26th May 2009 07:00
BRISTOL WATER plc
Bristol Water plc is a subsidiary of Bristol Water Group Ltd, which is itself a subsidiary of Sociedad General de Aguas de Barcelona S.A. (Agbar)
|
Year ended 31 March |
2009 |
2008 |
|
£m |
£m |
|
|
Turnover |
96.7 |
91.0 |
|
Operating profit |
29.1 |
26.3 |
|
Profit before tax |
17.4 |
17.9 |
|
Profit after tax |
12.1 |
14.5 |
|
Regulatory Capital Value (RCV) |
265.4 |
275.5 |
|
Net debt (excluding 8.75% irredeemable cumulative preference shares) as percentage of RCV |
76% |
71% |
|
For further information contact: |
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Alan Parsons, Managing Director |
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Stefano Pellegri, Finance Director |
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Bristol Water plc |
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Tel 0117 953 6407 |
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Or contact: |
Bristol Water Corporate Affairs on 0117 953 6470 during office hours or 07831 453924 at any time. |
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CHAIRMAN'S STATEMENT
Introduction
During the 2009 financial year, we have continued to provide an excellent service to our customers following Ofwat's OPA (Overall Performance Assessment) ranking for 2008 putting Bristol Water in third position in the industry.
We have been heavily involved in the planning process for the next periodic review. This review will determine our tariffs and service obligations for the five years beginning April 2010.
Operational performance
We are now 80% of the way through the current regulatory period 2005-10 and are continuing to make good progress in the delivery of the outputs required by Ofwat's determination of price limits for the current period. Three major capital schemes have been completed:
A £24m project to improve the security of supply for a population of almost 200,000 in the northern and eastern parts of Bristol and its surrounding areas. This scheme has already been used three times since its completion despite the initial expectation that it would only be used very rarely. Such resilience schemes are vitally important to provide the service customers expect in a time of crisis, however it arises, and they represent an important component of our investment proposals beyond 2010.
A £14m 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 £7m project to construct a new treatment works to treat water from the River Axe providing support to customers in the south of our area.
In total, we invested £31m in capital projects during the year. We anticipate a total investment programme for the 5-year regulatory period of about £177m (in current prices, before grants and contributions), which is broadly in line with Ofwat's assumptions.
Our customer service performance remains at a high level with customer surveys consistently showing high satisfaction.
We continue to focus our efforts on enhancing our environmental performance, resulting in a reduced carbon footprint and sensitive environmentally friendly improvements to our assets within areas of outstanding natural beauty and scientific importance.
Financial performance
Operating profit increased by £2.8m to £29.1m during the year. Turnover benefited from a K factor of +3.6% following the Interim Determination from Ofwat in December 2007 but was adversely affected by a decline in industrial consumption. The exceptionally cold weather during the winter months resulted in an abnormally high level of burst mains and hence increased significantly our repair costs. Depreciation and infrastructure renewals charges continue to increase reflecting the on-going investment in our operating assets and capacity. These adverse effects have offset the benefits of determined efforts to achieve operating efficiencies.
Net interest charges, excluding those related to retirement benefits and the preference share dividend, increased by £2.0m to £10.4m. This mainly reflects the increase in net debt resulting from the financing of the capital expenditure programme and an increase in the inflationary element of the charge related to our index-linked debt. Net interest related to retirement benefits was a £0.2m charge in the year compared to income of £1.1m last year.
Profit before tax decreased by £0.5m to £17.4m. The tax charge of £5.3m represents an effective tax rate of 30% (2008: 19%). The charge in 2008 was net of a £1.9m gain due to a reduction in deferred tax liabilities (after discounting) following the reduction in corporation tax rates applicable from April 2008.
Net debt, excluding irredeemable preference shares, increased to £201.8m (31 March 2008: £196.6m) and represents approximately 76% of Regulatory Capital Value at 31 March 2009 (31 March 2008: 71%). This is in line with our projections and as previously indicated we currently anticipate that this ratio will not exceed 80% for the period to March 2010.
Submission of our Regulatory Final Business Plan
We recently submitted our Final Business Plan covering the five years ending March 2015 to Ofwat. The plan is available on our website. It follows the principles set out in our 25-year Strategic Direction Statement and is consistent with our Draft Business Plan submitted in August 2008.
