TIDMBWRA
RNS Number : 9766R
Bristol Water PLC
26 November 2012
BRISTOL WATER plc
Announcement of interim results for the six months ended 30
September 2012
Bristol Water plc is ultimately owned by Capstone Infrastructure
Corporation (50%), Sociedad General de Aguas de Barcelona S.A.
(Agbar) (30%), and Itochu Corporation of Japan (20%).
Bristol Water plc supplies water to over 1.2 million people and
businesses in an area of almost 2,400 square kilometres centred on
Bristol.
For further information contact:
Luis García, Chief Executive
Miquel Anglada, Finance Director
Bristol Water plc
Tel 0117 953 6470
Or contact: Bristol Water Corporate Affairs on 0117 953 6470 during
office hours or 07831 518964 at any time.
FINANCIAL HIGHLIGHTS - REPORTED UNDER UK GAAP
GBPm
Profit after tax for 6 months to 30 September
2011 4.8
Significant changes between periods:
Increase in revenue mainly due to RPI increase
and K factor 3.0
Decrease in debt indexation cost 1.4
Increase in depreciation charge on infrastructure
assets (1.0)
Increase in tax charge (0.2)
All other changes (0.3)
Profit after tax for 6 months to 30 September
2012 7.7
------
Summary
-- Stable financial and operational performance
-- Increase in profits will allow post tax return on capital to
come back to a more sustainable level
-- High customer satisfaction levels - The company achieved
second place nationally in Ofwat's latest SIM results
-- Significant level of capital investment continued during the period
-- Increase in revenue mainly due to RPI and K factor
-- Decrease in debt indexation charge due to lower RPI
-- Increase in depreciation on infrastructure assets
CHAIRMAN'S STATEMENT
This is my first Chairman's statement since taking over from my
predecessor Moger Woolley. I would like to start by paying tribute
to the outstanding service Moger gave to the company over the past
14 years. His wise guidance and leadership of a committed and
customer-focused company ensures that I start with a strong
platform for the future.
I will bring my experience from outside the water industry to
bear at a time when there is change ahead. I am looking forward to
the future challenges, confident in the knowledge that this company
has always delivered an excellent record of high quality service to
our customers and that this ethos will continue over the years
ahead.
This is the third year of the current 5-year regulatory period
to March 2015 and we remain firmly focused on satisfying customer
needs and delivering the outputs specified in the last Price
Review.
At the start of the financial year the company faced the
prospect of drought restrictions. The country had seen two very dry
winters and by April a third of the country was under hosepipe
bans. We were able to avoid any restrictions through the success of
our leakage reduction work and tight management of our water
sources. This resulted in the lowest water put into supply since
1976. Further, the unusually high rainfall from April through to
September has filled our reservoirs and removed the risk of the
need for restrictions later this year.
Capital programme
The company is now halfway through its 2010-15 capital programme
for AMP5. Good progress is being made and we are on track to
deliver all of the required outputs in the regulatory period.
Last year saw the company deliver the largest annual investment
of GBP60.4m on capital expenditure in its history. The current year
is expected to continue this trend and the investment on capital
expenditure to the end of September was over GBP42.0m.
The company has engaged in an extensive customer and stakeholder
communications campaign to accompany the wide range of projects
currently in progress or planned. The purpose is to help explain
the nature of the work, the impact and the benefits, with the
intention of keeping customers informed and aiming to answer their
questions in advance. A key message to customers is whatever the
short-term disruptions might be, the benefits of the essential work
will be long-term.
