Announcement of unaudited interim results for the six months
ended 30 September 2024
Bristol Water plc (the "Company")
announces its unaudited results for the six months ending 30
September 2024.
The Company's interim financial
results are set out below and can also be accessed via the
Company's website.
FINANCIAL HIGHLIGHTS
|
|
Six months
to
30 September
2024
|
Six months
to
30
September 2023
|
|
|
(unaudited)
|
(unaudited)
|
|
|
£m
|
£m
|
|
|
|
|
|
Profit / (loss) before
taxation
|
0.1
|
(0.1)
|
|
|
|
|
|
Earnings per share
|
|
|
|
Statutory profit / (loss) per
share
|
1.7p
|
(5.0)p
|
|
|
|
|
The only transactions in the income
statement relate to the remaining preference shares, debentures and
pension asset. The remaining obligations relating to these
are met from matching intra-group contracted assets and related
receipts.
For
further information, please contact:
|
Laura Flowerdew
|
Group Chief Financial
Officer
|
01392 443
168
|
|
Louise Rowe
|
Investor Relations
|
|
James Murgatroyd
Harry Worthington
|
FGS Global
|
020 7251
3801
|
INCOME STATEMENT
For the six months ended 30
September 2024
|
|
|
|
|
Six months
to
30
September
2024
(unaudited)
|
Six months
to
30
September
2023
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs
|
|
|
|
(0.4)
|
(0.3)
|
|
Operating loss
|
|
|
|
(0.4)
|
(0.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest payable and similar
charges
|
|
|
5
|
(0.6)
|
(0.6)
|
|
Interest receivable and similar
income
|
|
|
|
1.1
|
0.8
|
|
Net interest receivable and similar
income
|
|
|
|
0.5
|
0.2
|
|
|
|
|
|
|
|
|
Profit / (loss) on ordinary activities before
taxation
|
|
|
|
0.1
|
(0.1)
|
|
|
|
|
|
|
|
|
Taxation on profit / (loss) on
ordinary activities
|
|
|
6
|
(0.2)
|
(0.2)
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
|
|
(0.1)
|
(0.3)
|
|
|
|
|
|
|
|
|
Loss per ordinary share
|
|
|
7
|
(1.7)p
|
(5.0)p
|
All amounts above relate to the
continuing operations of the Company.
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30
September 2024
|
|
|
|
|
Six months
to
30
September
2024
|
Six months
to
30
September
2023
|
|
|
|
|
|
(unaudited)
|
(unaudited)
|
|
|
|
Note
|
£m
|
£m
|
|
|
|
|
|
|
|
|
Loss for the period
|
|
|
|
(0.1)
|
(0.3)
|
|
|
|
|
|
|
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that will not be reclassified to profit and
loss
|
|
|
|
|
|
|
Re-measurement of defined benefit
pension scheme
|
|
|
9
|
-
|
-
|
|
Other comprehensive income for the period, net of
tax
|
|
|
|
-
|
-
|
|
|
|
|
|
|
|
|
Total comprehensive loss for the period
|
|
|
|
(0.1)
|
(0.3)
|
|
|
|
|
|
|
|
|
STATEMENT OF FINANCIAL POSITION
As at 30 September 2024
|
|
|
|
|
30
September
2024
(unaudited)
|
31
March
2024
(audited)
|
|
|
|
|
Note
|
£m
|
£m
|
|
Non-current assets
|
|
|
|
|
|
|
Other receivables
|
|
|
8
|
26.6
|
26.6
|
|
Retirement benefit
surplus
|
|
|
9
|
-
|
9.5
|
|
|
|
|
|
26.6
|
36.1
|
|
Current assets
|
|
|
|
|
|
|
Trade and other
receivables
|
|
|
|
0.1
|
0.1
|
|
Current tax asset
|
|
|
|
0.3
|
0.5
|
|
Cash and cash equivalents
|
|
|
|
0.9
|
0.7
|
|
Retirement benefit
surplus
|
|
|
9
|
9.4
|
-
|
|
|
|
|
|
10.7
|
1.3
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
37.3
|
37.4
|
|
Non-current liabilities
|
|
|
|
|
|
|
Borrowings and
derivatives
|
|
|
10
|
(1.6)
|
(1.6)
|
|
8.75% irredeemable cumulative
preference shares
|
|
|
10
|
(12.5)
|
(12.5)
|
|
|
|
|
|
(14.1)