We seek to address the following issues:
To achieve sustainable levels of maintenance, following an extended period of restricting the level of investment, to avoid a deterioration in the performance of our assets and consequently in our service to customers;
Investment to maintain water quality at the highest levels, a fundamental priority for our customers;
Schemes to provide greater resilience in maintaining supplies should critical assets become unavailable for any reason; and
Meeting expected growth in demand from an increasing population and the projected effects of climate change.
Addressing these issues would require a doubling in the level of investment and hence significantly increased levels of borrowing. There is also a need to increase prices to customers by approximately one third in real terms by 2015.
Our proposals, including the effect on prices, were tested in a recent independent customer survey and received strong support. However, no increase in prices is welcomed by customers and so we are proposing additional measures to help those who have genuine difficulty in paying their bills. By 2015 the average household bill, in current prices, will still remain below £4 per week.
The plan includes several major schemes that will achieve multiple objectives but will do so at the lowest cost to customers. This integrated approach is fundamental to achieving our objectives. The plan is fully supported by the Board who have had detailed involvement in its preparation. Ofwat will issue its response in late July 2009 in a draft determination.
Prospects
The key risks to the company are operational problems and performance, regulatory requirements and developments, and financial factors, which are unpredictable due to the present financial market turmoil and high volatility related to all main financial indicators. The company is well placed to face the near future events but it is not immune from the severe financial market uncertainties in the medium term, which have the potential to impact its ability to obtain appropriate financing to deliver the future capital programme in the next regulatory period.
We expect that the results for the year ended 31 March 2010 may include the following material effects:
A reduction in demand from commercial customers, an increase in the proportion of customers who are metered and an approximate 3% increase in charges
A significant increase in energy and chemical costs
A significant increase in bad debts reflecting the impact of the recession
A significant reduction in interest charges related to our index-linked debt with the projected decline in RPI.
Clearly the final determination from Ofwat in November 2009 of future tariffs and service obligations will play a significant role in the future of the company.
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 Bristol Water Group Ltd (the ultimate UK parent company) in respect of inter-company loans.
A final dividend of £3.2m in respect of the 2008 financial year was approved at the Annual General Meeting (AGM) in August 2008 and paid in October 2008.
During the year the following interim dividends have been paid in respect of the 2009 financial year:
First interim for the inter-company loan interest element of £1.5m paid in September 2008
Second interim in respect of the base level dividend of £2.7m paid in December 2008
Third interim for the inter-company loan interest element of £1.4m paid in March 2009.
A final dividend of £3.6m in respect of 2009 will be proposed at the forthcoming AGM.
Dividends payable on the 8.75% irredeemable preference shares are treated as interest under the appropriate accounting rules.
Board membership
The composition of the Board has evolved during the year. In May 2008, Dr Arnold Bates retired as an executive director after 18 years with the company. In July 2008, Manuel Cermerón left his executive director position in the company and is now a non-executive director. In September 2008, Trevor Smallwood retired from the Board as Deputy Chairman and independent non-executive director after 9 years service. On 31 March 2009, Manuel Navarro resigned as Chief Executive to take up a senior position within Agbar as director of its Latin American operations. He remains on the Board as a non-executive director.
We welcome Robert Davis who was appointed as an independent non-executive director on 24 November 2008, and, Luis Garcia who was appointed as Chief Executive on 1 April 2009.
The Board sincerely thanks all of those who have recently left us for their excellent service to the company. The Board remains experienced and well balanced to meet the challenges of the future.
Thanks
I would also like to pass on to all staff the Board's appreciation of their commitment and effort.
I am sure all will join me in sharing the pleasure of our award for Innovation at the recent Water Industry Achievement Awards 2009 for our Ice-Pigging Project undertaken in collaboration with the University of Bristol.
