Half Yearly Report
11 November 2009 - 8:00AM
UK Regulatory
TIDMBWRA
RNS Number : 3069C
Bristol Water PLC
11 November 2009
BRISTOL WATER plc
Announcement of interim results for the six months ended 30 September 2009
Bristol Water plc is a subsidiary of Sociedad General de Aguas de Barcelona S.A.
+------+---------------------------------+--------------------------------------+
| For further information: | |
+----------------------------------------+--------------------------------------+
| Alan Parsons, Managing Director | |
| Stefano Pellegri, 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 | 2009 | | 2008 | |
+-----------------------------------------+-------------+---+-------------+------------+
| | (unaudited) | | (unaudited) | |
+-----------------------------------------+-------------+---+-------------+------------+
| | GBPm | | GBPm | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| Turnover | 49.8 | | 48.9 | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| Operating profit | 14.9 | | 15.0 | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| Profit before taxation | 14.7 | | 10.0 | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| Profit after taxation | 10.7 | | 8.2 | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| Regulatory Capital Value (RCV) - | 264 | | 276 | |
| forecast year end | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| Net debt (excluding 8.75% irredeemable | 74% | | 72% | |
| cumulative preference shares) as | | | | |
| percentage of forecast RCV at year end | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
| | | | | |
+-----------------------------------------+-------------+---+-------------+------------+
* Operating profit GBP14.9m - 1% decrease
* Profit before taxation GBP14.7m - 47% increase reflecting lower interest costs
and loan indexation linked to RPI
* Capital investment of GBP13.0m in the period
* Net debt, excluding irredeemable cumulative preference shares, of GBP196.8m -
approximately 74% of projected RCV at 31 March 2010
Bristol Water plc supplies water to over 1.1 million people and businesses in an
area of almost 2,400 square kilometres centred on Bristol.
CHAIRMAN'S STATEMENT
Introduction
We submitted our Final Business Plan to Ofwat in April 2009, in which we
outlined our proposed pricing and capital expenditure plans for the five years
beginning April 2010. In reply to our submission, Ofwat issued a Draft
Determination in July 2009. In early September 2009 we responded to this Draft
Determination and have continued since then to liaise with Ofwat to enable us to
achieve the best possible outcome for our customers. We currently await the
Final Determination due from Ofwat in late November 2009.
Operational performance
We are only six months from the end of the current regulatory period 2005-10 and
we anticipate full delivery of the outputs required by Ofwat's determination of
price limits for the current period. Three major capital schemes have been
completed:
* A GBP24m project to improve the security of supply for a population of almost
200,000 in the northern and eastern parts of Bristol and surrounding areas. The
new network has already been used three times since completion despite initial
expectations that it would be rarely used. Such resilience schemes are vitally
important to providing the service customers expect in a time of crisis, however
it arises.
* A GBP14m project to upgrade our Banwell treatment works to improve its
effectiveness in dealing with a range of different raw water qualities. The
complexity of the new technology being used is challenging and finalisation of
commissioning and optimisation continues, although treated water has been put
into supply for some time.
* A GBP7m project to construct a new treatment works to treat water from the River
Axe.
In total, we invested GBP13m in capital projects during the period. We currently
anticipate a total investment programme for the current 5-year regulatory period
of approximately GBP171m (at current prices, before grants and contributions).
This is in line with Ofwat's assumptions.
In the October 2009 publication of the Ofwat OPA (Overall Performance
Assessment) for 2008/09 the company scored 97% of the maximum total score but
was only ranked in tenth position out of a total of 21 companies. This is a
disappointment following third position in the previous year and reflects higher
numbers of unplanned interruptions to customer supplies, emphasising the need
for higher levels of mains replacement. We continue to meet our leakage target
and our customer service performance remains at high levels. The latest customer
surveys also continue to show high satisfaction levels. We are pleased to report
that we achieved top position in Ofwat's latest industry wide assessment of
customer satisfaction for handling telephone contact.
Financial performance
Operating profit for the period decreased by GBP0.1m to GBP14.9m. Profit before
tax increased by GBP4.7m to GBP14.7m as a result of lower interest costs.
Net interest charges, excluding those related to retirement benefits and the
preference share dividend, reduced by GBP5.2m from a charge of GBP4.4m to a
credit of GBP0.8m. This mainly reflects the impact of negative RPI on our
indexed-linked debt. In contrast to this, net interest charges in relation to
retirement benefits increased by GBP0.4m compared to the same period last year.
The tax charge of GBP4.0m represents an effective tax rate of 27% (2008: 18%).
The lower charge in the comparative period was a result of higher discount rates
prevailing at 30 September 2008.
Net debt, excluding the irredeemable preference shares, decreased to GBP196.8m
(31 March 2009: GBP201.8m) as a result of negative RPI on index-linked debt and
represents approximately 74% of forecast Regulatory Capital Value at 31 March
2010. As previously indicated we currently anticipate that this ratio will
remain between 70% and 80% for the period to 31 March 2010.
Prospects
In the Directors' Report and Business Review within the company's Annual Report
and Accounts 2009 we set out a summary of the key risks and uncertainties facing
the company. The main risk areas are operational problems, performance and
regulatory requirements and developments.
We anticipate that the results for the second half of the year will include the
following material effects:
* An increase in energy and chemical costs over the previous year due to increased
market prices.
* A continued increase in bad debt charges above 2008/09 levels due to increasing
levels of unemployment.
* Increased reactive maintenance costs due to the winter period and leakage
control.
In July 2009 Ofwat indicated in its Draft Determination of prices that the K
profile for the company would be -1.8% cumulatively in the next five years
beginning April 2010. The company has reviewed this draft and believes that it
is not satisfactory on a number of levels. The company believes that Ofwat's
proposals do not adequately address the needs of our customers. Accordingly, it
has submitted a robust response. The company and the Board expects that Ofwat
will address these concerns in the Final Determination due to be published on 26
November. The company has the opportunity to appeal the Final Determination to
the Competition Commission. An announcement will be made after the Board has had
the opportunity to consider fully the Final Determination.