Key projects during the period have been:
-- the GBP15m 10.5km pipeline being laid through the heart of
the city of Bristol. The project, called the Bristol Resilience
Scheme, will bring security of supply to over 150,000 consumers who
currently rely on a single source for their supply. This
challenging project involves construction of a 700mm pipe in a very
busy city environment from Lockleaze to Clifton. The project has
progressed well and is on schedule to be complete by Spring
2013;
-- the GBP22m scheme to renovate 58km of the trunk mains
network. This network of mains supplies large parts of Bristol and
North Somerset and its renovation is expected to continue
throughout the current regulatory period;
-- the scheme to replace sections of the distribution mains
network that are in poor condition with a target of 65km in the
current financial year;
-- new large diameter strategic mains laying scheme to meet
increasing demand in North Bristol and Weston-Super-Mare. The work
is close to completion; and
-- the programme to enhance the treatment process at five
treatment works by installation of ultra-violet disinfection
equipment. The work is in progress with one now operational, two
under construction and design work well advanced on the other
two.
The work has also continued on the major scheme to develop a
second raw water reservoir at Cheddar to meet the demand for
additional water supplies in the future. This project is currently
at the planning stage and the company has continued to consult with
all stakeholders as the work progresses.
Business process efficiency initiative
The company-wide business improvement programme under the banner
of 'simpler and better working' has progressed to time and budget
and is now midway through delivery. This improvement programme has
been financed by efficiencies identified within the business.
Notable achievements have been the implementation of:
-- best in class procurement strategies;
-- more robust capital expenditure and project management processes; and
-- market-leading new IT systems for Human Resource &
Payroll, Document Management, and Vehicle Tracking.
During the next 12 months the programme is expected to complete
and the company will recognise further benefits of improved
performance management, better customer interaction, more effective
works management processes and more robust asset management.
Customer service
Bristol Water's focus on excellent customer service is
continuing to deliver outstanding results. The full year results
for Ofwat's SIM customer service measure for 2011/12 were published
in July. It showed Bristol Water in second place nationally. SIM
captures the customer experience, their interaction with the
company and the reasons that prompted them to contact us. This new
system means staff can impact on the score right across all parts
of the company's work. The achieved score demonstrates the efforts
by all our staff in providing a high level of customer service. The
Consumer Council for Water, the water industry's consumer watchdog,
also recently published its annual results for customer complaints
showing that our complaints were down by 38%, which places us third
in the industry. These results are particularly impressive against
the backdrop of our extensive works on our network and the
potential inconvenience they can cause which could lead to customer
dissatisfaction. We believe these results demonstrate that we are
getting it right, but our goal must be to make sure that we do not
take this for granted, and we continue to make improvements and
strive to stay at the top.
PR14 - customer consultation process
For the next Price Review (PR14) Ofwat wishes to increase
customer involvement in the formulation of water companies'
Business Plans. We have created a Local Engagement Forum involving
representatives of key stakeholders including the Consumer Council
for Water, Drinking Water Inspectorate, Local Councils, Nature and
Environmental Organisations and Customer Representatives.
Following the guidelines from Ofwat, Bristol Water has
identified a set of customer supported outcomes through our
Strategic Direction Statement customer consultation process which
will be tested through the Local Engagement Forum. Extensive
customer research is being carried out, the results of which will
contribute to the Business Plan to be submitted to Ofwat in March
2014.
Work with the Local Engagement Forum is continuing. The forum
has been helping Bristol Water to specify and oversee its customer
research for PR14 and in agreeing the outcomes for customers that
our Business Plan will need to address. I welcome the contribution
and challenge we have received from our stakeholders.
Draft Water Bill
The UK Government published the anticipated Draft Water Bill on
10 July 2012 for scrutiny and wider comment. The Draft Water Bill
builds upon the themes in the Water White Paper "Water for Life"
published in December 2011, namely addressing water resources and
environmental concerns, introducing market reform and competition,
and making changes to the current regulatory framework.
We welcome the high level aims of the Government's reform and
look forward to working with DEFRA (Department of Environment, Food
and Rural Affairs) and other stakeholders to help implement them in
the most appropriate way.
Water licence modification
In December 2011 Ofwat published proposals to modify the
licences for all the water companies in England and Wales. All the
water companies, including Bristol Water, rejected the proposals on
the basis that the proposed changes were unnecessarily broad and
created uncertainty that would undermine the stability and
predictability of the regulatory regime to the detriment of
companies' ability to raise capital on cost effective terms.