Moger Woolley
Chairman
22 May 2009
PROFIT AND LOSS ACCOUNT
for the year ended 31 March 2009
|
2009 |
2008 |
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|
Note |
£m |
£m |
|||
|
Turnover |
2 |
96.7 |
91.0 |
||
|
Operating costs |
3 |
(67.6) |
(64.7) |
||
|
Operating profit |
29.1 |
26.3 |
|||
|
Other net interest payable and similar charges |
4 |
(10.4) |
(8.4) |
||
|
Dividends on 8.75% irredeemable cumulative preference |
|||||
|
shares |
4 |
(1.1) |
(1.1) |
||
|
Interest in respect of retirement benefit scheme surplus |
4 |
(0.2) |
1.1 |
||
|
Net interest payable and similar charges |
(11.7) |
(8.4) |
|||
|
Profit on ordinary activities before taxation |
17.4 |
17.9 |
|||
|
Taxation on profit on ordinary activities |
5 |
(5.3) |
(3.4) |
||
|
Profit on ordinary activities after taxation |
11 |
12.1 |
14.5 |
||
|
Earnings per ordinary share |
6 |
201.7p |
241.7p |
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|
Dividends per ordinary share |
12 |
||||
|
- declared or proposed in respect of the period |
206.80p |
152.28p |
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|
- paid during the period |
146.78p |
198.78p |
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All activities above relate to the continuing activities of the company.
There is no difference between the profit on ordinary activities before taxation and the retained profit for the financial year stated above and their historical cost equivalents.
STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES
for the year ended 31 March 2009
|
2009 |
2008 |
||||
|
Note |
£m |
£m |
|||
|
Profit attributable to Bristol Water plc shareholders |
12.1 |
14.5 |
|||
|
Actuarial (losses)/gains recognised in respect of |
|||||
|
retirement benefit obligations |
(5.8) |
1.1 |
|||
|
Attributable deferred taxation |
1.6 |
(0.3) |
|||
|
Change in the fair value of the interest rate swap |
8 |
(1.2) |
- |
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Attributable deferred taxation |
9 |
0.3 |
- |
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Total recognised gains for the year |
7.0 |
15.3 |
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BALANCE SHEET
at 31 March 2009
|
2009 |
2008 |
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|
Note |
£m |
£m |
|
|
Fixed assets |
7 |
251.7 |
244.1 |
|
Other investments - Loans to ultimate UK holding company |
68.5 |
68.5 |
|
|
Current assets |
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Stocks |
1.1 |
0.9 |
|
|
Debtors |
21.6 |
20.9 |
|
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Investments |
8 |
19.4 |
21.3 |
|
Cash at bank and in hand |
8 |
1.2 |
0.2 |
|
43.3 |
43.3 |
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Creditors: amounts falling due within one year |
|||
|
Short term borrowings |
8 |
(2.2) |
(16.9) |
|
Other creditors |
(25.0) |
(26.2) |
|
|
(27.2) |
(43.1) |
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|
Net current assets |
16.1 |
0.2 |
|
|
Total assets less current liabilities |
336.3 |
312.8 |
|
|
Creditors: amounts falling due after more than one year |
|||
|
Borrowings and derivatives |
8 |
(220.2) |
(201.2) |
|
Other creditors |
(0.2) |
(0.4) |
|
|
(220.4) |
(201.6) |
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|
8.75% irredeemable cumulative preference shares |
8 |
(12.5) |
(12.5) |
|
Deferred income |
(10.2) |
(10.0) |
|
|
Provisions for liabilities |
9 |
(22.8) |
(20.3) |
|
Retirement benefit surplus |
10 |
6.3 |
10.1 |
|
Net assets |
76.7 |
78.5 |
|
|
Capital and reserves |
|||
|
Called up share capital |
6.0 |
6.0 |
|
|
Share premium account |
4.4 |
4.4 |
|
|
Other reserves |
4.9 |
5.8 |
|
|
Profit and loss account |
61.4 |
62.3 |
|
|
Shareholders' funds |
11 |
76.7 |
78.5 |
CASH FLOW STATEMENT
for the year ended 31 March 2009
|
2009 |
2008 |
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|
Note |
£m |
£m |
|||
|
Net cash inflow from operating activities |
13(a) |
47.5 |
49.4 |
||
|
Returns on investments and servicing of finance |
|||||
|
Interest received |
5.1 |
5.6 |
|||
|
Interest paid on term loans and debentures |
(9.7) |
(9.0) |
|||
|
Interest paid on finance leases |
(0.9) |
(1.0) |
|||
|
Dividends paid on 8.75% irredeemable cumulative preference |
|||||
|
shares |
(1.1) |
(1.1) |
|||
|
Net costs of issue of new loans |
- |
(0.2) |
|||
|
(6.6) |
(5.7) |
||||
|
Taxation |
|||||
|
Corporation tax paid |
(2.1) |
(2.1) |
|||
|
Capital expenditure and investing activities |
|||||
|
Purchase of tangible fixed assets |
(32.6) |
(50.5) |
|||
|
Contributions received |
3.6 |
4.0 |
|||
|
(29.0) |
(46.5) |
||||
|
Equity dividends paid |
12 |