|
(14.1)
|
|
Current liabilities
|
|
|
|
|
|
|
Trade and other payables
|
|
|
|
(0.1)
|
(0.1)
|
|
|
|
|
|
(0.1)
|
(0.1)
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
(14.2)
|
(14.2)
|
|
|
|
|
|
|
|
|
Net
assets
|
|
|
|
23.1
|
23.2
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Called-up share capital
|
|
|
|
6.0
|
6.0
|
|
Share premium account
|
|
|
|
4.4
|
4.4
|
|
Other reserves
|
|
|
|
5.8
|
5.8
|
|
Retained earnings
|
|
|
|
6.9
|
7.0
|
|
Total Equity
|
|
|
|
23.1
|
23.2
|
|
The financial statements of Bristol
Water plc, registered number 02662226 on pages 2 to 11 were
approved by the Board of Directors 26 November 2024 and signed on
its behalf by:
Laura Flowerdew
Director
|
|
|
STATEMENT OF CHANGES IN EQUITY
For the six months ended 30
September 2024
|
|
Called up
share capital
|
Share
premium
account
|
Capital
redemption
reserve
|
Retained
earnings
|
Total
|
|
|
£m
|
£m
|
£m
|
£m
|
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2023
|
6.0
|
4.4
|
5.8
|
148.9
|
165.1
|
|
|
|
|
|
|
|
|
Loss for the period
|
-
|
-
|
-
|
(0.3)
|
(0.3)
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
-
|
-
|
-
|
(0.3)
|
(0.3)
|
|
|
|
|
|
|
|
|
Ordinary dividends
|
-
|
-
|
-
|
(143.0)
|
(143.0)
|
|
|
|
|
|
|
|
|
Balance as at 30 September 2023
|
6.0
|
4.4
|
5.8
|
5.6
|
21.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at 1 April 2024
|
6.0
|
4.4
|
5.8
|
7.0
|
23.2
|
|
|
|
|
|
|
|
|
Profit for the period
|
-
|
-
|
-
|
(0.1)
|
(0.1)
|
|
|
|
|
|
|
|
|
Total comprehensive income for the period
|
-
|
-
|
-
|
(0.1)
|
(0.1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at 30 September 2024
|
6.0
|
4.4
|
5.8
|
6.9
|
23.1
|
The Board has not proposed interim
dividends on the ordinary shares in respect of the period ended 30
September 2024 (6 months ended 30 September 2023: £nil).
CASH FLOW STATEMENT
For the six months ended 30
September 2024
|
|
|
|
|
Six months
to
30
September
2024
(unaudited)
|
Six months
to
30
September
2023
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note
|
£m
|
£m
|
|
Cashflows from operating activities
|
|
|
|
|
|
|
Profit / (loss) before
taxation
|
|
|
|
0.1
|
(0.1)
|
|
Adjustments for:
|
|
|
|
|
|
|
|
Difference between pension charges
and contributions paid
|
|
|
|
0.4
|
0.3
|
|
|
Interest income
|
|
|
5
|
(0.8)
|
(0.5)
|
|
|
Interest expense
|
|
|
5
|
0.6
|
0.6
|
|
|
Pension interest income
|
|
|
5
|
(0.3)
|
(0.3)
|
|
|
Decrease in trade and other
creditors and provisions
|
|
|
|
(0.1)
|
(0.1)
|
|
Net
cash used in operating activities
|
|
|
|
(0.1)
|
(0.1)
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Interest received
|
|
|
|
0.8
|
0.8
|
|
Net
cash generated from investing activities
|
|
|
|
0.8
|
0.8
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Preference dividends paid
|
|
|
|
(0.5)
|
(0.5)
|
|
Net
cash used in financing activities
|
|
|
|
(0.5)
|
(0.5)
|
|
|
|
|
|
|
|
|
Net
increase in cash and cash equivalents
|
|
|
|
0.2
|
0.2
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, beginning
of period
|
|
|
|
0.7
|
0.1
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
0.9
|
0.3
|
NOTES TO THE INTERIM ACCOUNTS
For the six months ended 30
September 2024
|
1
|
General Information
|
|
|
Bristol Water plc ("the Company") is
a public company, limited by shares, with irredeemable preference
shares and debenture stock listed on the London Stock
Exchange.