In October 2012 Ofwat launched a revised consultation on its
proposals to modify the licences and requested agreement to a set
of licence modifications in relation to price controls. The Board
has carefully considered the detail of what was proposed and has
decided to decline the new licence wording proposed as not being in
the interests of the company or its customers.
Financial performance
There has been a stable underlying performance. Turnover
increased by GBP3.0m mainly due to the RPI increase and K factor
for the current year. Operating profit increased by GBP1.7m
primarily driven by the increase in turnover offset by an increase
of GBP1.0m in the depreciation charge on infrastructure assets.
The profit before and after tax results were also affected by a
decrease of GBP1.4m in the indexation of index-linked debt.
The overall tax charge represents 16% of the profit before
taxation and it is the combination of:
-- tax payable based on the current year's computations,
-- the net present value of deferred tax arising during the period and
-- the effect of the reduction in the tax rate on the total
deferred tax liability generated in prior periods.
Like all regulated water companies in the UK, Bristol Water owns
and finances its capital programme. The significant level of
investment delivered for our customers allows the company to defer
tax payable to future periods in accordance with standard
applicable tax reliefs.
The ratio of net debt to March 2013 expected RCV is 56%, which
is lower than previously projected due to lower cumulative capital
investment for the current regulatory period. This results from
delay in some capital schemes following the referral to the
Competition Commission at the beginning of the current regulatory
period.
On 17 August, the company arranged two new bank facilities of
GBP50m and GBP20m each. The loans have not yet been drawn down. The
GBP50m facility will expire in August 2017, and the GBP20m facility
will expire in August 2015. Collectively these facilities complete
the external funding requirements of the ongoing 2010-15 capital
programme, provide refinancing for a GBP15m loan repaid earlier in
the year, and provide cover for a GBP30m loan facility due to
expire in May 2013.
Dividends
During the period GBP6.3m of dividends were paid, comprising
GBP4.8m 'final' dividend in respect of the year ended 31 March
2012, and a first interim dividend of GBP1.5m representing the
return of post-tax interest receivable on loans to a UK parent
company.
The Board has proposed a second interim dividend of GBP4.5m in
respect of the year ending 31 March 2013.
Prospects
In the Directors' Report within the company's Annual Report and
Accounts 2012 we set out a summary of the key risks and
uncertainties facing the company. The key risks identified are
regulatory requirements and developments, and operational
conditions outside of company control. The company is well placed
to respond to the near future events, but it is not immune to the
continuing financial market uncertainties in the medium term, which
have the potential to impact its ability to obtain appropriate
financing to deliver future capital programmes.
We anticipate that the results for the second half of the year
may include the following material effects:
-- an increase in the bad debts charge;
-- an increase in chemical and power costs;
-- impact of RPI movements on our GBP159.9m indexed-linked debt; and
-- the impact of further substantial capital investment.
Board membership
As mentioned above, Moger Woolley, previously the Chairman of
the Board of Directors, retired on 26 July 2012. I have taken over
his responsibilities as Chairman and became a director of the
company on 26 July 2012.
Keith Ludeman
Chairman
26 November 2012
PROFIT AND LOSS ACCOUNT
For the six months ended 30 September 2012
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Turnover 2 57.4 54.4 108.0
Operating costs 3 (42.8) (41.5) (83.5)
Operating profit 14.6 12.9 24.5
Other net interest payable and similar charges 4 (4.9) (6.3) (12.3)
Dividends on 8.75% irredeemable cumulative preference
shares 4 (0.5) (0.5) (1.1)
Net interest payable and similar charges (5.4) (6.8) (13.4)
Profit on ordinary activities before taxation 9.2 6.1 11.1
Taxation on profit on ordinary activities 5 (1.5) (1.3) (3.9)
Profit on ordinary activities after taxation 7.7 4.8 7.2
Earnings per ordinary share 6 128.3p 80.0p 120.0p
All activities above relate to the continuing activities of the
company.
