Interim Results
30 November 2006 - 8:30AM
UK Regulatory
RNS Number:9432M
Bristol Water PLC
30 November 2006
BRISTOL WATER plc
Announcement of interim results for the six months ended 30 September 2006
Bristol Water plc is a subsidiary of Sociedad General de Aguas de Barcelona S.A.
For further information:
Alan Parsons, Managing Director
Andy Nield, Finance Director
Bristol Water plc
Tel: 0117 953 6407
or contact:
Bristol Water Corporate Affairs on 0117 953 6470 during office hours
or 07831 453924 or 07831 518964 at any time.
HIGHLIGHTS - REPORTED UNDER UK GAAP
Six months ended 30 September 2006 2005
(unaudited) (unaudited)
(restated)
#m #m
Turnover 43.3 41.1
Operating profit 14.0 13.2
Profit before taxation 12.1 10.4
Profit after taxation 9.7 6.9
Regulatory Capital Value (RCV) - forecast / actual
year end 256 235
Net debt (excluding 8.75% irredeemable cumulative
preference shares) as percentage of RCV 67% 71%
* Profit before taxation #12.1m - 16% increase reflecting K factor of
2.8%; second half results will be lower due to increased energy and interest
costs
* Net capital investment of #19.6m in period
* Net debt, excluding #12.5m of 8.75% irredeemable cumulative preference
shares, of #172m - approximately 67% of projected RCV at 31 March 2007
* Results for the previous period are restated to reflect full adoption of
FRS17, FRS20, FRS25 and FRS26
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
In June the acquisition of Bristol Water Group by Sociedad General de Aguas de
Barcelona S.A. (Agbar) was completed. Three parent company nominees have joined
the Board, two in executive positions. In connection with the acquisition we
have agreed with Ofwat a minor change to our licence of appointment as a water
undertaker.
Agbar provides water services to approximately 23 million people worldwide and
their expertise and understanding of the water industry will reinforce Bristol
Water's commitment to providing high standards of service to its customers.
Operational performance
The company continues to make good progress in the delivery of the outputs
required by Ofwat's determination of price limits for the 2005-2010 period. In
particular we have two major capital schemes in progress:
* A #25m project to improve the security of supply for a population of
almost 200,000 in the northern and eastern parts of Bristol and surrounding
areas.
* A #9m project to upgrade our Banwell treatment works to improve its
effectiveness in dealing with a range of different raw water qualities.
In total we invested #21m in capital projects during the six months to
September. We currently anticipate a total investment programme for the 5-year
regulatory period of almost #170m (in 2006/07 prices, gross of grants and
contributions). This is broadly in line with Ofwat's assumptions.
Bristol Water has a mix of water sources with approximately 40% from impounding
reservoirs, 40% to 50% from river sources and the balance from groundwater
sources. This mix provides considerable flexibility. We have not had any water
usage restrictions for over 15 years and do not anticipate any need for them in
the foreseeable future. However we are not complacent and are continually
reinforcing the message to customers of the need to use water wisely. During
2005/06 we continued to meet our leakage target as agreed with Ofwat, and are
making good progress to do so again in the current year.
Billing and operational service levels have remained high. Our surveys show
continuing high levels of customer satisfaction.
Financial performance
Operating profit increased by #0.8m to #14.0m. This reflects the average 5.2%
increase in charges to customers under the approved price limits, together with
the impact of our continuing efficiency initiatives offset by additional
depreciation charges related to the capital investment programme.
An important element of our operating cost base is energy and the remainder of
the year will be adversely affected by the impact of a price increase of
approximately 65% effective from October 2006.
Net interest charges, excluding those related to retirement benefits and the
preference share dividend, reduced by #0.4m to #2.3m. This reflects the
indexation charge for our index-linked debt being just 0.6% in the first six
months. The indexation charge for the second half-year will be much higher
reflecting an RPI increase of 2.6% to be charged in that period.