In concluding on the appropriateness of adopting the going concern basis in
preparing the interim financial statements, the Directors have considered the
above factors together with the company's cash position and are satisfied that
the company has adequate funding in place to cover its committed capital
expenditure programme and current working capital requirements together with the
maintenance of an appropriate capital programme until matters regarding the
Final Determination are finalised. As noted above, the Directors are of the
opinion, that bearing in mind their understanding of Ofwat's legal duties, the
company's concerns regarding the Draft Determination should be satisfactorily
resolved, if necessary by the Competition Commission. Accordingly they continue
to adopt the going concern basis in preparing the interim financial statements.
Dividends
The company policy is to pay an annual level of ordinary dividends comprising:
* A base level reflecting the cost of capital allowed by Ofwat in the 5-year
determination of price limits, adjusted to reflect actual gearing levels and
where appropriate actual performance relative to Ofwat's assumptions.
* An amount equal to the post-tax interest receivable from Agbar UK Limited
(formerly Bristol Water Group Ltd - the ultimate UK parent company) in respect
of intercompany loans.
During the period an interim ordinary dividend of GBP1.5m in respect of the
2009/10 interest element of the intercompany loan was paid.
A final dividend of GBP3.6m in respect of 2008/09 was approved at the last
Annual General Meeting. It was paid on 29 September 2009.
A second interim ordinary of GBP3.7m in respect of 2009/10 was approved by the
Board on 11 November 2009 and will be paid subsequently.
Board membership
We welcome Miquel Anglada Gali who has been appointed to the Board as an
executive director on 12 October 2009.
Moger Woolley
Chairman
11 November 2009
PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2009
+-------------+------------------+--------+--------+--------+--------+--------+--------+--------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------------------------------+--------+ + + +
| | | | | |
+--------------------------------+--------+ + + +
| | | | | |
+--------------------------------+--------+ + + +
| | | | | |
+--------------------------------+--------+ + + +
| | | | | |
+--------------------------------+--------+-----------------+-----------------+-----------------+
| | Note | | GBPm | | GBPm | | GBPm |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Turnover | 2 | | 49.8 | | 48.9 | | 96.7 |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Operating costs | 3 | | (34.9) | | (33.9) | | (67.6) |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Operating | | | 14.9 | | 15.0 | | 29.1 |
| profit | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Other net | | | | | | | |
| interest | | | | | | | |
| receivable/(payable) | | | | | | | |
| and similar | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | income/(charges) | 4 | | 0.8 | | (4.4) | | (10.4) |
+-------------+------------------+--------+--------+--------+--------+--------+--------+--------+
| Dividends on | | | | | | | |
| 8.75% | | | | | | | |
| irredeemable | | | | | | | |
| cumulative | | | | | | | |
| preference | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | shares | | | (0.5) | | (0.5) | | (1.1) |
+-------------+------------------+--------+--------+--------+--------+--------+--------+--------+
| Interest in | | | (0.5) | | (0.1) | | (0.2) |
| respect of | | | | | | | |
| retirement | | | | | | | |
| benefit scheme | | | | | | | |
| surplus | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Net interest | | | (0.2) | | (5.0) | | (11.7) |
| payable and | | | | | | | |
| similar charges | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Profit on | | | 14.7 | | 10.0 | | 17.4 |
| ordinary | | | | | | | |
| activities | | | | | | | |
| before taxation | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Tax on profit | 5 | | (4.0) | | (1.8) | | (5.3) |
| on ordinary | | | | | | | |
| activities | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Profit on | | | 10.7 | | 8.2 | | 12.1 |
| ordinary | | | | | | | |
| activities | | | | | | | |
| after taxation | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| Earnings per | 6 | | 178.3p | | 136.3p | | 201.7p |
| ordinary share | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------------------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+-------------+------------------+--------+--------+--------+--------+--------+--------+--------+
All activities above relate to the continuing activities 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 2009
+--------+-------------+--------+--------+--------+--------+--------+--------+--------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+----------------------+--------+ + + +
| | | | | |
+----------------------+--------+ + + +
| | | | | |
+----------------------+--------+ + + +
| | | | | |
+----------------------+--------+ + + +
| | | | | |
+----------------------+--------+-----------------+-----------------+-----------------+
| | Note | | GBPm | | GBPm | | GBPm |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| Profit | | | 10.7 | | 8.2 | | 12.1 |
| attributable to | | | | | | | |
| Bristol Water | | | | | | | |
| plc | | | | | | | |
| shareholders | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| Actuarial | | | | | | | |
| gains/(losses) | | | | | | | |
| recognised in | | | | | | | |
| respect of | | | | | | | |
| retirement | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| | benefit | 10,11 | | 2.6 | | (0.4) | | (5.8) |
| | obligations | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+--------+
| Attributable | 10,11 | | (0.7) | | 0.1 | | 1.6 |
| deferred | | | | | | | |
| taxation | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| Change in the | 11 | | 0.4 | | - | | (1.2) |
| fair value of | | | | | | | |
| the interest | | | | | | | |
| rate swap | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| Attributable | 11 | | (0.1) | | - | | 0.3 |
| deferred | | | | | | | |
| taxation | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| Total | | | 12.9 | | 7.9 | | 7.0 |
| recognised | | | | | | | |
| gains for the | | | | | | | |
| period | | | | | | | |
+----------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+--------+
The accompanying notes to the accounts form an integral part of this statement.