(8.8) |
(11.9) |
||
|
Cash inflow/(outflow) before management of liquid resources and financing |
1.0 |
(16.8) |
|||
|
Management of liquid resources |
|||||
|
being decrease in short-term deposits |
1.9 |
(6.7) |
|||
|
Financing |
|||||
|
New term loans |
15.0 |
20.0 |
|||
|
Capital element of lease repayments |
(1.9) |
(2.5) |
|||
|
Loan repayments |
(15.0) |
(10.0) |
|||
|
(1.9) |
7.5 |
||||
|
Increase/(decrease) in cash |
13(b) |
1.0 |
(2.6) |
||
|
Cash, beginning of year |
0.2 |
2.8 |
|||
|
Cash, end of year |
1.2 |
0.2 |
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NOTES TO THE ACCOUNTS
|
1. |
BASIS OF PREPARATION AND CIRCULATION These preliminary statements do not constitute the statutory accounts for the year ended 31 March 2009 or the year ended 31 March 2008. The statutory accounts for 2008 have been delivered to the Registrar of Companies and those for 2009 have been reported on by the auditors without qualification but have not yet been delivered to the Registrar of Companies. The comparative figures for 2008 have been extracted from the accounts of Bristol Water plc for the year ended 31 March 2008 upon which the auditors' report was unqualified and did not contain a statement under S.237(2) or (3) of the Companies Act 1985. While the financial information included in this preliminary announcement has been prepared in accordance with the measurement and recognition criteria of UK GAAP, this announcement does not itself contain sufficient information to comply with UK GAAP. Going concern The company's activities, together with the factors likely to affect its future development, performance and position are set out in the Chairman's Statement. In assessing the going concern basis, the directors have considered the cash flow projections of the company for the foreseeable future which show that the company is fully funded to meet its existing obligations. The company has repaid existing loans during the year and replaced them with new funding repayable in 2017. In addition, the company has available a £30m undrawn committed borrowing facility which it does not expect to have to use. The company is well placed to face the near future events at 31 March 2009, with cash and cash equivalents of £20.6m and the £30.0m committed and unutilised revolving credit facility. The company is not immune from the severe financial market uncertainties in the medium term, which have the potential to impact its ability to obtain appropriate financing to deliver the future capital programme in the next regulatory period, 2010-15. The performance of the company for the next regulatory period will much depend on the final determination from Ofwat, due in November 2009, which will set prices and indicate funding requirements for the next 5 years. The directors fully support the final business plan submitted to Ofwat and are aware of its impact on future financing needs. They are fully informed of preliminary discussions with financial institutions to meet these needs and will continue to monitor progress. Accordingly, the directors continue to adopt the going concern basis in preparing the annual report and accounts. |
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The preliminary announcement was approved by the Board of Directors on 22 May 2009. |
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|
The Annual Report and Accounts will be posted to shareholders on or before 6 July 2009. Copies will be available to the public from the registered office at PO Box 218, Bridgwater Road, Bristol BS99 7AU. The Annual General Meeting will be held at the Bristol Water plc Head Office, Bridgwater Road, Bristol, on Monday 3 August 2009 at 9.00 am. |
|
|
As outlined in the company's Annual Report and Accounts for the year ended 31 March 2008, the company has not adopted IFRS for its financial statements for the year ended 31 March 2009, and has no current plans to do so until UKGAAP and IFRS are fully harmonised. |
|
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. |
|
3. |
OPERATING COSTS |
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|
Operating costs comprise - |
2009 |
2008 |
|
|
£m |
£m |
||
|
Net payroll cost |
13.1 |
12.2 |
|
|
Total other operating costs |
34.2 |
32.8 |
|
|
Net depreciation |
20.3 |
19.7 |
|
|
Total operating costs |
67.6 |
64.7 |
|
|
4. |
NET INTEREST PAYABLE AND SIMILAR CHARGES |
||||||||
|
2009 |
2008 |
||||||||
|
£m |
£m |
£m |
£m |
||||||
|
Other net interest payable and similar charges relate to - |
|||||||||
|
Bank borrowings |
2.3 |
2.0 |
|||||||
|
Term loans and debentures |
- interest charges |
7.2 |
7.1 |