The tax charge of #2.4m represents an effective tax rate of 20% (30 September
2005 : 33%). The principal reason for the change is a significant increase in
the discounting of deferred taxation during the period, mainly reflecting the
significant increase in the level of capital expenditure.
Net debt, excluding the irredeemable preference shares, increased from #166.2m
at 31 March to #172.0m, and at 30 September represented approximately 67% of
projected Regulatory Capital Value at 31 March 2007. We currently anticipate
that this ratio will increase to approximately 73% by March 2007.
The company policy is to pay an annual level of ordinary dividends comprising:
* A base level reflecting the cost of capital allowed by Ofwat in the
5-year determination of price limits, adjusted to reflect actual gearing
levels and where appropriate actual performance relative to Ofwat's
assumptions.
* An amount equal to the post-tax interest receivable from Bristol Water
Group Ltd (the ultimate UK parent company) in respect of intercompany loans.
In the six months to September ordinary dividend payments were:
* Base level - fourth interim and final dividend in respect of the 2005/06
trading year of #3.5m.
* First interim for 2005/06 in respect of the intercompany loan interest
element for the first half of the year of #1.4m.
No further dividends have been proposed at the date of this report.
Moger Woolley
Chairman
30 November 2006
PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2006
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
Note #m #m #m
Turnover 2 43.3 41.1 81.9
Operating costs 3 (29.3) (27.9) (57.0)
-------- ------- -------
Operating profit 14.0 13.2 24.9
Dividends on 8.75% irredeemable
cumulative preference shares (0.5) (0.5) (1.1)
Interest in respect of retirement
benefit surplus/(deficit) 0.9 0.4 0.9
Other net interest payable and
similar charges 4 (2.3) (2.7) (6.3)
-------- ------- -------
(1.9) (2.8) (6.5)
-------- ------- -------
Profit on ordinary activities
before taxation 12.1 10.4 18.4
Taxation on profit on ordinary
activities 5 (2.4) (3.5) (6.8)
-------- ------- -------
Profit on ordinary activities
after taxation 9.7 6.9 11.6
-------- ------- -------
Earnings per ordinary share - basic
and diluted 6 160.5p 113.8p 193.0p
-------- ------- -------
Dividend per ordinary share 12
- declared or proposed in respect
of the period 23.6p 19.6p 81.8p
-------- ------- -------
- paid during the period 81.9p 107.6p 169.8p
-------- ------- -------
All activities above relate to the continuing operations of the company.
The accompanying notes to the accounts form an integral part of this statement.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 September 2006
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
Note #m #m #m
Profit attributable to Bristol
Water plc ordinary shareholders 9.7 6.9 11.6
Actuarial gains recognised in
respect of retirement benefit
surplus/(deficit) 10,11 1.1 2.7 7.8
Attributable deferred
taxation 10,11 (0.3) (0.7) (2.1)
-------- ------- -------
Total recognised gains for
the period 10.5 8.9 17.3
-------- ------- -------
The accompanying notes to the accounts form an integral part of this statement.
BALANCE SHEET
30 September 2006
At At At
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
Note #m #m #m
Fixed assets 7 207.2 194.5 197.0
Investment - Loans to ultimate UK
holding company 68.5 68.5 68.5
Current assets
Stocks 0.7 0.7 0.7
Debtors 23.0 21.4 19.1
Cash at bank 8 1.6 1.1 1.0
Other investments 8 31.9 38.3 39.5
-------- ------- -------
57.2 61.5 60.3
-------- ------- -------
Creditors: amounts falling due
within one year
Short term borrowings 8 (2.4) (4.6) (2.5)
Other creditors (21.9) (19.0) (19.2)
-------- ------- -------
(24.3) (23.6) (21.7)
-------- ------- -------
Net current assets 32.9 37.9 38.6
-------- ------- -------
Total assets less current
liabilities 308.6 300.9 304.1
Creditors: amounts falling due
after more than one year 8 (203.1) (202.7) (204.2)
8.75% irredeemable cumulative
preference shares 8 (12.5) (12.5) (12.5)
Deferred income (10.0) (9.5) (9.6)
Provisions for liabilities 9 (19.8) (18.2) (18.8)
Retirement benefit
surplus/(deficit), net of
attributable deferred taxation 10 4.5 (1.0) 3.1
-------- ------- -------
Net assets 67.7 57.0 62.1
-------- ------- -------
Capital and reserves
Called up share capital 6.0 6.0 6.0
Share premium 4.4 4.4 4.4
Share option reserve - 0.4 0.8
Other reserves 5.8 5.8 5.8
Profit and loss account 51.5 40.4 45.1
-------- ------- -------
Total shareholders' funds 11 67.7 57.0 62.1
-------- ------- -------
The accompanying notes to the accounts form an integral part of this statement.