BALANCE SHEET
30 September 2009
+---------------+----------------+--------+--------+---------+--------+----------+--------+---------+
| | | At | At | At |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------------------------------+--------+------------------+-------------------+------------------+
| | Note | | GBPm | | GBPm | | GBPm |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Fixed assets | 7 | | 252.4 | | 247.4 | | 251.7 |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Investment - Loans to ultimate | | 68.5 | | 68.5 | | 68.5 |
| UK holding company | | | | | | |
+-----------------------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Current assets | | | | | | | |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Stocks | | | 1.0 | | 1.0 | | 1.1 |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Debtors | | | 25.3 | | 25.5 | | 21.6 |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Investments | 8 | | 19.5 | | 24.4 | | 19.4 |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Cash at bank and in | 8 | | 0.4 | | 1.1 | | 1.2 |
| hand | | | | | | | |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| | | | 46.2 | | 52.0 | | 43.3 |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+--------------------------------+--------+--------+---------+--------+----------+--------+---------+
| Creditors: amounts falling due | | | | | | |
| within one year | | | | | | |
+-----------------------------------------+--------+---------+--------+----------+--------+---------+
| Short-term | 8 | | (2.5) | | (17.2) | | (2.2) |
| borrowings | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Ordinary | 12 | | - | | (3.2) | | - |
| dividends | | | | | | | |
| approved | | | | | | | |
| but not | | | | | | | |
| paid at | | | | | | | |
| period | | | | | | | |
| end | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Other | | | (26.4) | | (26.5) | | (25.0) |
| creditors | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | (28.9) | | (46.9) | | (27.2) |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Net | | | 17.3 | | 5.1 | | 16.1 |
| current | | | | | | | |
| assets | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Total | | | 338.2 | | 321.0 | | 336.3 |
| assets | | | | | | | |
| less | | | | | | | |
| current | | | | | | | |
| liabilities | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Creditors: | | | | | | | |
| amounts | | | | | | | |
| falling | | | | | | | |
| due after | | | | | | | |
| more than | | | | | | | |
| one year | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Borrowings | 8 | | (214.2) | | (205.7) | | (220.2) |
| and | | | | | | | |
| derivatives | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Other | | | (0.1) | | (0.2) | | (0.2) |
| creditors | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | (214.3) | | (205.9) | | (220.4) |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| 8.75% | 8 | | (12.5) | | (12.5) | | (12.5) |
| irredeemable | | | | | | | |
| cumulative | | | | | | | |
| preference | | | | | | | |
| shares | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Deferred | | | (10.2) | | (10.2) | | (10.2) |
| income | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Provision | 9 | | (25.0) | | (20.7) | | (22.8) |
| for | | | | | | | |
| liabilities | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Retirement | 10 | | 8.3 | | 10.0 | | 6.3 |
| benefit | | | | | | | |
| surplus | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Net | | | 84.5 | | 81.7 | | 76.7 |
| assets | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Capital | | | | | | | |
| and | | | | | | | |
| reserves | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Called-up | | | 6.0 | | 6.0 | | 6.0 |
| share | | | | | | | |
| capital | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Share | | | 4.4 | | 4.4 | | 4.4 |
| premium | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Other | | | 5.2 | | 5.8 | | 4.9 |
| reserves | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Profit | | | 68.9 | | 65.5 | | 61.4 |
| and | | | | | | | |
| loss | | | | | | | |
| account | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| Shareholders' | 11 | | 84.5 | | 81.7 | | 76.7 |
| funds | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+-------------------------+--------+---------+--------+----------+--------+---------+
| | | | | | | | |
+---------------+----------------+--------+--------+---------+--------+----------+--------+---------+
The accompanying notes to the accounts form an integral part of this statement.
CASH FLOW STATEMENT
For the six months ended 30 September 2009
+--------+------------+--------+--------+--------+--------+--------+--------+--------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+---------------------+--------+ + + +
| | | | | |
+---------------------+--------+ + + +
| | | | | |
+---------------------+--------+ + + +
| | | | | |
+---------------------+--------+-----------------+-----------------+-----------------+
| | Note | | GBPm | | GBPm | | GBPm |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Net cash inflow | 13 | | 21.7 | | 21.2 | | 47.5 |
| from operating | | | | | | | |
| activities | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Returns on | | | | | | | |
| investments and | | | | | | | |
| servicing of | | | | | | | |
| finance | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Interest | | | 2.2 | | 2.6 | | 5.1 |
| received | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Interest paid | | | (4.2) | | (4.9) | | (9.7) |
| on term loans | | | | | | | |
| and debentures | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Interest paid | | | (0.9) | | (0.9) | | (0.9) |
| on finance | | | | | | | |
| leases | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Dividends paid | | | | | | | |
| on 8.75% | | | | | | | |
| irredeemable | | | | | | | |
| cumulative | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | preference | | | (0.5) | | (0.5) | | (1.1) |
| | shares | | | | | | | |
+--------+------------+--------+--------+--------+--------+--------+--------+--------+
| | | | (3.4) | | (3.7) | | (6.6) |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Taxation | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Corporation tax | | | (0.7) | | - | | (2.1) |
| paid | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Capital | | | | | | | |
| expenditure and | | | | | | | |
| investing | | | | | | | |
| activities | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Purchase of | | | (13.6) | | (17.2) | | (32.6) |
| tangible fixed | | | | | | | |
| assets | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Contributions | | | 2.4 | | 2.1 | | 3.6 |
| received | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Proceeds on | | | 0.2 | | - | | - |
| sale of fixed | | | | | | | |
| assets | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | (11.0) | | (15.1) | | (29.0) |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Equity | | | (5.1) | | (1.5) | | (8.8) |
| dividends paid | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Cash inflow | | | | | | | |
| before | | | | | | | |
| management of | | | | | | | |
| liquid | | | | | | | |
| resources | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | and | | | 1.5 | | 0.9 | | 1.0 |
| | financing | | | | | | | |
