid (5.3) (4.5) (7.3)
--------------------------------------------------------------------------------
Cash (outflow)/inflow before
management of liquid resources
and financing (27.8) (2.0) 1.5
Management of liquid resources
being (increase) / decrease in
short term deposits (27.8) 4.5 5.4
--------------------------------------------------------------------------------
(55.6) 2.5 6.9
Financing
New term loans 57.0 - -
Capital element of loan and lease
repayments (1.8) (3.5) (6.9)
--------------------------------------------------------------------------------
55.2 (3.5) (6.9)
--------------------------------------------------------------------------------
Decrease in cash 13 (0.4) (1.0) -
Cash, beginning of period 1.6 1.6 1.6
--------------------------------------------------------------------------------
Cash, end of period 1.2 0.6 1.6
--------------------------------------------------------------------------------
NOTES TO THE INTERIM RESULTS
For the six months ended 30 September 2005
Note 1: Accounting policies
The financial information contained in this interim announcement does not
constitute statutory accounts within the meaning of s.240 of the Companies
Act 1985. The interim results, which have not been audited but have been
reviewed by the company's auditors, have been prepared on the basis of the
new accounting standards outlined below and where there are no changes,
those accounting policies adopted by Bristol Water plc for the year ended
31March 2005 as set out in the Annual Report and Accounts. Those accounts
(on which the auditors gave an unqualified report) have been delivered to
the Registrar of Companies.
During this period the company has adopted the following new Financial
Reporting Standards (FRS) in its financial statements, insofar as they are
applicable to the affairs of the company:
FRS 17 - Retirement benefits
FRS 20 - Share based payments
FRS 21 - Events after the balance sheet date
FRS 22 - Earnings per share
FRS 23 - Effects of changes in foreign exchange rates
FRS 24 - Financial reporting in hyperinflationary economies
FRS 25 - Financial Instruments: Disclosure and presentation
FRS 26 - Financial Instruments: Measurement
The main effects of these changes are as follows:
FRS 17: Full provision is made in these accounts for the deficit
arising in the company's share of the Water Companies' Pension Scheme
(WCPS), as further described in note 12. The effect of the change in
accounting policy is:
* to increase profit after tax by #0.1m (six months ended 30 September
2004: #0.2m; year ended 31 March 2005: #0.3m)
* to increase / (decrease) total recognised gains and losses for the
period by #2.1m (six months ended 30 September 2004: #(0.2)m; year ended
31 March 2005: #1.7m)
* to increase / (decrease) net assets as at 30 September 2005 by #1.7m
(as at 30 September 2004: #(9.4)m; as at 31 March 2005: #(7.5)m)
FRS 21: Dividends are now recognised, and charged against profits, at the time
they are declared, rather than at the time they are proposed, or in respect of
the years to which they relate. This decreases retained profit at 30 September
2005 by #3.0m (at 30 September 2004 by #1.6m and increases retained profit at
31 March 2005 by #0.8m). It also increases net assets as at 30 September 2005
by #2.3m (as at 30 September 2004: #2.8m; as at 31 March 2005: #5.3m).
As outlined in the company's Annual Report and Accounts for the year ended 31
March 2005, the company will not be adopting IFRS for its financial statements
for the year ended 31 March 2006.
As a result of changes made in the Water Act 2003, revenue deficit
contributions received on or after 1 April 2005 are credited to deferred
income and amortised over a three year period.
Note 2: Turnover
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited)
#m #m #m
Turnover comprises -
Metered water supply 15.7 13.1 26.2
Unmetered water supply 22.0 19.8 39.7
Other services 3.4 2.4 4.7
--------------------------------------------------------------------------------
41.1 35.3 70.6
--------------------------------------------------------------------------------
Note 3: Operating costs (including exceptional operating costs)