CASH FLOW STATEMENT
For the six months ended 30 September 2006
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
Note #m #m #m
Net cash inflow from operating
activities 13 18.0 11.4 35.1
------- ------- -------
Returns on investments and servicing
of finance
Interest received 3.1 2.4 5.3
Interest paid on term loans and
debentures (3.7) (4.1) (8.4)
Interest paid on finance leases (1.2) (1.2) (1.2)
Dividends paid on 8.75% irredeemable
cumulative preference shares (0.6) (0.6) (1.1)
Net costs of issue of new loans - (1.1) (1.1)
------- ------- -------
(2.4) (4.6) (6.5)
------- ------- -------
Corporation tax paid (0.3) (0.4) (1.7)
------- ------- -------
Capital expenditure and investing
activities
Purchase of fixed assets (17.3) (8.9) (22.5)
Contributions received 1.6 1.8 3.1
Loan advanced to ultimate UK
holding company - (21.5) (21.5)
-------- ------- -------
(15.7) (28.6) (40.9)
-------- ------- -------
Equity dividends paid (4.9) (5.3) (10.2)
------- ------- -------
Cash outflow before management
of liquid resources and financing (5.3) (27.5) (24.2)
Management of liquid resources
Being decrease / (increase) in
other investments 7.6 (27.8) (29.1)
------- ------- -------
Financing
New term loans - 57.0 57.0
Capital element of lease
repayments (1.4) (1.8) (1.9)
Loan repayments - - (1.8)
Payments in respect of swap
liability (0.3) (0.3) (0.6)
-------- ------- -------
(1.7) 54.9 52.7
-------- ------- -------
Increase / (decrease) in cash 13 0.6 (0.4) (0.6)
Cash, beginning of period 1.0 1.6 1.6
-------- ------- -------
Cash, end of period 1.6 1.2 1.0
-------- ------- -------
The accompanying notes to the accounts form an integral part of this statement.
NOTES TO THE INTERIM RESULTS
For the six months ended 30 September 2006
Note 1: Accounting policies
The financial information contained in this interim announcement does not
constitute statutory accounts within the meaning of section 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 accounting policies adopted by Bristol Water plc for the year
ended 31 March 2006 as set out in the Annual Report and Accounts. A copy of
the statutory accounts for that year has been delivered to the Registrar of
Companies. The auditors' report on those accounts was not qualified and did
not contain statements under 237(2) of (3) of the Companies Act 1985.
