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RCS - Urenco Limited - Urenco Group – FY 2021 Audited Financial Results

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RNS Number : 2694E  Urenco Limited  10 March 2022

 news release

 Date: 10 March 2022

Urenco Group - Full Year 2021 Audited Financial Results

Resilient operational and financial performance despite ongoing challenges
from COVID-19

 

 

London - 10 March 2022 - Urenco Group ("Urenco" or "the Group"), an
international supplier of uranium enrichment services and nuclear fuel cycle
products, today announces its results for the full year ended 31 December
2021.

 

·    Resilient operational and financial performance despite ongoing
challenges from COVID-19, with 100% customer delivery record maintained.

·    Revenue reduced to €1,669.3 million (2020: €1,700.1 million),
mainly due to one-off income received in 2020, partially offset by an increase
in SWU spot sales.

·    EBITDA and net income lower at €971.1 million and €364.5 million
respectively (2020: €1,088.1 million; €505.3 million), in line with
management expectations.

·    New orders secured during the year at improving prices, underpinning
the future order book value of €8.7 billion, extending into the 2030s (2020
order book value: €9.0 billion).

·    Continued strong cash generation enabled a significant reduction in
net debt to €11.5 million (2020: €455.7 million).

 

 Financial Highlights (€m)                                  2021     2020

 Revenue                                                    1,669.3  1,700.1
 EBITDA((i))                                                971.1    1,088.1

 EBITDA margin %                                            58.2%    64.0%
 Income from operating activities (pre-exceptional items)   635.8    774.4
 Exceptional items (pre-tax)((ii))                          -        (25.6)
 Income from operating activities (post-exceptional items)  635.8    748.8
 Net income (pre-exceptional items)                         364.5    530.9
 Exceptional items (post-tax)((ii))                         -        (25.6)
 Net income (post-exceptional items)                        364.5    505.3
 Earnings per share (post-exceptional items)                2.2      3.0
 Capital expenditure((iii))                                 129.8    141.1
 Cash generated from operating activities                   1,027.6  1,171.4
 Net debt                                                   11.5     455.7

(i)   EBITDA is defined as earnings before exceptional items, interest
(including other finance costs), taxation, depreciation and amortisation and
joint venture results. Depreciation and amortisation are adjusted to remove
elements of such charges included in changes to inventories and SWU assets and
net costs of nuclear provisions. Further details on the reconciliation of
income from operating activities to EBITDA Is provided on page 10.

(ii)  No exceptional items were reported in 2021 (2020: charges of €25.6
million). The exceptional charge in 2020 arose due to lower discount rates
applied to nuclear provisions in the US.

(iii) Capital expenditure includes net cash flows from investing activities
(excluding interest received, payments on maturing swaps and short-term
deposits) of €131.0 million and capital accruals (included in working
capital payables) of €(1.2) million.

 

 

Boris Schucht, Chief Executive of Urenco Group, commenting on the full year
results, said:

 

"2021 was a positive year for Urenco. We worked hard to increase key
stakeholder understanding of the nuclear industry and Urenco's role in
achieving net zero carbon emissions. We continued to progress our strategy,
maintaining strong financial and operational performance, and delivered for
our customers. I am very grateful for the determination and hard work of our
employees and the strength of our business partnerships in achieving this,
especially during a time of challenge due to COVID-19. Once again we
maintained continuous operations and service to our customers.

 

Revenue was down at €1,669.3 million (2020: €1,700.1 million), due to
one-off income received in 2020 of €44.5 million from the settlement of
claims filed by Urenco relating to the Chapter 11 bankruptcy of a US customer,
partially offset by an increase in short term spot SWU sales delivered in
2021. EBITDA and net income were down at €971.1 million and €364.5 million
respectively (2020: €1,088.1 million; €505.3 million), as expected, due to
lower revenues and an increase in operating costs. Net income has been further
adversely affected by a non-cash deferred tax charge of €55.7 million due to
a future increase in the UK corporate tax rate, which was enacted in 2021.
Cash generated from operating activities remained strong at €1,027.6 million
(2020: €1,171.4 million), which enabled a significant reduction in net debt
to €11.5 million (2020: €455.7 million).

Through our strategy, Urenco is committed to maintaining our position as a
trusted global industry leader, making a valuable contribution to a
sustainable net zero carbon future as a reliable nuclear fuel supplier. In
2021 we spent a significant amount of time supporting policy makers in this
critical area to understand what role nuclear can play in the energy
transition. This included commissioning an independent study from Aurora
Energy Research to investigate and establish the benefits of deploying both
nuclear and renewables in hydrogen production and presenting at the COP26
climate change conference. We also committed to achieving net zero emissions
within our own operations in advance of 2040 as a member of the Climate
Pledge. In addition, we signed a new sustainability-linked bank facility,
including commitments on carbon reduction, water management and safety.