The accompanying notes to the interim results form an integral
part of this statement.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
For the six months ended 30 September 2012
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Profit attributable to Bristol Water plc shareholders 7.7 4.8 7.2
Actuarial (losses)/gains recognised in respect of
retirement
benefit obligations 10,11 (0.4) 0.7 1.2
Attributable deferred taxation 10,11 0.2 (0.2) (0.1)
Change in the fair value of the interest rate swap 11 (0.2) (0.7) (0.8)
Attributable deferred taxation 11 - 0.2 0.1
Total recognised gains for the period 7.3 4.8 7.6
---------- -------- -------
The accompanying notes to the interim results form an integral
part of this statement.
BALANCE SHEET
30 September 2012
At At At
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Fixed assets 7 287.1 241.0 264.4
Other investments- Loans to a UK holding company 68.5 68.5 68.5
Current assets
Stocks 1.3 1.2 1.4
Debtors 32.8 28.5 27.3
Cash on deposits 8 29.0 77.3 64.5
Cash at bank and in hand 8 2.1 2.4 7.8
65.2 109.4 101.0
Creditors: amounts falling due within one year
Current portion of long-term borrowings 8 (2.2) (3.2) (18.4)
Other creditors (42.6) (27.0) (40.6)
(44.8) (30.2) (59.0)
Net current assets 20.4 79.2 42.0
Total assets less current liabilities 376.0 388.7 374.9
-------------- -------------- -----------
Creditors: amounts falling due after more than one year
Borrowings and derivatives 8 (247.2) (258.6) (246.9)
8.75% irredeemable cumulative preference shares 8 (12.5) (12.5) (12.5)
Deferred income (9.1) (9.6) (9.3)
Provision for liabilities 9 (24.9) (23.0) (24.7)
Retirement benefit surplus 10 9.2 8.2 9.0
Net assets 91.5 93.2 90.5
Capital and reserves
Called-up share capital 6.0 6.0 6.0
Share premium account 4.4 4.4 4.4
Other reserves 4.2 4.6 4.4
Profit and loss account 76.9 78.2 75.7
Shareholders' funds 11 91.5 93.2 90.5
The accompanying notes to the interim results form an integral
part of this statement.
CASH FLOW STATEMENT
For the six months ended 30 September 2012
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
Note GBPm GBPm GBPm
Net cash inflow from operating activities 13(a) 25.2 22.1 55.8
Returns on investments and servicing of finance
Interest received 2.4 2.2 4.6
Interest paid on term loans and debentures (5.0) (4.9) (9.9)
Interest paid on finance leases - (0.3) (0.5)
Dividends paid on 8.75% irredeemable cumulative (0.5) (0.5) (1.1)
preference shares
(3.1) (3.5) (6.9)
Taxation
Corporation tax paid (0.7) (1.6) (2.0)
Capital expenditure and investing activities
Purchase of tangible fixed assets (40.0) (15.0) (48.7)
Contributions received 1.9 2.3 3.9
Proceeds from disposal of tangible fixed assets - - 0.1
Decrease in cash deposits maturing after three months
from the balance sheet date 8 20.3 19.8 26.5
(17.8) 7.1 (18.2)
Equity dividends paid (6.3) (1.5) (7.0)
Cash (outflow)/inflow before management of liquid
resources and financing (2.7) 22.6 21.7
Management of liquid resources being
decrease/(increase) in liquid resources 8 15.2 (19.8) (13.7)
---------- -------- -------
Financing
Repayment of loans (15.0) - -
Capital element of lease repayments (3.2) (2.8) (2.6)
---------- -------- -------
(18.2) (2.8) (2.6)
---------- -------- -------
(Decrease)/increase in cash 13(b) (5.7) - 5.4
Cash, beginning of period 7.8 2.4 2.4
Cash, end of period 2.1 2.4 7.8
The accompanying notes to the interim results form an integral
part of this statement.