+--------+------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Management of | | | | | | | |
| liquid | | | | | | | |
| resources | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Being | | | (0.1) | | (3.1) | | 1.9 |
| (increase) / | | | | | | | |
| decrease in | | | | | | | |
| short-term | | | | | | | |
| deposits | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Financing | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| New term loans | | | - | | 5.0 | | 15.0 |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Capital element | | | (2.2) | | (1.9) | | (1.9) |
| of lease | | | | | | | |
| repayments | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Loan repayments | | | - | | - | | (15.0) |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | (2.2) | | 3.1 | | (1.9) |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| (Decrease) / | 13 | | (0.8) | | 0.9 | | 1.0 |
| increase in | | | | | | | |
| cash | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Cash, beginning | | | 1.2 | | 0.2 | | 0.2 |
| of period | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| Cash, end of | | | 0.4 | | 1.1 | | 1.2 |
| period | | | | | | | |
+---------------------+--------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+------------+--------+--------+--------+--------+--------+--------+--------+
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 2009
+--------+--------------+
| Note | Accounting |
| 1: | policies |
+--------+--------------+
| | The |
| | financial |
| | information |
| | contained |
| | in this |
| | interim |
| | announcement |
| | does not |
| | constitute |
| | statutory |
| | accounts |
| | within the |
| | meaning of |
| | section 435 |
| | of the |
| | Companies |
| | Act 2006. |
| | The interim |
| | 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 2009 |
| | 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 s.237 |
| | (2) or (3) |
| | of the |
| | Companies |
| | Act 1985. |
| | As outlined |
| | in the |
| | company's |
| | Annual |
| | Report and |
| | Accounts for |
| | the year |
| | ended 31 |
| | March 2009, |
| | the company |
| | is not |
| | required to, |
| | and does not |
| | intend to, |
| | adopt IFRS |
| | until UK |
| | GAAP and |
| | IFRS are |
| | fully |
| | harmonised. |
| | The company |
| | has prepared |
| | the interim |
| | results on |
| | the going |
| | concern |
| | basis. The |
| | prospects of |
| | the company |
| | are |
| | discussed in |
| | the |
| | Chairman's |
| | Statement. |
+--------+--------------+
+--------+------------+
| Note | Turnover |
| 2: | |
+--------+------------+
| | 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 | Operating costs |
| 3: | |
+--------+-------------------------------------------------------------------------------+
| | | | | |
+--------+-------------------------+-----------------+-----------------+-----------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+-------------------------+ + + +
| | | | | |
+--------+-------------------------+-----------------+-----------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+-------------------------+--------+--------+--------+--------+--------+--------+
| | Operating costs | | | | | | |
| | comprise - | | | | | | |
+--------+-------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------------------+--------+--------+--------+--------+--------+--------+
| | Payroll cost, net of recharges | | | | | |
| | to fixed assets and including | | | | | |
+--------+----------------------------------+--------+--------+--------+--------+--------+
| | | retirement benefit | 6.3 | | 6.7 | | 13.1 |
| | | costs | | | | | |
+--------+--------+-------------------------+--------+--------+--------+--------+--------+
| | Depreciation, net of | 10.0 | | 10.5 | | 20.3 |
| | amortisation of deferred income | | | | | |
+--------+----------------------------------+--------+--------+--------+--------+--------+
| | Other operating costs | | 18.6 | | 16.7 | | 34.2 |
+--------+-------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------------------+--------+--------+--------+--------+--------+--------+
| | | | 34.9 | | 33.9 | | 67.6 |
+--------+-------------------------+--------+--------+--------+--------+--------+--------+
| | |
+--------+--------+----------------+--------+--------+--------+--------+--------+--------+
+--------+-------------+-------------+--------+--------+--------+--------+--------+--------+
| Note | Net interest payable and similar charges |
| 4: | |
+--------+---------------------------------------------------------------------------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2008 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+---------------------------+ + + +
| | | | | |
+--------+---------------------------+ + + +
| | | | | |
+--------+---------------------------+ + + +
| | | | | |
+--------+---------------------------+-----------------+-----------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Other net | | | | | | |
| | interest | | | | | | |
| | (receivable)/payable | | | | | | |
| | and similar | | | | | | |
| | (income)/charges | | | | | | |
| | relate to - | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Bank borrowings | | 0.4 | | 1.4 | | 2.3 |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Term loans and | | 3.6 | | 3.6 | | 7.2 |
| | debentures - | | | | | | |
| | interest | | | | | | |
| | charges | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | | (3.1) | | 1.7 | | 5.0 |
| | - indexation | | | | | | |
| | (credit)/charge | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Finance leases | | 0.4 | | 0.4 | | 0.9 |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | | 1.3 | | 7.1 | | 15.4 |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Less: | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | Loan | | (2.0) | | (2.0) | | (4.0) |
| | | to | | | | | | |
| | | Agbar | | | | | | |
| | | UK Ltd | | | | | | |
| | | (formerly | | | | | | |
| | | Bristol | | | | | | |
| | | Water | | | | | | |
| | | Group | | | | | | |
| | | Ltd) - | | | | | | |
| | | interest | | | | | | |
| | | receivable | | | | | | |
+--------+-------------+-------------+--------+--------+--------+--------+--------+--------+
| | | Other | | (0.1) | | (0.7) | | (1.0) |
| | | external | | | | | | |
| | | investments | | | | | | |
| | | and | | | | | | |
| | | deposits | | | | | | |
+--------+-------------+-------------+--------+--------+--------+--------+--------+--------+
| | | | (2.1) | | (2.7) | | (5.0) |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Total other net | | (0.8) | | 4.4 | | 10.4 |
| | interest | | | | | | |
| | (receivable)/payable | | | | | | |
| | and similar | | | | | | |
| | (income)/charges | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | Dividends on | | | | | | |
| | 8.75% | | | | | | |
| | irredeemable | | | | | | |
| | cumulative | | | | | | |
| | preference | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | shares | | 0.5 | | 0.5 | | 1.1 |
+--------+-------------+-------------+--------+--------+--------+--------+--------+--------+
| | Interest charge | | | | | | |
| | in respect of | | | | | | |
| | retirement | | | | | | |
| | benefit scheme | | | | | | |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | surplus | | 0.5 | | 0.1 | | 0.2 |