The Company is incorporated and
domiciled in England, United Kingdom. The address of its registered
office is Bridgwater Road, Bristol, BS13 7AT, England.
|
|
|
|
|
2
|
Basis of preparation
|
|
|
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 accounts have been prepared in accordance with Financial
Reporting Standard 104 "Interim Financial Reporting" issued by the
Financial Reporting Council and the Disclosure Rules and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
The Company has adopted FRS 101
"Reduced disclosure framework - Disclosure exemptions from
EU-adopted IFRS for qualifying entities".
|
|
|
|
|
3
|
Accounting policies
The same accounting policies used in
preparing the annual financial statements as at 31 March 2024 have
been used in preparing these interim accounts.
|
|
|
|
|
3.1
|
Going concern
The Company's obligations are met by
matching intra-group contracted assets and related receipts. The
Company has received confirmation from Pennon Group plc that it
will provide support to the Company should it be required, to meet
its liabilities as they fall due for the period which covers the
period from approval of these interim financial statements through
to 30 November 2025. As a result, the Directors have
concluded that the Company has adequate resources, or the
reasonable expectation of raising further resources as required, to
continue in operational existence for the foreseeable future. The
Company therefore continues to adopt the going concern basis in
preparing its financial statements. Further
information on the Company's borrowings is given in note
10.
|
|
|
|
|
4
|
Critical accounting estimates and judgments
|
|
|
The preparation of interim financial
statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and
the reported amounts of assets and liabilities, income and
expense. Actual results may differ from these
estimates. Estimates and judgments are continually evaluated
and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable
under the circumstances.
|
|
|
|
|
|
The estimates and assumptions that
have a significant risk of causing a material adjustment to the
carrying amount of assets and liabilities within the financial year
relate to the defined benefit scheme. The significant judgements
made by management in applying the Company's accounting policies
and the key sources of estimate uncertainty relating to the defined
benefit scheme were the same as those applied to the financial
statements for the year ended 31 March 2024.
|
|
5
|
Net
interest receivable and similar income
|
|
|
|
|
|
|
Six months
to
30 September
2024
(unaudited)
|
Six months
to
30
September 2023
(unaudited)
|
|
|
|
|
|
|
|
|
£m
|
£m
|
|
|
|
Interest payable and similar
charges:
|
|
|
|
|
|
|
|
|
|
|
|
Debentures interest
charges
|
(0.1)
|
(0.1)
|
|
|
|
Dividends on 8.75% irredeemable
cumulative preference shares
|
(0.5)
|
(0.5)
|
|
|
|
|
(0.6)
|
(0.6)
|
|
|
|
|
|
|
|
|
|
Interest receivable and similar
income:
|
|
|
|
|
|
|
|
|
|
|
|
Interest income in respect of
retirement benefit scheme
|
0.3
|
0.3
|
|
|
|
South West Water Ltd - interest
receivable
|
0.8
|
0.5
|
|
|
|
|
1.1
|
0.8
|
|
|
|
|
|
|
|
|
|
Total underlying net interest
receivable and similar income
|
0.5
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
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 IFRS 9 "Financial
Instruments".