NOTES TO THE INTERIM RESULTS
For the six months ended 30 September 2012
Note Accounting policies
1:
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 2012 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.498 (2) or (3) of the Companies Act 2006. The accounting
policies adopted in the preparation of these interim results
are in accordance with United Kingdom Generally Accepted Accounting
Practices (UK GAAP). These interim results have also been
prepared in accordance with the Accounting Standards Board
Statement, 'Half-yearly Financial Reports'.
As outlined in the company's Annual Report and Accounts for
the year ended 31 March 2012, the company is not required
to, and does not intend to, adopt IFRS for statutory reporting
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
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Operating costs comprise -
Payroll cost, net of recharges to fixed assets and
including retirement benefit costs 6.1 6.5 12.2
Depreciation, net of amortisation of deferred income 17.1 15.5 32.2
Other operating costs 19.6 19.5 39.1
42.8 41.5 83.5
----------- --------- --------
Note 4: Net interest payable and similar charges
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Other net interest payable/(receivable) and similar
charges/(income) relate to:
Bank borrowings 0.5 0.5 1.0
Term loans and debentures:
interest charges 4.5 4.2 8.8
indexation and amortisation of fees and
premium on loans 2.2 3.8 7.0
Finance leases (0.1) 0.1 0.2
----------- --------- --------
7.1 8.6 17.0
----------- --------- --------
Less:
Loan to Bristol Water Holdings UK Ltd -
interest receivable (2.0) (2.0) (4.0)
Other external investments and deposits (0.2) (0.3) (0.7)
----------- --------- --------
(2.2) (2.3) (4.7)
----------- --------- --------
Total other net interest payable and similar charges 4.9 6.3 12.3
Dividends on 8.75% irredeemable cumulative
preference shares 0.5 0.5 1.1
Interest charge in respect of retirement benefit - - -
scheme
5.4 6.8 13.4
----------- --------- --------
Note 5: Taxation on profit on ordinary activities
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
The charge for taxation comprises -
Current tax:
Corporation tax at 24% (2011/12: 26%) 1.2 0.6 1.4
Adjustment to prior periods - (0.1) (0.1)
1.2 0.5 1.3
Deferred tax:
Current period movement 1.1 1.1 1.7
Effect of corporation tax rate change (1.5) (1.5) (2.9)
Adjustment to prior periods - 0.1 0.1
Effect of discounting 0.7 1.1 3.7
Total deferred tax 0.3 0.8 2.6
Taxation on profit on ordinary activities 1.5 1.3 3.9
The overall tax charge represents 16% (six months to 30 September 2011: 21%; year ended 31
March 2012: 35%) of the profit before taxation.
The overall tax charge includes the exceptional effect on the deferred tax provision of the
reduction in the corporation tax rate from 24% to 23% with effect from 1 April 2013. The effect
of this tax rate reduction is disclosed above on an undiscounted basis as a credit of GBP1.5m
(discounted basis: credit of GBP1.0m).
Note 6: Earnings per ordinary share
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
m m
Earnings per share have been calculated as follows -
Earnings GBP7.7 GBP4.8 GBP7.2
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
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
The movement in fixed assets comprises -
Net book value, beginning of period 264.4 240.7 240.7
Additions 42.0 18.3 60.4
Disposals - - (0.1)
Grants and contributions (1.9) (2.3) (3.9)
Depreciation charge for period (17.4) (15.7) (32.7)
Net book value, end of period 287.1 241.0 264.4
Note 8: Net borrowings
At At At
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Net borrowings comprise -
Debt due after one year, excluding 8.75%
irredeemable cumulative preference shares 247.2 258.6 246.9
Current portion of long-term borrowings 2.2 3.2 18.4
249.4 261.8 265.3
Cash on deposits maturing:
within three months from the balance sheet
date (29.0) (50.3) (44.2)
after three months from the balance sheet date - (27.0) (20.3)
Cash at bank and in hand (2.1) (2.4) (7.8)
---------- -------- -------
Net borrowings excluding 8.75% irredeemable
cumulative preference shares 218.3 182.1 193.0
8.75% irredeemable cumulative preference shares 12.5 12.5 12.5
Net borrowings 230.8 194.6 205.5
Note 9: Provision for liabilities
At At At
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Deferred tax liability 38.5 40.0 39.2
Effect of discounting (10.8) (14.2) (11.6)
Net provision, including deferred tax on
retirement
obligations 27.7 25.8 27.6
Less, attributable to retirement benefit
obligations
(note 10) (2.8) (2.8) (2.9)
---------- -------- -------
Net provision, excluding deferred tax on
retirement
benefit obligations 24.9 23.0 24.7
---------- -------- -------
Note Retirement benefits
10:
Pension arrangements for the company's employees are partly
provided through the company's membership of the Water Companies'
Pension Scheme (WCPS), which provides defined benefits based
on final pensionable pay. The company's membership of WCPS
is through a separate section of the scheme. The assets of
the section are held separately from those of the company
and are invested by discretionary fund managers appointed
by the trustees of the scheme. The section has been closed
to new entrants and all new eligible employees are offered
membership of a stakeholder pension scheme.