Medicine is another area where our services provide huge social value. Last
year we were very proud to officially open a new cascade of centrifuges at our
Urenco Stable Isotopes facility in the Netherlands to meet, in particular, the
growing demand for medical products, for example Xenon 129, which is used in
MRI imaging to detect lung diseases.

 

At Urenco, we firmly believe that nuclear power has a key role, alongside
renewables, in the clean energy transition through making a valuable
contribution to reliable, low carbon electricity generation and the future
production of hydrogen. In 2022 we look forward to constructive conversations
and strong collaboration across industry and government on this essential
work."

 

 

Financial Results

 

Revenue for the year ended 31 December 2021 was €1,669.3 million, a
decrease of €30.8 million (1.8%) on the €1,700.1 million in 2020. SWU
revenues were higher in 2021 by €16.4 million and uranium related sales were
lower by €2.2 million. For SWU revenues, both volumes and average unit
revenues were higher than the previous year. Uranium related sales experienced
lower volumes, but higher realised unit prices. Other revenues decreased by
€45.0 million year on year, primarily driven by one off payments of €44.5
million received in 2020 from the settlement of claims filed by Urenco
relating to the Chapter 11 bankruptcy of a US customer.

 

EBITDA

 

EBITDA for 2021 was €971.1 million, a decrease of €117.0 million (10.8%)
from €1,088.1 million in 2020. The decrease in EBITDA is principally due to
lower revenue, an increase in unit cost of sales expensed due to changes in
inventory costs associated with finished goods and SWU, and an increase in
other operating and administrative expenses. The EBITDA margin for 2021 was
58.2%, compared to 64.0% in 2020.

 

The costs associated with changes to inventories of finished goods and SWU
assets for 2021 were €89.0 million, an increase of €50.3 million from
€38.7 million in 2020. These costs have increased due to underlying
increases in both direct costs of production and in inventory purchase costs.

 

The net costs of nuclear provisions (before exceptional items of €25.6
million in 2020) were €144.4 million in 2021, compared to €138.2 million
in 2020, an increase of €6.2 million. Other operating and administrative
expenses were higher than the prior year at €471.7 million in 2021, compared
to €434.0 million in 2020, an increase of €37.7 million. Other operating
costs were higher, reflecting higher costs for transport, business rates,
consultants, and other third party services.

 

The net costs for tails provisions in 2021 were €30.6 million higher than
those for 2020 (pre-exceptional). Higher costs of tails provisions created
arose due to more tails being generated during 2021 and an uplift in the unit
cost estimates for those tails produced. A change in the assumed discount rate
in 2020 resulted in an increase in costs, which was not repeated in 2021. The
lower release from tails provisions relates to the optimisation of operations
and the impact of the reduction in higher assay tails associated with
enrichment services contracts.

 

The net costs for decommissioning provisions decreased by €25.4 million in
2021, with increased cost estimates associated with the triennial review of
decommissioning, being less significant in size than the impact of the 2020
uplift in discount rates. The net costs for other nuclear provisions in 2021
increased by €1.0 million as a result of changes to the forecasts for future
re-enrichment of low assay feed, from net gains of €20.7 million in 2020 to
net gains of €19.7 million in 2021.

 

No exceptional items were reported in 2021 (2020: charges of €25.6
million).

 

Net Income

 

Net income was €364.5 million in 2021 (2020: €505.3 million
post-exceptional items, €530.9 million pre-exceptional items). The decrease
in net income reflects the impact of lower EBITDA and higher tax expenses
recognised in 2021, resulting in a reduced net income margin of 21.8% compared
to 31.2% in the prior year (pre-exceptional items).

 

Net finance costs for 2021 were lower at €64.3 million, compared to €82.4
million for 2020, reflecting the lower levels of net debt in 2021, foreign
exchange movements on financing activities and lower costs associated with
bond repurchases, partially offset by a reduction in the capitalisation of
interest, mainly as a result of lower interest charges on loans and
borrowings.

 

Depreciation and amortisation for 2021 was broadly flat at €331.0 million,
compared to €328.6 million for 2020.

 

In 2021 the Group's tax expense was €207.0 million (an effective tax rate
(ETR) of 36.2%), an increase of €45.9 million from the tax expense of
€161.1 million (pre-exceptionals) for 2020 (ETR: 23.3%).  Following the May
2021 enacted increase in the UK corporate tax rate to 25.0% from 19.0%,
effective 1 April 2023, the Group's net UK deferred tax liability was revalued
and a non-cash tax charge of €55.7 million was recognised. This charge was
partially offset by the impact of a reduction in profit before tax.