||||||
|
|
- indexation |
5.0 |
3.7 |
||||||
|
Finance leases |
0.9 |
1.0 |
|||||||
|
15.4 |
13.8 |
||||||||
|
Less: |
|||||||||
|
Loan to Bristol Water Group Ltd - interest receivable |
(4.0) |
(4.0) |
|||||||
|
Other external investments and deposits |
(1.0) |
(1.4) |
|||||||
|
(5.0) |
(5.4) |
||||||||
|
Total other net interest payable and similar charges |
10.4 |
8.4 |
|||||||
|
Dividends on 8.75% irredeemable cumulative preference shares |
1.1 |
1.1 |
|||||||
|
Interest charge/(income) in respect of retirement benefit scheme surplus |
0.2 |
(1.1) |
|||||||
|
|
11.7 |
8.4 |
|||||||
|
Dividends on the 8.75% irredeemable cumulative preference shares are payable at a fixed rate of 4.375% on 1 April and 1 October each year. Payment by the company to the share registrars is made two business days earlier. The payments are classified as interest in accordance with FRS25. |
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5. |
TAXATION ON PROFIT ON ORDINARY ACTIVITIES |
|||||
|
2009 |
2008 |
|||||
|
£m |
£m |
|||||
|
(a) |
Analysis of charge for the year, all arising in the United Kingdom: |
|||||
|
Current tax: |
||||||
|
Corporation tax at 28% (2008: 30%) |
2.5 |
2.4 |
||||
|
Adjustment to prior periods |
(0.1) |
(0.2) |
||||
|
2.4 |
2.2 |
|||||
|
Deferred tax: |
||||||
|
Current year movement |
2.7 |
3.1 |
||||
|
Effect of corporation tax rate change |
- |
(2.6) |
||||
|
Effect of changes related to abolition of Industrial Buildings |
||||||
|
Allowances |
- |
(0.9) |
||||
|
Adjustment to prior periods |
0.1 |
0.2 |
||||
|
2.8 |
(0.2) |
|||||
|
Effect of discounting |
0.1 |
1.4 |
||||
|
2.9 |
1.2 |
|||||
|
Tax on profit on ordinary activities |
5.3 |
3.4 |
||||
|
The charge for corporation tax includes amounts that may be paid in consideration of group relief surrendered by other companies. |
||||||
|
In 2008 a number of measures affecting the future tax charges of the company were enacted in the Finance Act 2007. The effects of the changes are disclosed within the above deferred tax charge for 2008. These relate to: the reduction in the corporation tax rate to 28% with effect from 1 April 2008, and, the withdrawal of the clawback of IBA's on disposal of an industrial building. |
||||||
|
Discount rates have decreased during the current year. Within the effect of discounting in 2009, a decrease in the beneficial effect of discounting of £1.6m (2008: £1.0m) has been recognised in respect of the restatement of the opening balance at the new rates, increasing the overall deferred tax charge. |
||||||
|
Factors that may affect future tax charges ACT is recognised as an asset to the extent that it is foreseen to be recoverable in the next 12 months. There is a further £3.9m (2008: £3.9m) of unrecognised ACT carried forward at 31 March 2009. |
||||||
|
The company also holds £3.0m (2008: £3.0m) of unrecognised capital losses, which are available to offset against any future capital gains. |
||||||
|
6. |
EARNINGS PER ORDINARY SHARE |
||||
|
2009 |
2008 |
||||
|
m |
m |
||||
|
Earnings per ordinary share have been calculated as follows - |
|||||
|
On average number of ordinary shares in issue during the year - |
|||||
|
Earnings attributable to ordinary shares |
£12.1 |
£14.5 |
|||
|
Weighted average number of ordinary shares |
6.0 |
6.0 |
|||
|
As the company has no obligation to issue further shares, disclosure of earnings per share on a fully diluted basis is not required. |
|||||
|
7. |
TANGIBLE FIXED ASSETS |
||||
|
2009 |
2008 |
||||
|
£m |
£m |
||||
|
Net book value, beginning of year |
244.1 |
218.7 |
|||
|
Additions |
31.3 |
49.6 |
|||
|
Disposals |
- |
- |
|||
|
Grants and contributions |
(2.9) |
(4.0) |
|||
|
Depreciation |
(20.8) |
(20.2) |
|||
|
Net book value, end of year |
251.7 |
244.1 |
|
8. |
NET BORROWINGS AND DERIVATIVES |
||||
|
2009 |
2008 |
||||
|
£m |
£m |
||||
|
Investments and cash at bank and in hand |
20.6 |
21.5 |
|||
|
Debt due within one year |
(2.2) |
(16.9) |
|||
|
Debt due after one year excluding interest rate swap |
(219.0) |
(201.2) |
|||
|
Fair value of interest rate swap |
(1.2) |
- |
|||
|
Net borrowings and derivatives excluding 8.75% irredeemable cumulative preference shares |
(201.8) |
(196.6) |
|||
|
8.75% irredeemable cumulative preference shares |
(12.5) |
(12.5) |
|||
|
Net borrowings and derivatives including 8.75% irredeemable cumulative preference shares |
(214.3) |
(209.1) |
|||
|
9. |
PROVISIONS FOR LIABILITIES |
||
|
2009 |
2008 |
||
|
£m |
£m |
||
|
Provision for deferred tax comprises - |
|||
|
Accelerated capital allowances and capital element of finance leases |
39.4 |
37.3 |
|
|
Deferred income |