In addition to providing benefits to employees and ex-employees
of Bristol Water plc, the section provides benefits to former
Bristol Water plc employees who transferred to Bristol Wessex
Billing Services Ltd. The majority of the section assets
and liabilities relate to Bristol Water plc employees and
ex-employees.
The triennial valuation of the pension scheme as at 31 March
2011 was completed last year. The total funding deficit as
at 31 March 2011 was GBP2.9m. This represents a funding level
of 98.1%. As a result of the Trustee advice, the company
made a deficit contribution of GBP0.5m last year and has
agreed to make deficit contributions of GBP0.4m per annum
until year ending 31 March 2015. Further the company also
increased the regular contributions for the main sub-section
from 21% to 28.9%, and for the alternative benefits sub-section
from 10% to 17.6%, of the relevant payroll costs. The next
triennial valuation of the pension scheme is due to be completed
in March 2014. However an updated estimate of the scheme's
funding deficit at 31 March 2012 indicated a funding deficit
of approximately GBP13.0m. The increase in deficit over the
year reflects primarily the reduction in the yields available
on long dated gilts.
Pension assets and liabilities are recognised in financial
statements in accordance with Financial Reporting Standard
17 'Retirement Benefits' (FRS 17). The net pension surplus
has been calculated by using an asset recognition limit,
calculated under FRS 17, to recognise the pension asset to
the extent that future contributions will be reduced or refunds
received.
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:
At At At
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Market value of section assets 160.1 156.5 166.7
Present value of liabilities (141.0) (126.2) (135.3)
Surplus in the section 19.1 30.3 31.4
Amount not recognised due
to asset
recognition limit (7.1) (19.3) (19.5)
Deferred taxation (2.8) (2.8) (2.9)
Net pension asset on FRS17
basis 9.2 8.2 9.0
----------- ---------- ------------
Note 11: Shareholders' funds
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Movement in shareholders' funds -
At the beginning of the period 90.5 89.9 89.9
Profit for the period 7.7 4.8 7.2
Actuarial (losses)/gains recognised in respect of
retirement benefit obligations (0.4) 0.7 1.2
Attributable deferred taxation 0.2 (0.2) (0.1)
Fair value of interest rate swap (0.2) (0.7) (0.8)
Attributable deferred taxation - 0.2 0.1
Ordinary dividends (note 12) (6.3) (1.5) (7.0)
At the end of the period 91.5 93.2 90.5
---------- -------- -------
Note 12: Ordinary dividends
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
Dividends paid in respect of 2011/12:
First interim dividend of 24.95 pence per share,
approved for payment on 22 September 2011 - 1.5 1.5
Second interim dividend of 66.69 pence per share,
approved for payment on 24 November 2011 - - 4.0
Third interim dividend of 24.81 pence per share,
approved for payment on 29 March 2012 - - 1.5
Final dividend of 80.02 pence per share,
approved for payment on 30 May 2012 4.8 - -
Dividends paid in respect of 2012/13:
First interim dividend of 25.62 pence per share,
approved for payment on 27 September 2012 1.5 - -
6.3 1.5 7.0
-------------- -------------- ----------
A second interim dividend of GBP4.5m in respect of the year ending 31 March 2013 has been
proposed by the Board for payment before the end of November 2012.