|
|
6
|
Taxation
|
|
Six months
to
30 September
2024
(unaudited)
|
Six months
to
30
September 2023
(unaudited)
|
|
|
|
|
£m
|
£m
|
|
|
Tax
expense included in Income Statement
|
|
|
|
|
|
|
|
|
|
|
|
Current tax:
|
|
|
|
|
|
Corporation tax on profits for the
period
|
|
0.2
|
0.2
|
|
|
Total current tax
|
|
0.2
|
0.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax expense on profit /
(loss)
|
|
0.2
|
0.2
|
|
7
|
Loss per ordinary share
|
|
|
|
At
30 September
2024
(unaudited)
|
At
30
September 2023
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
m
|
m
|
|
|
|
Basic loss earnings per ordinary
share have been calculated as follows -
|
|
|
|
|
|
Loss attributable to ordinary
shares
|
£(0.1)
|
£(0.3)
|
|
|
|
Weighted average number of ordinary
shares
|
6.0
|
6.0
|
|
|
|
|
(1.7)p
|
(5.0)p
|
|
|
|
|
|
|
As the Company has no obligation to
issue further shares, disclosure of earnings per share on a fully
diluted basis is not relevant.
|
|
8
|
Other receivables:
|
|
|
|
Other receivables comprise loan
notes issued to the Company on 1 February by SWW.
|
|
|
|
|
At
30 September
2024
(unaudited)
£m
|
At
31 March
2024
(audited)
£m
|
|
|
|
Fixed interest
rate
|
|
|
|
|
|
|
|
|
|
|
|
£25,000,000 fixed rate loan
note
|
6%
|
25.0
|
25.0
|
|
|
£1,405,218 fixed rate loan
note
|
4%
|
1.4
|
1.4
|
|
|
£72,900 fixed rate loan
note
|
3.5%
|
0.1
|
0.1
|
|
|
£54,875 fixed rate loan
note
|
4%
|
0.1
|
0.1
|
|
|
£36,740 fixed rate loan
note
|
4.25%
|
-
|
-
|
|
|
|
|
26.6
|
26.6
|
|
|
|
|
|
|
|
9
|
Retirement benefits
Pension arrangements for former
employees have historically been 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. On 7 June 2018 the Trustee of the Bristol Water Section of
the WCPS purchased a bulk annuity policy to insure the benefits for
the members in the section. Following this, the method for valuing
the liabilities of the pension scheme has remained the same.
The pension liability, following the purchase of the bulk annuity
policy, matches the value of the insurance asset.
The gross pension surplus of £12.5m
at 30 September 2024 (30 September 2023 £12.6m) relates to the
market value of assets still held by the scheme other than the
annuity policy/insurance asset.
The Company believes
that it has an unconditional right to a refund of surplus and that
the gross pension surplus can be recognised. This benefit is only
available as a refund as no additional defined pension benefits are
being earned. Under UK tax legislation a tax deduction of 25% is
applied to a refund from a UK pension scheme, before it is passed
to the employer. This tax deduction has been applied to restrict
the value of the surplus recognised for this scheme. The process to
buy out and wind up the scheme continues and the Trustee has
indicated its intention to return the surplus to the Company.
The buy-out of the section is expected to
be completed within the next
12 months and therefore the surplus has been recognised as a
current asset on the balance sheet.
|
|
|
|
|
9
|
Retirement benefits (continued)
In June 2023, the High Court handed
down a decision (Virgin Media Limited v NTL Pension Trustees II
Limited and others) which potentially has implications for the
validity of amendments made by schemes, including the WCPS, which
were contracted-out on a salary-related basis between 6 April 1997
and the abolition of contracting-out in 2016. This decision was
upheld by the Court of Appeal in August 2024. There is potential
for legislative intervention following industry lobbying efforts
that may retrospectively validate certain rule amendments that
would otherwise be held void where the requirements of section 37
were not met. However, the Company has engaged with the Trustees
for the WCPS who have confirmed that based on the governance
processes in place and an initial review of significant deed
changes during the period in question, there is no reason to
believe, at this stage in their review, that the relevant
requirements were not complied with in relation to the Scheme with
regard to the relevant period in question. Given that there is no
indication at this stage of non-compliance with the relevant
requirements, the scheme's valuation as at 30 September 2024 does
not reflect potential additional liabilities arising from the
Virgin Media case.