During the year ended 31 March 2006 the company adopted the following
Financial Reporting Standards (FRS) in its financial statements, insofar as
they are applicable to the affairs of the company:
FRS17 - Retirement benefits
FRS20 - Share based payments
FRS21 - Events after the balance sheet date
FRS22 - Earnings per share
FRS23 - Effects of changes in foreign exchange rates
FRS24 - Financial reporting in hyperinflationary economies
FRS25 - Financial Instruments: Disclosure and presentation
FRS26 - Financial Instruments: Measurement
FRS28 - Corresponding Amounts
Certain changes arising from the adoption had not been identified at the
time of preparing the interim results for the six months ended 30 September
2005. The results for the comparative interim period have therefore been
restated as follows:
FRS 17: Initial assumptions regarding full recognition of the surplus/(deficit)
arising in the company's section of the Water Companies' Pension Scheme
(WCPS) were revised for the 31 March 2006 statutory accounts. The
effect of the change in assumptions on the results of the comparative
interim period is:
*to leave profit after tax unchanged
*to leave total recognised gains and losses unchanged
*to increase net asset value by #0.5m
FRS 20: Provision is made for the notional expense arising on the grant of
share options under the terms of the former Bristol Water Group Savings
Related Share Option Scheme. The effect of the change in accounting
policy on the results of the comparative interim period is:
*to reduce profit after tax by #0.1m
*to reduce total recognised gains and losses by #0.1m
*to increase net asset value by #0.3m
FRS 25: The company's 8.75% irredeemable cumulative preference shares have been
reclassified from equity to long-term creditors. The associated
dividends have been reclassified as interest expense. The effect of the
change in accounting policy on the results of the comparative interim
period is:
*to reduce profit after tax by #0.5m
*to leave total recognised gains and losses unchanged
*to reduce net asset value by #12.5m
FRS 26: The company had an interest rate swap, which matured on 26 September
2006, which is now measured at fair value. The effect of the change in
accounting policy on the results of the comparative interim period is:
*to increase profit after tax by #0.1m
*to increase total recognised gains and losses by #0.1m
*to reduce net asset value by #0.4m
Amounts charged against operating profits in respect of equity-settled
share based payments are no longer passed through the Statement of
Recognised Gains and Losses (STRGL) but appear only on the schedule of
total shareholders funds.
As outlined in the company's Annual Report and Accounts for the year ended
31 March 2006, the company does not currently intend to adopt IFRS until UK
GAAP and IFRS are fully harmonised.
Note 2: Turnover
Turnover is wholly derived from water supply and related activities in the
United Kingdom. The maximum level of prices the company may levy for the
majority of water charges is controlled by the Water Services Regulation
Authority (Ofwat) through the RPI + K price formula.
Note 3: Operating costs
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
Operating costs comprise -
Payroll cost, net of recharges
to fixed assets, and
including retirement benefit
costs and equity-settled
share based payments 5.7 6.3 11.5
Other operating costs 14.6 13.1 27.6
Depreciation, net of
amortisation of deferred income 9.0 8.5 17.9
------- ------- -------
29.3 27.9 57.0
------- ------- -------
Note 4: Other net interest payable
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
Other net interest payable and
similar charges relate to -
Bank borrowings 0.8 0.8 1.7
Term loans and debentures
- interest charges 3.5 3.2 6.8
- indexation of principal 0.5 0.6 2.1
Finance leases 0.5 0.6 1.1
------- ------- -------
5.3 5.2 11.7
------- ------- -------
Less:
Interest receivable from loan to
Bristol Water Group Ltd (2.0) (1.7) (3.7)
Other external investments
and deposits (1.0) (0.9) (1.9)
------- ------- -------
(3.0) (2.6) (5.6)
------- ------- -------
2.3 2.6 6.1
Fair value adjustment to swap liability - 0.1 0.2
------- ------- -------
Total other net interest 2.3 2.7 6.3
------- ------- -------
Note 5: Taxation on profit on ordinary activities
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
The charge for taxation comprises-
Current tax:
Corporation Tax at 30% 1.9 2.0 2.1
Adjustment to prior periods (0.2) - (0.1)
Receipts in respect of group
relief - - 1.3
------- ------- -------
Total current tax 1.7 2.0 3.3
------- ------- -------
Deferred tax:
Current period movement 1.8 1.7 2.8
Adjustment to prior periods - - 0.1
Effect of discounting (1.1) (0.2) 0.6
------- ------- -------
Total deferred tax 0.7 1.5 3.5
------- ------- -------
Total taxation on profit on ordinary
activities 2.4 3.5 6.8
------- ------- -------
The overall tax charge represents 20% (six months to 30 September 2005:
33%; year ended 31 March 2006: 37%) of the profit before taxation. The
principal reason for the change is the variation in the discounting effect
applied to the undiscounted deferred tax liabilities, in accordance with
prevailing market conditions.