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
Operating costs comprise -
Payroll cost, net of recharges to
fixed assets, and including
retirement benefit costs
arising under FRS 17 6.2 5.7 13.1
Other operating expenses 13.1 13.2 26.6
Depreciation, net of amortisation of 8.5 7.2 14.6
deferred income
--------------------------------------------------------------------------------
27.8 26.1 54.3
--------------------------------------------------------------------------------
The depreciation charge for the six months to 30 September 2005 is stated
after charging #0.2m accelerated depreciation in respect of plant planned
to be taken out of service early as part of a capital project to meet
quality obligations and streamlining of treatment processes (six months to
30 September 2004 and year to 31 March 2005: #Nil).
Exceptional operating costs of #1.7m related to a restructuring programme to
improve the operating efficiency of the company are included in the total for
31 March 2005.
Note 4: Net interest payable
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
Net interest payable and similar charges
comprise -
Interest payable and similar
charges 5.5 5.0 10.1
Interest income (2.6) (1.8) (3.5)
--------------------------------------------------------------------------------
2.9 3.2 6.6
Net finance income in respect
of retirement benefit obligations (0.4) (0.4) (0.8)
--------------------------------------------------------------------------------
2.5 2.8 5.8
--------------------------------------------------------------------------------
Note 5: Taxation on profit on ordinary activities
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
The charge for taxation
comprises -
Current tax:
Corporation Tax at 30% 1.9 1.0 1.0
Advance Corporation Tax written
back - (0.6) (1.5)
Adjustment to prior periods - 0.6 1.7
Receipts in respect of group relief - - 1.0
--------------------------------------------------------------------------------
Total current tax 1.9 1.0 2.2
--------------------------------------------------------------------------------
Deferred tax:
Current period movement 1.7 1.0 1.1
Adjustment to prior periods - (0.6) (1.8)
Effect of discounting (0.2) (0.2) (0.1)
--------------------------------------------------------------------------------
Total deferred tax 1.5 0.2 (0.8)
--------------------------------------------------------------------------------
Total taxation on profit on ordinary 3.4 1.2 1.4
activities
--------------------------------------------------------------------------------
Note 6: Dividends
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
8.75% Cumulative Preference
Shares
Interim dividend paid 30 September 0.5 0.5 0.5
Final dividend paid 31 March - - 0.6
--------------------------------------------------------------------------------
0.5 0.5 1.1
--------------------------------------------------------------------------------
Ordinary shares
Dividend in respect of 2003/04:
Final dividend of 74.27 pence per
share, approved at the Annual General
Meeting on 19 July 2004 - 4.5 4.5
Dividend in respect of 2004/05:
Interim dividend of 47.15
pence per share, approved by
the Board on 7 December 2004 - - 2.8
Final dividend of 88.00 pence per
share, approved at the Annual General
Meeting on 18 July 2005 5.3 - -
Dividend in respect of 2005/06:
First interim dividend of 19.62 pence
per share, approved by the Board on 29
September 2005 1.2 - -
--------------------------------------------------------------------------------
6.5 4.5 7.3
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total dividend 7.0 5.0 8.4
--------------------------------------------------------------------------------
The Board has declared a second interim dividend of 38.68 pence per share,
totalling #2.3m, in respect of the six months ended 30 September 2005. This
will be paid on 8 December 2005. In accordance with FRS21 the second interim
dividend is not recognised in these accounts as a liability.
Note 7: Earnings per share attributable to ordinary shares
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
m m m
Earnings per share have been
calculated as follows:
Earnings #6.9 #4.7 #8.0
Weighted average number of
ordinary shares in issue 6.0 6.0 6.0
--------------------------------------------------------------------------------
Note 8: Movement in fixed assets
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
The movement in fixed assets comprises -
Net book value, beginning
of period 195.6 193.8 193.8
Additions 9.1 10.1 20.3
Disposals - - 0.1
Grants and contributions (1.4) (2.0) (3.7)
Depreciation (8.8) (7.4) (14.9)
--------------------------------------------------------------------------------
Net book value, end of
period 194.5 194.5 195.6
--------------------------------------------------------------------------------
Note 9: Net debt
At At At
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited)
#m #m #m
Net debt comprises -
Debt due after one year 202.7 149.3 148.4
Debt due within one year 4.0 5.4 3.7
Less cash balances and short term
deposits (39.4) (11.9) (12.0)
--------------------------------------------------------------------------------
Net debt 167.3 142.8 140.1
--------------------------------------------------------------------------------
Note 10: Provisions for liabilities and charges
At At At
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
Restructuring costs 0.9 - 1.7
Deferred tax (see below) 17.3 15.6 15.1
--------------------------------------------------------------------------------
18.2 15.6 16.8
--------------------------------------------------------------------------------
Deferred taxation
provision
Deferred tax liability 31.1 29.3 28.7
Effect of discounting (13.8) (13.7) (13.6)
--------------------------------------------------------------------------------
Net provision 17.3 15.6 15.1
--------------------------------------------------------------------------------
Note 11: Pensions
Pension arrangements
Pension arrangements for the majority of the company's employees are
provided through the company's membership of the Water Companies' Pension
Scheme (WCPS), which provides defined benefits based on final pensionable
pay. Bristol Water plc'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 stakeholder pensions.
In addition to providing benefits to employees and ex-employees of Bristol
Water plc, the section provides benefits to employees and ex-employees of
Bristol Water Holdings plc and 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 company made a contribution of #7.0m to WCPS in July 2005. It has also
agreed to make additional contributions of #1.0m in each of the four years
beginning 1 April 2006 and a further #0.9m in 2010/11. The amounts are in
addition to the normal pension contributions required by the WCPS trustee.
A triennial actuarial valuation of the section as at 1 April 2005 is currently
being finalised by the scheme actuary.
Accounting under FRS17 Retirement Benefits
FRS17 became mandatory for accounting periods starting on or after 1 January
2005, which for the company is the current year ending 31 March 2006.
In accordance with FRS 17 actuarial gains and losses are recognised
immediately in the Statement of Total Recognised Gains and Losses. Prior years
have been restated accordingly.