(1.6) |
(1.8) |
|
|
Short term timing differences |
(0.2) |
(0.6) |
|
|
Retirement benefit obligations |
2.4 |
3.9 |
|
|
Interest rate swap |
(0.3) |
- |
|
|
39.7 |
38.8 |
||
|
Effect of discounting |
(14.5) |
(14.6) |
|
|
Net provision, including deferred tax on retirement benefit obligations |
25.2 |
24.2 |
|
|
Less, attributable to retirement benefit obligations |
(2.4) |
(3.9) |
|
|
Net provision, excluding deferred tax on retirement benefit obligations |
22.8 |
20.3 |
|
|
Deferred tax movement: |
2009 |
2008 |
||
|
£m |
£m |
|||
|
Provision at 1 April |
24.2 |
22.7 |
||
|
Charge to Profit and Loss Account (note 5) |
2.9 |
1.2 |
||
|
(Credit)/charge to Statement of Total Recognised Gains and Losses in respect of: |
||||
|
Retirement benefit obligations |
(1.6) |
0.3 |
||
|
Interest rate swap |
(0.3) |
- |
||
|
Provision at 31 March |
25.2 |
24.2 |
||
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10. |
RETIREMENT BENEFIT OBLIGATIONS |
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The following table sets out the key assumptions used for the valuation of the company's section of the Water Companies' Pension Scheme (WCPS). The table also sets out as at the accounting date the fair value of the assets, a breakdown of the assets into the main asset classes, the present value of the section liabilities, and the resulting surplus. The obligations are accounted for on an FRS17 basis. |
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Expected long term |
Market values of |
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rate of return |
section assets |
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2009 |
2008 |
2007 |
2009 |
2008 |
2007 |
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£m |
£m |
£m |
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Equities |
8.0% |
7.7% |
7.8% |
26.9 |
41.1 |
61.9 |
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Bonds |
4.1% |
4.4% |
4.7% |
96.8 |
97.2 |
69.3 |
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Cash |
1.9% |
3.9% |
5.4% |
0.1 |
0.2 |
0.1 |
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Market value of section assets |
123.8 |
138.5 |
131.3 |
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Present value of liabilities |
(106.2) |
(121.9) |
(120.0) |
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Surplus in the section |
17.6 |
16.6 |
11.3 |
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Amount not recognised due to recognition limit |
(8.9) |
(2.6) |
- |
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Surplus in section |
8.7 |
14.0 |
11.3 |
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Deferred taxation at 28% (2008 and 2007: 30%) |
(2.4) |
(3.9) |
(3.0) |
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Net pension asset |
6.3 |
10.1 |
8.3 |
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11. |
MOVEMENT IN SHAREHOLDERS' FUNDS |
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2009 |
2008 |
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£m |
£m |
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At beginning of year |
78.5 |
75.1 |
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Profit for year |
12.1 |
14.5 |
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Actuarial gains recognised in respect of retirement benefit obligations |
(5.8) |
1.1 |
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Attributable deferred taxation |
1.6 |
(0.3) |
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Fair value of interest rate swap |
(1.2) |
- |
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Attributable deferred taxation |
0.3 |
- |
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Dividends |
(8.8) |
(11.9) |
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End of year |
76.7 |
78.5 |
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12. |
DIVIDENDS IN RESPECT OF ORDINARY SHARES |
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2009 |
2008 |
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£m |
£m |
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Dividends paid |
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Dividend in respect of 2007: |
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Final dividend of 100.03 pence per share, |
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approved by the Board on 31 May 2007 |
- |
6.0 |
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Dividend in respect of 2008: |
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First interim dividend of 23.60 pence per share, |