Note 13: Supplementary cash flow information
Six months to Six months to Year to
30 September 30 September 31 March
2012 2011 2012
(unaudited) (unaudited)
GBPm GBPm GBPm
a) Reconciliation of operating profit to net cash
inflow from operating activities -
Operating profit 14.6 12.9 24.5
Depreciation, net of amortisation of deferred
income 17.1 15.5 32.2
Difference between pension charges and normal
contributions (0.2) - 0.1
Cash flow from operations 31.5 28.4 56.8
Working capital movements:
Stocks 0.1 (0.1) (0.3)
Debtors (5.7) (5.8) (4.8)
Creditors and provisions (0.5) (0.4) 4.6
Additional contributions to pension scheme (0.2) - (0.5)
Net cash inflow from operating activities 25.2 22.1 55.8
------------ ----------- -------
b) Reconciliation of net cash flow to movement in net
borrowings -
(Decrease)/increase in cash in the period (5.7) - 5.4
Cash used to repay borrowings 18.2 2.8 2.6
Decrease in cash deposits in the period (35.5) - (12.8)
(23.0) 2.8 (4.8)
Indexation of debt, amortisation of fees and
premiums,
and other movements not affecting cash flow (2.1) (3.8) (7.0)
Fair value of interest rate swap not affecting
cash flow (0.2) (0.7) (0.8)
Net borrowings, beginning of period, including
8.75% irredeemable cumulative preference
shares (205.5) (192.9) (192.9)
Net borrowings, end of period, including 8.75%
irredeemable cumulative preference shares (230.8) (194.6) (205.5)
-------- -------- --------
Note Ultimate parent company and controlling party
14:
At the balance sheet date the ultimate parent company
was considered by the directors to be Capstone Infrastructure
Corporation, a company incorporated in Canada.
The group in which this company is consolidated is
Capstone Infrastructure Corporation and copies of
its consolidated annual report are available from
155 Wellington Street West, Suite 2930 Toronto, ON
M5V 3H1, Canada.
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
26 November 2012
INDEPENDENT REVIEW REPORT TO BRISTOL WATER PLC
Introduction
We have been engaged by the company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2012, which comprises the Profit and
loss account, Statement of total recognised gains and losses,
Balance Sheet, 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 condensed set of financial statements.
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 applicable law and United
Kingdom Accounting Standards (UK Generally Accepted Accounting
Practice). The condensed set of financial statements included in
this half-yearly financial report has been prepared in accordance
with the Statement "Half-yearly financial reports" issued by the UK
Accounting Standards Board.
Our responsibility
Our responsibility is to express to the company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review. This report, including the
conclusion, has been prepared for and only for the company for the
purpose of the Disclosure and Transparency Rules of the Financial
Services Authority and for no other purpose. We do not, in
producing this report, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown
or into whose hands it may come save where expressly agreed by our
prior consent in writing.
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 enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK and Ireland) and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2012 is not prepared, in all material respects, in
accordance with the Statement "Half-yearly financial reports"
issued by the UK Accounting Standards Board and the Disclosure and
Transparency Rules of the United Kingdom's Financial Services
Authority.
PricewaterhouseCoopers LLP
Chartered Accountants
26 November 2012
Bristol, United Kingdom
Notes:
(a) The maintenance and integrity of the Bristol Water plc
website is the responsibility of the directors; the work carried
out by the auditors does not involve consideration of these matters
and, accordingly, the auditors accept no responsibility for any
changes that may have occurred to the financial statements since
they were initially presented on the website.
(b) Legislation in the United Kingdom governing the preparation
and dissemination of financial statements may differ from
legislation in other jurisdictions.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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