In summary assets and liabilities were:
30 September 30 September 31 March
2005 2004 2005
#m #m #m
Total fair value of assets 116.0 91.6 98.2
FRS 17 value of liabilities (117.5) (105.6) (110.1)
--------------------------------------------------------------------------------
Gross retirement benefit liability
before attributable deferred taxation (1.5) (14.0) (11.9)
--------------------------------------------------------------------------------
Note 12: Total shareholders' funds
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
Movement in shareholders'
funds -
At beginning of period as
previously reported: 68.9 69.3 69.3
Effect of adoption of FRS17 (7.5) (9.2) (9.2)
Effect of adoption of FRS21 5.3 4.5 4.5
--------------------------------------------------------------------------------
At beginning of period as now
restated 66.7 64.6 64.6
Profit on ordinary activities
after taxation for the period 7.4 5.2 9.1
Actuarial gains / (losses)
related to retirement benefit
obligations 2.7 (0.6) 1.7
Deferred tax attributable to
actuarial gains / losses (0.7) 0.2 (0.3)
Dividends (7.0) (5.0) (8.4)
--------------------------------------------------------------------------------
End of period 69.1 64.4 66.7
--------------------------------------------------------------------------------
Note 13: Supplementary cashflow information
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited) (restated)
(restated)
#m #m #m
a) Reconciliation of operating
profit to net cash inflow
from operating activities -
Operating profit 13.3 9.2 16.3
Depreciation net of
amortisation of deferred
income 8.5 7.2 14.6
--------------------------------------------------------------------------------
Cash flow from operations 21.8 16.4 30.9
Working capital movements (3.4) (0.8) 3.2
Additional contributions to
pension scheme (7.0) - -
--------------------------------------------------------------------------------
Net cash inflow from operating
activities 11.4 15.6 34.1
--------------------------------------------------------------------------------
Six months to Six months to Year to
30 September 30 September 31 March
2005 2004 2005
(unaudited) (unaudited)
#m #m #m
b) Reconciliation of net cash flow
to movement in net debt -
Decrease in cash in the period (0.4) (1.0) -
Cash used to repay borrowings 1.8 3.5 6.9
Cash from new borrowings (57.0) - -
Costs of issue of new loans 1.1 - -
Increase / (decrease) in short term
deposits 27.8 (4.5) (5.4)
--------------------------------------------------------------------------------
(Increase) / decrease in net
borrowings (26.7) (2.0) 1.5
Movement in net debt not
affecting cash flow -
indexation of existing debt (0.5) (0.5) (1.3)
Net debt, beginning of period (140.1) (140.3) (140.3)
--------------------------------------------------------------------------------
Net debt, end of period (167.3) (142.8) (140.1)
--------------------------------------------------------------------------------
Note 14: Circulation
This interim announcement is being sent to all shareholders and debenture
holders. Copies are available to the public from the company's registered
office at PO Box 218, Bridgwater Road, Bristol, BS99 7AU and on the Bristol
Water web site: http://www.bristolwater.co.uk.
INDEPENDENT REVIEW REPORT TO BRISTOL WATER PLC
For the six months ended 30 September 2005
Introduction
We have been instructed by the company to review the financial information,
which comprises the Profit and Loss Account, Statement of Total Recognised Gains
and Losses, Balance Sheet, Cash Flow Statement and related notes, for the six
months ended 30 September 2005. We have read the other information contained in
the interim report and considered whether it contains any apparent misstatements
or material inconsistencies with the financial information.
Directors' responsibilities
The interim report, including the financial information contained therein, is
the responsibility of, and has been approved by the directors. The directors are
responsible for preparing the interim report in accordance with the Listing
Rules of the Financial Services Authority which require that the accounting
policies and presentation applied to the interim figures should be consistent
with those applied in preparing the preceding annual accounts except where any
changes, and the reasons for them, are disclosed.
Review work performed
We conducted our review in accordance with guidance contained in Bulletin 1999/4
issued by the Auditing Practices Board for use in the United Kingdom. A review
consists principally of making enquiries of management and applying analytical
procedures to the financial information and underlying financial data and, based
thereon, assessing whether the accounting policies and presentation have been
consistently applied unless otherwise disclosed. A review excludes audit
procedures such as tests of controls and verification of assets, liabilities and
transactions. It is substantially less in scope than an audit performed in
accordance with United Kingdom Auditing Standards and therefore provides a lower
level of assurance than an audit. Accordingly we do not express an audit opinion
on the financial information. This report, including the conclusion, has been
prepared for and only for the company for the purpose of the Listing Rules of
the Financial Services Authority and for no other purpose. We do not, in
producing this report, 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.
Review conclusion
On the basis of our review we are not aware of any material modifications that
should be made to the financial information as presented for the six months
ended 30 September 2005.
PricewaterhouseCoopers LLP
Chartered Accountants
Bristol
8 December 2005
Notes:
(a) The maintenance and integrity of the Bristol Water website is the
responsibility of the directors; the work carried out by the auditors does
not involve consideration of these matters and, accordingly, the auditors
accept no responsibility for any changes that may have occurred to the
interim report since it was initially presented on the website.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information may differ from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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