Note 6: Earnings per ordinary share - basic and diluted
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
m m m
Earnings per share have been
calculated as follows -
Earnings #9.7 #6.9 #11.6
Weighted average number of
ordinary shares in issue 6.0 6.0 6.0
------- ------- -------
Note 7: Fixed assets
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
#m #m #m
The movement in fixed assets
comprises -
Net book value, beginning of
period 197.0 195.6 195.6
Additions 20.8 9.1 22.6
Disposals - - (0.2)
Grants and contributions (1.2) (1.4) (2.4)
Depreciation (9.4) (8.8) (18.6)
------- ------- -------
Net book value, end of period 207.2 194.5 197.0
------- ------- -------
Note 8: Net borrowings
At At At
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
Net borrowings comprise -
Debt due after one year, excluding
8.75% irredeemable cumulative
preference shares 203.1 202.7 204.2
Current portion of debt 2.4 4.0 2.2
Current portion of swap liability - 0.6 0.3
------- ------- -------
205.5 207.3 206.7
Cash at bank and other investments (33.5) (39.4) (40.5)
------- ------- -------
Net borrowings excluding 8.75%
irredeemable cumulative
preference shares 172.0 167.9 166.2
8.75% irredeemable cumulative preference
shares 12.5 12.5 12.5
------- ------- -------
Net borrowings 184.5 180.4 178.7
------- ------- -------
Note 9: Provisions for liabilities
At At At
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
Restructuring costs - 0.9 -
Deferred tax (see below) 19.8 17.3 18.8
------- ------- -------
19.8 18.2 18.8
------- ------- -------
Deferred taxation provision
Deferred tax liability 36.0 30.6 33.2
Effect of discounting (14.3) (13.8) (13.1)
------- ------- -------
Net provision, including deferred
tax on retirement benefit surplus
/(deficit) 21.7 16.8 20.1
Less, attributable to retirement
benefit surplus/(deficit) (1.9) 0.5 (1.3)
Net provision, excluding deferred ------- ------- -------
tax on retirement benefit surplus
/(deficit) 19.8 17.3 18.8
------- ------- -------
Note 10: Retirement benefits
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 Limited 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 trustees.
In accordance with FRS17 actuarial gains and losses are recognised
immediately in the Statement of Total Recognised Gains and Losses.
In summary assets and liabilities under FRS17 were:
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
Market value of section assets 126.3 116.0 125.8
Present value of liabilities (119.9) (117.5) (121.4)
------- ------- -------
Surplus/(deficit) in the section 6.4 (1.5) 4.4
Deferred taxation (1.9) 0.5 (1.3)
------- ------- -------
Net retirement benefit surplus/
(deficit) 4.5 (1.0) 3.1
------- ------- -------
Note 11: Total shareholders' funds
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
Movement in shareholders' funds -
At beginning of period as
previously reported: 62.1 66.7 54.2
Adjustment to initial adoption of
FRS17 - 0.5 -
Effect of adoption of FRS25 - (12.5) -
Effect of adoption of FRS26 - (0.5) -
------- ------- -------
At beginning of period as now
restated 62.1 54.2 54.2
Profit for the period 9.7 6.9 11.6
Ordinary dividends (note 12) (4.9) (6.5) (10.2)
Actuarial gains recognised in
respect of retirement benefit
surplus/(deficit) 1.1 2.7 7.8
Attributable deferred taxation (0.3) (0.7) (2.1)
Charged against operating profit
for equity-settled share based
payments - 0.1 0.2
Attributable taxation - 0.3 0.6
------- ------- -------
End of period 67.7 57.0 62.1
------- ------- -------
Note 12: Ordinary dividends
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
* Dividend in respect of
2004/05:
Final dividend of 88.0 pence per
share, approved at the Annual
General Meeting on 18 July 2005 - 5.3 5.3
* Dividends in respect of
2005/06:
First interim dividend of 19.6
pence per share, approved by the
Board on 29 September 2005 - 1.2 1.2
Second interim dividend of 38.7
pence per share, approved by the
Board on 8 December 2005 - - 2.3
Third interim dividend of 23.5
pence per share, approved by the
Board on 28 March 2006 - - 1.4
Fourth interim and final dividend
of 58.3 pence per share, approved
by the Board on 13 July 2006 3.5 - -
* Dividend in respect of
2006/07:
First interim dividend of 23.6
pence per share, approved by the
Board on 28 September 2006 1.4 - -
--------- ------- -------
4.9 6.5 10.2
--------- ------- -------
No further dividends have been proposed at the date of this report.