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approved by the Board on 28 September 2007 |
- |
1.4 |
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Second interim dividend of 51.68 pence per share, |
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approved by the Board on 29 November 2007 |
- |
3.1 |
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Third interim dividend of 23.47 pence per share, |
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approved by the Board on 27 March 2008 |
- |
1.4 |
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Final dividend of 53.35 pence per share, |
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approved by the Board on 4 August 2008 |
3.2 |
- |
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Dividend in respect of 2009: |
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First interim dividend of 24.27 pence per share, |
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approved by the Board on 26 September 2008 |
1.5 |
- |
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Second interim dividend of 45.02 pence per share, |
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approved by the Board on 24 November 2008 |
2.7 |
- |
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Third interim dividend of 24.14 pence per share, |
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approved by the Board on 30 March 2009 |
1.4 |
- |
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8.8 |
11.9 |
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On 18 May 2009 the Board proposed a final dividend of 60.02 pence per share, totalling £3.6m, in respect of the year ended 31 March 2009 (31 March 2008: 53.35p per share totalling £3.2m). In accordance with FRS21 this dividend is not recognised in these accounts as a liability. |
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13. |
SUPPLEMENTARY CASH FLOW INFORMATION |
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(a) |
Reconciliation of operating profit to net cash inflow from operating activities - |
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2009 |
2008 |
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£m |
£m |
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Operating profit |
29.1 |
26.3 |
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Depreciation, net of amortisation of deferred income |
20.3 |
19.7 |
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Difference between pension charges and normal contributions |
0.2 |
0.6 |
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Cash flow from operations |
49.6 |
46.6 |
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Working capital movements - |
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Stocks |
(0.2) |
(0.1) |
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Debtors |
(0.7) |
(0.2) |
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Creditors and provisions |
(0.2) |
4.1 |
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Additional contributions to pension scheme |
(1.0) |
(1.0) |
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Net cash inflow from operating activities |
47.5 |
49.4 |
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(b) |
Reconciliation of net cash flow to movement in net borrowings - |
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2009 |
2008 |
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£m |
£m |
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Increase/(decrease) in net cash in year |
1.0 |
(2.6) |
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Cash used to repay borrowings |
16.9 |
12.5 |
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Cash from new borrowings |
(15.0) |
(20.0) |
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Net costs of issue of loans |
- |
0.2 |
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Cash from decrease in short term deposits |
(1.9) |
(6.7) |
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1.0 |
(16.6) |
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Indexation not affecting cash flow |
(5.0) |
(3.7) |
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Fair value of interest rate swap not affecting cash flow |
(1.2) |
- |
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Net borrowings at 1 April including 8.75% irredeemable cumulative preference shares |
(209.1) |
(188.8) |
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Net borrowings at 31 March including 8.75% irredeemable cumulative preference shares |
(214.3) |
(209.1) |
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Related Shares:
Bristol Wtr.8t%