|
|
|
In summary, assets and liabilities
under IAS 19 were:
|
|
|
At
30 September
2024
(unaudited)
£m
|
At
31 March
2024
(audited)
£m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value of section
assets
|
115.2
|
120.4
|
|
|
|
Present value of
liabilities
|
(102.7)
|
(107.7)
|
|
|
|
Surplus in the section
|
12.5
|
12.7
|
|
|
|
Less: restriction of
surplus
|
(3.1)
|
(3.2)
|
|
|
|
|
|
|
|
|
|
Net pension asset on IAS 19
basis
|
9.4
|
9.5
|
|
|
|
|
|
|
|
|
10
|
Net
borrowings
|
|
|
|
|
|
At
30 September
2024
(unaudited)
|
At
31 March
2024
(audited)
|
|
|
|
|
|
|
|
|
|
|
|
|
£m
|
£m
|
|
|
Net borrowings comprise -
|
|
|
|
|
Borrowings and derivatives due after
one year
|
(1.6)
|
(1.6)
|
|
|
|
(1.6)
|
(1.6)
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
0.9
|
0.7
|
|
|
Net borrowings excluding 8.75%
irredeemable cumulative
|
|
|
|
|
|
preference shares
|
(0.7)
|
(0.9)
|
|
|
|
|
|
|
|
8.75% irredeemable cumulative
preference shares
|
(12.5)
|
(12.5)
|
|
|
|
|
|
|
|
Net borrowings
|
(13.2)
|
(13.4)
|
|
|
|
|
|
|
10
|
Net
borrowings (continued)
|
|
|
Fair value of financial assets and liabilities measured
at amortised cost.
|
|
|
The fair value of financial assets
and liabilities are as follows:
|
|
|
|
Six months
to
30 September
2024
(unaudited)
|
Year
to
31 March
2024
(audited)
|
|
|
|
|
£m
|
£m
|
|
|
|
Financial liabilities
|
|
|
|
|
|
Non-current
|
(21.0)
|
(23.0)
|
|
|
|
|
|
|
|
|
|
Financial assets
|
|
|
|
|
|
Non-current
|
22.7
|
26.6
|
|
|
|
|
1.7
|
3.6
|
|
|
|
|
|
|
|
|
|
|
|
11
|
Ultimate parent company and controlling
party
|
|
|
The immediate parent company for
this entity is South West Water Limited a company incorporated in
England and Wales.
As at 30 September 2024 and 31 March
2024, the Directors considered the ultimate parent and controlling
party of the Company to be Pennon Group plc.
The smallest and largest group in
which the Company is consolidated is Pennon Group plc which is
registered in England and copies of its consolidated interim report
are available from Peninsula House, Rydon Lane, Exeter, Devon,
England, EX2 7HR.
|
|
12
|
Related party transactions
The Company has taken advantage of
the exemptions within FRS101 and not disclosed transactions with
other wholly owned group undertaking.
|
|
|
|
|
13
|
Circulation
This interim announcement is
available on the Bristol Water web site. Paper copies are also
available from the Company's registered office at
Bridgwater Road, Bristol, BS13 7AT,
England.
|
DIRECTORS' RESPONSIBILITIES FOR THE PREPARATION OF INTERIM
ACCOUNTS
The directors confirm that these
condensed interim financial statements have been prepared in
accordance with FRS104 'Interim Financial Reporting', and that the
interim management report includes a fair review of the information
required by DTR 4.2.7 and DTR 4.2.8, namely:
§ an
indication of important events that have occurred during the first
six months and their impact on the condensed set of financial
statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year;
and
§ material related-party transactions in the first six months
and any material changes in the related-party transactions
described in the last annual report.
The directors of Bristol Water Plc
at the date of the signing of this announcement and statement
are:
Susan Davy
Laura Flowerdew
Going concern
The directors have a reasonable
expectation that the Company has adequate resources available to it
to continue in operational existence for the foreseeable future and
have therefore continued to adopt the going concern policy in
preparing the interim accounts. This conclusion is based upon,
amongst other matters, a review of the Company's financial
projections together with confirmation of support from its parent
company Pennon Group plc.
By order of the Board
L
Flowerdew
Chief Financial Officer
26 November 2024