Note 13: Supplementary cash flow information
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
a) Reconciliation of operating
profit to net cash inflow from
operating activities -
Operating profit 14.0 13.2 24.9
Depreciation net of amortisation
of deferred income 9.0 8.5 17.9
Difference between pension
charges and normal contributions 0.4 0.4 0.6
Equity-settled share based
payments non-cash charge - 0.1 0.2
------- ------- -------
Cash flow from operations 23.4 22.2 43.6
Working capital movements
Stocks - (0.1) (0.1)
Debtors (4.0) (2.7) (0.5)
Creditors and provisions (1.0) (1.0) 0.6
Additional contributions to
pension scheme, including
payments in respect of staff
retiring early due to
restructuring programme (0.4) (7.0) (8.5)
------- ------- -------
Net cash inflow from operating
activities 18.0 11.4 35.1
------- ------- -------
Six months to Six months to Year to
30 September 30 September 31 March
2006 2005 2006
(unaudited) (unaudited)
(restated)
#m #m #m
b) Reconciliation of net cash flow
to movement in net borrowings -
Increase / (decrease) in cash in the
period 0.6 (0.4) (0.6)
Cash used to repay borrowings 1.7 2.1 4.3
Cash from new borrowings - (57.0) (57.0)
Costs of issue of new loans - 1.1 1.1
(Decrease) / increase in other
investments (7.6) 27.8 29.1
------- ------- -------
Increase in net borrowings (5.3) (26.4) (23.1)
Movement in net debt not
affecting cash flow - indexation
of existing debt and fair value
adjustment to swap (0.5) (0.7) (2.3)
Net borrowings, beginning of
period, including 8.75%
irredeemable cumulative
preference shares (178.7) (153.3) (153.3)
------- ------- -------
Net borrowings, end of period,
including 8.75% irredeemable
cumulative preference shares (184.5) (180.4) (178.7)
------- ------- -------
Note 14: Auditors
Following the acquisition of Bristol Water Group by Agbar, during the
period PricewaterhouseCoopers LLP resigned as auditors and
Deloitte & Touche LLP were appointed in their place.
Note 15: 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
Introduction
We have been instructed by the company to review the financial information for
the six months ended 30 September 2006 which comprises the profit and loss
account, the statement of total recognised gains and losses, the balance sheet,
the cash flow statement and the related notes 1 to 15. 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.
This report is made solely to the company in accordance with Bulletin 1999/4
issued by the Auditing Practices Board. Our work has been undertaken so that we
might state to the company those matters we are required to state to them in an
independent review 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, for our review work, for this report, or for the conclusions we
have formed.
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 are 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 the 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 group 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 International Standards on Auditing (UK and Ireland)
and therefore provides a lower level of assurance than an audit. Accordingly,
we do not express an audit opinion on the financial information.
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 2006.
Deloitte & Touche LLP
Chartered Accountants
Bristol, United Kingdom
30 November 2006
Notes:
(a) A review does not provide assurance on the maintenance and integrity of the
website, including controls used to achieve this, and in particular on
whether any changes may have occurred to the financial information since
first published. These matters are the responsibility of the directors but
no control procedures can provide absolute assurance in this area.
(b) Legislation in the United Kingdom governing the preparation and
dissemination of financial information differs from legislation in other
jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR AKCKBABDDBDB
Bristol Wtr.8t% (LSE:BWRA)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Bristol Wtr.8t% (LSE:BWRA)
Historical Stock Chart
Von Jul 2023 bis Jul 2024