+--------+-------------+-------------+--------+--------+--------+--------+--------+--------+
| | | | 0.2 | | 5.0 | | 11.7 |
+--------+---------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------+-------------+--------+--------+--------+--------+--------+--------+
+--------+-------------+--------+--------+--------+--------+--------+--------+
| Note | Tax on profit on ordinary activities |
| 5: | |
+--------+-------------------------------------------------------------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+-------------+ + + +
| | | | | |
+--------+-------------+ + + +
| | | | | |
+--------+-------------+ + + +
| | | | | |
+--------+-------------+-----------------+-----------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | The | | | | | | |
| | charge | | | | | | |
| | for | | | | | | |
| | taxation | | | | | | |
| | comprises | | | | | | |
| | - | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Current | | | | | | |
| | tax: | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Corporation | | 1.8 | | 1.4 | | 2.5 |
| | tax at 28% | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Adjustments | | - | | - | | (0.1) |
| | to prior | | | | | | |
| | periods | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Total | | 1.8 | | 1.4 | | 2.4 |
| | current | | | | | | |
| | tax | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Deferred | | | | | | |
| | tax: | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Current | | 2.5 | | 1.6 | | 2.7 |
| | period | | | | | | |
| | movement | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Adjustments | | - | | - | | 0.1 |
| | to prior | | | | | | |
| | periods | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Effect | | (0.3) | | (1.2) | | 0.1 |
| | of | | | | | | |
| | discounting | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Total | | 2.2 | | 0.4 | | 2.9 |
| | deferred | | | | | | |
| | tax | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | Total tax on | 4.0 | | 1.8 | | 5.3 |
| | profit on | | | | | |
| | ordinary | | | | | |
| | activities | | | | | |
+--------+----------------------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+-------------+--------+--------+--------+--------+--------+--------+
| | The overall tax charge represents 27% (six months to 30 |
| | September 2008: 18%; year ended 31 March 2009: 30%) of the |
| | profit before taxation. The deferred tax charge at 30 |
| | September 2008 is lower than the other comparative periods |
| | due to higher discount rates prevailing at that date. |
+--------+-------------+--------+--------+--------+--------+--------+--------+
+--------+------------+--------+---------+--------+--------+--------+---------+
| Note | Earnings per ordinary share |
| 6: | |
+--------+--------------------------------------------------------------------+
| | |
+--------+--------------------------------------------------------------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+------------+ + + +
| | | | | |
+--------+------------+ + + +
| | | | | |
+--------+------------+ + + +
| | | | | |
+--------+------------+------------------+-----------------+------------------+
| | | | m | | m | | m |
+--------+------------+--------+---------+--------+--------+--------+---------+
| | Earnings | | | | | | |
| | per | | | | | | |
| | share | | | | | | |
| | have | | | | | | |
| | been | | | | | | |
| | calculated | | | | | | |
| | as follows | | | | | | |
| | - | | | | | | |
| | | | | | | | |
+--------+------------+--------+---------+--------+--------+--------+---------+
| | Earnings | | GBP10.7 | | GBP8.2 | | GBP12.1 |
+--------+------------+--------+---------+--------+--------+--------+---------+
| | | | | | | | |
+--------+------------+--------+---------+--------+--------+--------+---------+
| | Weighted | | 6.0 | | 6.0 | | 6.0 |
| | average | | | | | | |
| | number | | | | | | |
| | of | | | | | | |
| | ordinary | | | | | | |
| | shares | | | | | | |
| | in issue | | | | | | |
+--------+------------+--------+---------+--------+--------+--------+---------+
| | | | | | | | |
+--------+------------+--------+---------+--------+--------+--------+---------+
+--------+---------------+--------+--------+--------+--------+--------+--------+
| Note | Fixed assets |
| 7: | |
+--------+---------------------------------------------------------------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
+--------+---------------+ + + +
| | | | | |
+--------+---------------+ + + +
| | | | | |
+--------+---------------+ + + +
| | | | | |
+--------+---------------+-----------------+-----------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | The movement in fixed | | | | |
| | assets comprises - | | | | |
+--------+---------------------------------+--------+--------+--------+--------+
| | Net | | 251.7 | | 244.1 | | 244.1 |
| | book | | | | | | |
| | value, | | | | | | |
| | beginning | | | | | | |
| | of period | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | Additions | | 13.0 | | 15.7 | | 31.3 |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | Grants | | (2.1) | | (1.7) | | (2.9) |
| | and | | | | | | |
| | contributions | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | Depreciation | | (10.2) | | (10.7) | | (20.8) |
| | charge for | | | | | | |
| | period | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | Net | | 252.4 | | 247.4 | | 251.7 |
| | book | | | | | | |
| | value, | | | | | | |
| | end of | | | | | | |
| | period | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------+--------+--------+--------+--------+--------+--------+
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
| Note | Net borrowings |
| 8: | |
+--------+-------------------------------------------------------------------------------+
| | | At | At | At |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+-----------------------+ + + +
| | | | | |
+--------+-----------------------+ + + +
| | | | | |
+--------+-----------------------+ + + +
| | | | | |
+--------+-----------------------+------------------+------------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Net borrowings | | | | | | |
| | comprise - | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Debt due after | | | | | | |
| | one year, | | | | | | |
| | excluding 8.75% | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | irredeemable | | 214.2 | | 205.7 | | 220.2 |
| | | cumulative | | | | | | |
| | | preference | | | | | | |
| | | shares | | | | | | |
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
| | Current portion | | 2.5 | | 2.2 | | 2.2 |
| | of debt | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Current portion | | - | | 15.0 | | - |
| | of bank loans | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | | 216.7 | | 222.9 | | 222.4 |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Cash balances and | (19.9) | | (25.5) | | (20.6) |
| | investments | | | | | |
+--------+--------------------------------+---------+--------+---------+--------+--------+
| | Net borrowings excluding | | | | | |
| | 8.75% irredeemable | | | | | |
+--------+--------------------------------+---------+--------+---------+--------+--------+
| | | cumulative | 196.8 | | 197.4 | | 201.8 |
| | | preference | | | | | |
| | | shares | | | | | |
+--------+--------+-----------------------+---------+--------+---------+--------+--------+