 

Cash Flow

 

Cash generated from operating activities was €1,027.6 million (2020:
€1,171.4 million). The lower cash flows from operating activities primarily
reflect the impact of lower revenues and an unfavourable movement of working
capital balances compared to 2020. In the current year, sales deliveries have
been relatively closer to the year end when compared to the prior year,
resulting in higher trade receivables balances. These trade receivables will
be settled in 2022, in accordance with agreed payment terms.

 

Tax paid in the period was €146.4 million (2020: €36.1 million) due to the
timing and phasing of cash payments which can often span multiple years.

 

Accordingly, net cash flows from operating activities were lower at €881.2
million (2020: €1,135.3 million).

 

Capital Expenditure

 

In 2021 the Group invested a total of €129.8 million (2020: €141.1
million), reflecting a lower level of expenditure on both core enrichment
assets and the TMF. Expenditure on core enrichment assets is now broadly at a
level forecast as part of our strategy to maintain the existing fleet of
enrichment assets for the near to medium term. Investment in TMF in 2021 was
€25.9 million (2020: €35.5 million, 2019: €43.0 million), reflecting
completion of construction in late 2018. The final stage of active
commissioning is well underway, with uranium oxide production having commenced
in 2021.

 

Liquidity

 

In February 2021 the Group repaid €534.4 million of the February 2021
Eurobond at maturity. In October 2021 the Group signed a new
sustainability-linked bank facility of €500 million with ten banks which
matures in 2026, with two optional extensions of one year each.

 

Liquidity continues to remain strong as a result of cash flow generation. As
at 31 December 2021, the Group had €500 million (2020: €750 million) of
undrawn committed bank facilities, as well as cash, cash equivalents and short
term deposits of €1,075.8 million (2020: €1,158.8 million). Our funding
position remains robust and continues to be underpinned by our established
contract order book, which gives high levels of revenue visibility and robust
EBITDA margins, resulting in strong cash flow generation. Furthermore, the
company has sufficient cash available to meet the payment of a €150.0
million dividend in early 2022 and the maturity of €405 million of Eurobonds
later in the year. The Group's debt is rated by Moody's (Baa1/Stable) and
Standard & Poor's (BBB+/Stable); these external ratings were unchanged
during 2021.

 

Provisions

Total provisions as at 31 December 2020 were €2,728.7 million (2020:
€2,355.7 million), of which €3.6 million (2020: €5.2 million) was
included in current liabilities.

 

The tails provision increased by €195.4 million (2020: €250.8 million),
due to tails generated in the year and increases in the applied tails unit
rates. The decommissioning provision increased by €149.3 million due to
revised assumptions relating to the decommissioning of plant and machinery of
€98.7 million, the installation of additional plant and machinery of €36.1
million and additional cylinder purchases of €14.5 million. The impact of
the revised assumptions mainly relates to the triennial review of the core
decommissioning strategy which was performed during 2021.

 

Nuclear liabilities and the associated provisions, together with underlying
macroeconomic assumptions and the required funding capability, are kept under
constant review by Urenco.

 

Order Book

 

Our order book extends to the 2030s with a value as at 31 December 2021 of
€8.7 billion based on €/$ of 1 : 1.14 (31 December 2020: €9.0 billion
based on €/$ of 1 : 1.22), providing visibility and financial stability of
future revenues.

 

Outlook

 

Through our pivotal role in the nuclear fuel cycle and commitment to reducing
our own emissions, Urenco is focused on making a positive contribution to net
zero goals. Our core business will remain the provision of enrichment services
and fuel cycle products from our four global sites. We will also continue to
expand our work in related areas for the civil nuclear industry where we can
add real value through our leading skills, experience and technology, such as
the development of advanced fuels, responsible nuclear stewardship and
increasing our range of stable and medical isotopes.

 

The principal risks and uncertainties to which Urenco is exposed are broadly
in line with those of last year. We are deeply concerned about the current
developments in Ukraine and our thoughts are with the people suffering as a
result of the conflict. We are in contact with our customer and other
stakeholders in Ukraine, offering our support. We continue to monitor and
evaluate developments in Ukraine and the region closely, and we are working
with government partners and other stakeholders in the UK, US and Europe to
assess the potential impact.

 

We anticipate that COVID-19 will continue to cause some disruption in 2022 and
we are well placed to maintain the health and wellbeing of our employees and
the integrity of our operations.

 

The enrichment market is recovering and now approaching a level which allows
us to plan for reinvestment in plant capacity and future decommissioning
requirements. The value of our contract order book remains strong at €8.7
billion and extends into the 2030s.