| | | | | | | |
+--------+--------------------------------+---------+--------+---------+--------+--------+
| | 8.75% irredeemable | 12.5 | | 12.5 | | 12.5 |
| | cumulative preference | | | | | |
| | shares | | | | | |
+--------+--------------------------------+---------+--------+---------+--------+--------+
| | Net borrowings | | 209.3 | | 209.9 | | 214.3 |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | | | | | | |
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
| Note | Provision for liabilities |
| 9: | |
+--------+-------------------------------------------------------------------------------+
| | | At | At | At |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+-----------------------+ + + +
| | | | | |
+--------+-----------------------+ + + +
| | | | | |
+--------+-----------------------+ + + +
| | | | | |
+--------+-----------------------+------------------+------------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Deferred tax | | 43.0 | | 39.8 | | 39.7 |
| | liability | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Effect of | | (14.8) | | (15.2) | | (14.5) |
| | discounting | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Net provision, | | | | | | |
| | including | | | | | | |
| | deferred tax on | | | | | | |
| | retirement | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | obligations | | 28.2 | | 24.6 | | 25.2 |
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
| | | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | Less, | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | attributable | | (3.2) | | (3.9) | | (2.4) |
| | | to | | | | | | |
| | | retirement | | | | | | |
| | | benefit | | | | | | |
| | | obligations | | | | | | |
| | | (note 10) | | | | | | |
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
| | Net provision, | | | | | | |
| | excluding | | | | | | |
| | deferred tax on | | | | | | |
| | retirement | | | | | | |
+--------+-----------------------+--------+---------+--------+---------+--------+--------+
| | | benefit | | 25.0 | | 20.7 | | 22.8 |
| | | obligations | | | | | | |
+--------+--------+--------------+--------+---------+--------+---------+--------+--------+
+--------+---------------+
| Note | Retirement |
| 10: | 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. The |
| | company's |
| | membership |
| | of WCPS is |
| | through a |
| | separate |
| | section of |
| | the scheme. |
| | The assets |
| | of the |
| | section are |
| | held |
| | separately |
| | from those |
| | of the |
| | company and |
| | are invested |
| | by |
| | discretionary |
| | fund managers |
| | appointed by |
| | the trustees |
| | of the |
| | scheme. The |
| | section has |
| | been closed |
| | to new |
| | entrants and |
| | all new |
| | eligible |
| | employees are |
| | offered |
| | membership of |
| | a stakeholder |
| | pension |
| | scheme. |
| | In addition |
| | to providing |
| | benefits to |
| | employees and |
| | ex-employees |
| | of Bristol |
| | Water plc, |
| | the section |
| | provides |
| | benefits to |
| | 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. |
| | In 2005/06, |
| | in connection |
| | with new |
| | financing and |
| | the return to |
| | shareholders |
| | by the then |
| | ultimate |
| | parent |
| | company, the |
| | company made |
| | a one-off |
| | contribution |
| | to WCPS of |
| | GBP7.0m. The |
| | company also |
| | agreed to |
| | make |
| | additional |
| | contributions |
| | of GBP1.0m in |
| | each of the |
| | four years |
| | beginning 1 |
| | April 2006 |
| | and a further |
| | GBP0.9m in |
| | 2010/11. The |
| | amounts are |
| | in addition |
| | to the normal |
| | pension |
| | contributions |
| | required by |
| | the WCPS |
| | trustees. |
| | In accordance |
| | with FRS 17 |
| | actuarial |
| | gains and |
| | losses are |
| | recognised |
| | immediately |
| | in the |
| | Statement of |
| | Total |
| | Recognised |
| | Gains and |
| | Losses. |
+--------+---------------+
+--------+--------+-------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+--------+
| | In summary assets and liabilities under FRS 17 were: |
+--------+-------------------------------------------------------------------------------------------+
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | GBPm |
| | | GBPm | GBPm | |
+--------+----------------+ + + +
| | | | | |
+--------+----------------+ + + +
| | | | | |
+--------+----------------+-----------------------+-----------------------+--------------------------+
| | | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | Market value | | 137.2 | | 133.1 | | 123.8 |
| | of section | | | | | | |
| | assets | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | Present | | (125.7) | | (118.5) | | (106.2) |
| | value of | | | | | | |
| | liabilities | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | Surplus in | | 11.5 | | 14.6 | | 17.6 |
| | the section | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | Restriction | | - | | (0.7) | | (8.9) |
| | of surplus | | | | | | |
| | due to asset | | | | | | |
| | limit under | | | | | | |
| | FRS 17 | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | | | 11.5 | | 13.9 | | 8.7 |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | Deferred | | (3.2) | | (3.9) | | (2.4) |
| | taxation | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | Net | | 8.3 | | 10.0 | | 6.3 |
| | retirement | | | | | | |
| | benefit | | | | | | |
| | surplus | | | | | | |
+--------+----------------+-----------+-----------+-----------+-----------+-----------+--------------+
| | |
+--------+-------------------------------------------------------------------------------------------+
| | |
+--------+-------------------------------------------------------------------------------------------+
| Note | Shareholders' funds |
| 11: | |
+--------+-------------------------------------------------------------------------------------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+----------------------+ + + +
| | | | | |
+--------+----------------------+ + + +
| | | | | |
+--------+----------------------+ + + +
| | | | | |
+--------+----------------------+-----------------------+-----------------------+--------------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Movement in | | | | | | |
| | shareholders' | | | | | | |
| | funds - | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | At beginning of | | 76.7 | | 78.5 | | 78.5 |
| | period | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Profit for the | | 10.7 | | 8.2 | | 12.1 |
| | period | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Actuarial | | | | | | |
| | gains/(losses) | | | | | | |
| | recognised in | | | | | | |
| | respect of | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | retirement | | 2.6 | | (0.4) | | (5.8) |
| | | benefit | | | | | | |
| | | obligations | | | | | | |
+--------+--------+-------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Attributable | | (0.7) | | 0.1 | | 1.6 |
| | deferred taxation | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Fair value of | | 0.4 | | - | | (1.2) |
| | interest rate swap | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Attributable | | (0.1) | | - | | 0.3 |
| | deferred taxation | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | Ordinary dividends | | (5.1) | | (4.7) | | (8.8) |
| | (note 12) | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | | | | | | | |
+--------+----------------------+-----------+-----------+-----------+-----------+-----------+--------+
| | End of period | | 84.5 | | 81.7 | | 76.7 |
+--------+--------+-------+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+-----+--------+
+--------+---+---+---+---+---+---+---+---+--------+-------------+--------+--------+--------+--------+
| Note | Ordinary dividends |
| 12: | |
+--------+------------------------------------------------------------------------------------------+
| | | Six | Six months to | Year to |
| | | months | 30 September | 31 March |
| | | to | 2008 | 2009 |
| | | 30 | (unaudited) | |
| | | September | | |
| | | 2009 | | |
| | | (unaudited) | | |
+--------+----------------------------------------+ + + +
| | | | | |
+--------+----------------------------------------+-------------+-----------------+-----------------+
| | | GBPm | | GBPm | | GBPm |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | * Dividends in respect of 2007/08: | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | Final dividend of 53.35 pence | | | | | |
| | per share, | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | approved by the Board on 4 | - | | 3.2 | | 3.2 |
| | August 2008 | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | * Dividends in respect of 2008/09: | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | First interim dividend of 24.27 | | | | | |
| | pence per share, | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | approved by the Board on 26 | - | | 1.5 | | 1.5 |
| | September 2008 | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | Second interim dividend of 45.02 | | | | | |
| | pence per share, | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | approved by the Board on 24 | - | | - | | 2.7 |
| | November 2008 | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | Third interim dividend of 24.14 | | | | | |
| | pence per share, | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | approved by the Board on 30 | - | | - | | 1.4 |
| | March 2009 | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | Final dividend of 60.02 pence | | | | | |
| | per share, approved | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | by the Board on 3 August | 3.6 | | - | | - |
| | 2009 | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | * Dividends in respect of 2009/10: | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | First interim dividend of 24.27 | | | | | |
| | pence per share, | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | approved by the Board on 28 | 1.5 | | - | | - |
| | September 2009 | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | | | | | | |
+--------+----------------------------------------+-------------+--------+--------+--------+--------+
| | | | 5.1 | | 4.7 | | 8.8 |
+--------+---+---+---+---+---+---+---+---+--------+-------------+--------+--------+--------+--------+
+--------+---------------+
| | A |
| | second |
| | interim |
| | ordinary |
| | dividend |
| | for |
| | 2009/10 |
| | of 61.69 |
| | pence |
| | per |
| | share |
| | totalling |
| | GBP3.7m |
| | was |
| | approved |
| | by the |
| | Board on |
| | 11 |
| | November |
| | 2009 and |
| | will be |
| | paid |
| | subsequently. |
| | In accordance |
| | with |
| | Financial |
| | Reporting |
| | Standard 21 |
| | "Events after |
| | the balance |
| | sheet date" |
| | this amount |
| | has not been |
| | provided for |
| | in these |
| | interim |
| | financial |
| | statements. |
+--------+---------------+
+--------+--------+--------+---------------+--------+--------+--------+--------+--------+--------+
| Note | Supplementary cash flow information |
| 13: | |
+--------+---------------------------------------------------------------------------------------+
| | | Six months to | Six months to | Year to |
| | | 30 September | 30 September | 31 March |
| | | 2009 | 2008 | 2009 |
| | | (unaudited) | (unaudited) | |
| | | | | |
+--------+---------------------------------+ + + +
| | | | | |
+--------+---------------------------------+ + + +
| | | | | |
+--------+---------------------------------+ + + +
| | | | | |
+--------+---------------------------------+-----------------+-----------------+-----------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+---------------------------------+--------+--------+--------+--------+--------+--------+
| | a) | Reconciliation | | | | | | |
| | | of operating | | | | | | |
| | | profit to net | | | | | | |
| | | cash inflow | | | | | | |
| | | from operating | | | | | | |
| | | activities - | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Operating | | 14.9 | | 15.0 | | 29.1 |
| | | profit | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Depreciation, | | | | | | |
| | | net of | | | | | | |
| | | amortisation of | | | | | | |
| | | deferred | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | | income | | 10.0 | | 10.5 | | 20.3 |
+--------+--------+--------+---------------+--------+--------+--------+--------+--------+--------+
| | | Difference | | | | | | |
| | | between pension | | | | | | |
| | | charges and | | | | | | |
| | | normal | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | | contributions | | (0.2) | | 0.2 | | 0.2 |
+--------+--------+--------+---------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------------------------+--------+--------+--------+--------+--------+--------+
| | | Cash flow from | | 24.7 | | 25.7 | | 49.6 |
| | | operations | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Working capital | | | | | | |
| | | movements: | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Stocks | | - | | (0.1) | | (0.2) |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Debtors | | (3.7) | | (4.4) | | (0.7) |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Creditors and | | 1.2 | | 0.5 | | (0.2) |
| | | provisions | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | Additional | | (0.5) | | (0.5) | | (1.0) |
| | | contributions | | | | | | |
| | | to pension | | | | | | |
| | | scheme | | | | | | |
+--------+--------+------------------------+--------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+---------------------------------+--------+--------+--------+--------+--------+--------+
| | | Net cash inflow from | 21.7 | | 21.2 | | 47.5 |
| | | operating activities | | | | | |
+--------+--------+---------------------------------+--------+--------+--------+--------+--------+
| | | | | | | | |
+--------+--------+--------+---------------+--------+--------+--------+--------+--------+--------+
+--------+--------+--------+--------------+--------+---------+--------+---------+--------+---------+
| | Six months to | Six months to | Year to |
| | 30 September | 30 September | 31 March |
| | 2009 | 2008 | 2009 |
| | (unaudited) | (unaudited) | |
| | | | |
+-----------------------------------------+ + + +
| | | | | |
+--------+ + + +----------------------------+
| | | | | |
+--------+ + + +----------------------------+
| | | | | |
+--------+-----------------+-----------------------+------------------+----------------------------+
| | | | GBPm | | GBPm | | GBPm |
+--------+--------------------------------+--------+---------+--------+---------+--------+---------+
| | | | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | b) | Reconciliation | | | | | | |
| | | of net cash | | | | | | |
| | | flow to | | | | | | |
| | | movement in net | | | | | | |
| | | borrowings - | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | (Decrease)/increase in | (0.8) | | 0.9 | | 1.0 |
| | | net cash in the period | | | | | |
+--------+--------+--------------------------------+---------+--------+---------+--------+---------+
| | | Cash used to repay | 2.2 | | 1.9 | | 16.9 |
| | | borrowings | | | | | |
+--------+--------+--------------------------------+---------+--------+---------+--------+---------+
| | | Cash from new borrowings | - | | (5.0) | | (15.0) |
+--------+--------+--------------------------------+---------+--------+---------+--------+---------+
| | | Cash from decrease in | 0.1 | | 3.1 | | (1.9) |
| | | short-term deposits | | | | | |
+--------+--------+--------------------------------+---------+--------+---------+--------+---------+
| | | | | | | | |
+--------+--------------------------------+--------+---------+--------+---------+--------+---------+
| | | Decrease in net | | 1.5 | | 0.9 | | 1.0 |
| | | borrowings | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | Indexation not | | 3.1 | | (1.7) | | (5.0) |
| | | affecting cash | | | | | | |
| | | flow | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | Fair value of | | | | | | |
| | | interest rate | | | | | | |
| | | swap not | | | | | | |
| | | affecting cash | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | | flow | | 0.4 | | - | | (1.2) |
+--------+--------+--------+--------------+--------+---------+--------+---------+--------+---------+
| | | Net borrowings, | | | | | | |
| | | beginning of | | | | | | |
| | | period, | | | | | | |
| | | including | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | | 8.75% | | | | | | |
| | | | irredeemable | | | | | | |
| | | | cumulative | | | | | | |
| | | | preference | | | | | | |
+--------+--------+--------+--------------+--------+---------+--------+---------+--------+---------+
| | | | shares | | (214.3) | | (209.1) | | (209.1) |
+--------+--------+--------+--------------+--------+---------+--------+---------+--------+---------+
| | | | | | | | |
+--------+--------------------------------+--------+---------+--------+---------+--------+---------+
| | | Net borrowings, | | | | | | |
| | | end of period, | | | | | | |
| | | including 8.75% | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | | irredeemable | | (209.3) | | (209.9) | | (214.3) |
| | | | cumulative | | | | | | |
| | | | preference | | | | | | |
| | | | shares | | | | | | |
+--------+--------+--------+--------------+--------+---------+--------+---------+--------+---------+
| | | | | | | | | |
+--------+--------+-----------------------+--------+---------+--------+---------+--------+---------+
| | | | | | | | | |
+--------+--------+--------+--------------+--------+---------+--------+---------+--------+---------+
+--------+---------------+
| Note | Ultimate |
| 14: | parent |
| | company |
| | and |
| | controlling |
| | party |
+--------+---------------+
| | At 30 |
| | September |
| | 2009 the |
| | ultimate |
| | UK parent |
| | and |
| | controlling |
| | company was |
| | Agbar UK |
| | Ltd |
| | (formerly |
| | Bristol |
| | Water Group |
| | Ltd). The |
| | ultimate |
| | parent |
| | company is |
| | believed by |
| | the |
| | Directors |
| | to be |
| | Sociedad |
| | General de |
| | Aguas de |
| | Barcelona |
| | S.A. |
| | (Agbar), a |
| | company |
| | incorporated |
| | in Spain. |
| | In October |
| | 2009 it was |
| | announced |
| | that Suez |
| | Environment |
| | (partly |
| | owned by the |
| | French group |
| | GDF Suez) |
| | planned to |
| | take 75% |
| | control of |
| | Agbar, |
| | subject to |
| | shareholder |
| | and |
| | regulatory |
| | approvals. |
| | The outcome |
| | may change |
| | the identity |
| | of Bristol |
| | Water plc's |
| | ultimate |
| | parent |
| | company, |
| | which is |
| | currently |
| | considered |
| | to be Agbar |
| | for the |
| | purposes of |
| | Condition P |
| | of the |
| | company's |
| | Instrument |
| | of |
| | Appointment. |
| | Ofwat is |
| | being kept |
| | informed of |
| | material |
| | developments. |
| | |
+--------+---------------+
+--------+--------------------------------+
| Note | Circulation |
| 15: | |
+--------+--------------------------------+
| | 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. |
+--------+--------------------------------+
DIRECTORS' RESPONSIBILITIES FOR THE PREPARATION OF INTERIM FINANCIAL
STATEMENTS
We confirm that to the best of our knowledge:
* These interim financial statements have been prepared in accordance with UK
GAAP;
* The Chairman's statement includes a fair review of the information required to
indicate important events during the first six months of the financial year and
their impact on the interim financial statements, and a description of the
principal risks and uncertainties for the remaining six months of the financial
year.
By order of the Board
S C Robson
Secretary
11 November 2009
INDEPENDENT REVIEW REPORT TO BRISTOL WATER PLC
We have been engaged by the company to review the financial statements in the
half-yearly financial report for the six months ended 30 September 2009 which
comprises the profit and loss account, the statement of total recognised gains
and losses, the balance sheet, the cash flow statement and related notes 1 to
15. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or material
inconsistencies with the information in the financial statements.
This report is made solely to the company in accordance with International
Standard on Review Engagements 2410 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 half-yearly financial report is the responsibility of, and has been approved
by, the directors. The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure and Transparency Rules of the
United Kingdom's Financial Services Authority.
As disclosed in note 1, the annual financial statements of the company are
prepared in accordance with United Kingdom Generally Accepted Accounting
Practice. The condensed set of financial statements included in this half-yearly
financial report have been prepared in accordance with the accounting policies
the company intends to use in preparing its next annual financial statements.
Our responsibility
Our responsibility is to express to the company a conclusion on the financial
statements in the half-yearly financial report based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK and Ireland) and
consequently does not enable us to obtain assurance that we would become aware
of all significant matters that might be identified in an audit. Accordingly, we
do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe
that the financial statements in the half-yearly financial report for the six
months ended 30 September 2009 is not prepared, in all material respects, in
accordance with the Disclosure and Transparency Rules of the United Kingdom's
Financial Services Authority.
Deloitte LLP
Chartered Accountants and Registered Auditor
11 November 2009
Bristol, United Kingdom
This information is provided by RNS
The company news service from the London Stock Exchange
END
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