 

In 2022, we will progress our plans to produce next generation fuels for
current and advanced technologies, increasing both reactor efficiency and
safety. Our roadmap for achieving net zero emissions from our operations will
be finalised, covering our operations, bought services and our supply chain.
We will also explore proposals to further expand our stable and medical
isotopes facility to meet continued growth in this market.

 

Board

 

In 2021 Richard Nourse retired from the Board as UK appointed Non-Executive
Director and was replaced by Michael Harrison. The Board of Urenco greatly
appreciates and thanks Richard for the contribution that he has made to Urenco
during a period of significant growth and consolidation of the company's
position in the enrichment market.

 

-- ENDS --

 

 

Contact

 

Rebecca Astles

Interim Head of Communications

+44 1753 660 660

mediaenquiries@urenco.com (mailto:mediaenquiries@urenco.com)

 

Evan Byrne

+44 7809 390 664

evan.byrne@madano.com

 

 

About Urenco Group

 

Urenco is an international supplier of enrichment services and fuel cycle
products with sustainability at the core of its business. Operating in a
pivotal area of the nuclear fuel supply chain for 50 years, Urenco facilitates
zero carbon electricity generation for consumers around the world.

 

With its head office near London, UK, Urenco's global presence ensures
diversity and security of supply for customers through enrichment facilities
in Germany, the Netherlands, the UK and the USA. Using centrifuge technology
designed and developed by Urenco, and through the expertise of our people, the
Urenco Group provides safe, cost effective and reliable services, operating
within a framework of high environmental, social and governance standards,
complementing international safeguards.

 

Urenco is committed to continued investment in the responsible management of
nuclear materials; innovation activities with clear sustainability benefits,
such as nuclear medicine, industrial efficiency and research; and nurturing
the next generation of scientists and engineers.

 

For more information, please visit urenco.com (https://www.urenco.com/)

 

 

Definitions

 

 Capital Expenditure - Reflects investment in property, plant and equipment
 plus the prepayments in respect of fixed asset and intangible asset purchases
 for the period.

 EBITDA - EBITDA is defined as earnings before exceptional items, interest
 (including other finance costs), taxation, depreciation and amortisation and
 joint venture results. Depreciation and amortisation are adjusted to remove
 elements of such charges included in changes to inventories and SWU assets and
 net costs of nuclear provisions.

 Net Costs of Nuclear Provisions - The net costs charged to the income
 statement associated with the creation and release of provisions for tails,
 decommissioning and re-enrichment of low assay feed.

 Net Debt - Loans and borrowings (current and non-current) plus obligations
 under leases less cash and cash equivalents and short term deposits.

 Net Finance Costs - Finance costs less finance income, net of capitalised
 borrowing costs and including costs/income of non-designated hedges and
 charges/reversals of expected credit losses on financial assets.

 Net Income - Income for the year attributable to equity holders of the parent.

 Order Book - Contracted and agreed business estimated on the basis of
 "requirements" and "fixed commitment" contracts.

 Other Operating and Administrative Expenses - Expenses comprising Raw costs of
 materials and consumables used, Employee costs, Restructuring charges and
 Other expenses, but excluding the Net costs of nuclear provisions.

 Revenue - Revenue from sale of goods and services and net fair value
 gains/losses on commodity contracts.

 Separative Work Unit (SWU) - The standard measure of the effort required to
 increase the concentration of the fissionable U(235) isotope.

 Tails (Depleted UF(6)) - Uranium hexafluoride that contains a lower
 concentration than the natural concentration (0.711%) of U(235) isotope.

 Uranium Related Sales - Sales of uranium in the form of UF(6), U(3)O(8) or the
 UF(6) component of enriched uranium product

 Urenco Nuclear Stewardship Limited - Previously named Capenhurst Nuclear
 Services Limited.

 

 

Disclaimer

 

This press release is not intended to be read as the Group's statutory
accounts as defined in section 435 of the Companies Act 2006. Information
contained in this release is based on the 2021 Consolidated Financial
Statements of the Urenco Group, which were authorised for issue by the Board
of Directors on 9 March 2022. The auditor's report on the 2021 Consolidated
Financial Statements of the Group was unqualified and did not contain a
statement under section 498 of the Companies Act 2006. The Group's 2020
statutory accounts have been delivered to the registrar of companies.

 

This release and the information contained within it does not constitute an
offering of securities or otherwise constitute an invitation or inducement to
underwrite, subscribe for or otherwise acquire securities in any company
within the Urenco Group.

 

Any forward-looking statements contained within this release are inherently
subject to risks and uncertainties. Actual results may differ materially from
those expressed or implied by such forward-looking statements and,
accordingly, any person reviewing this release should not rely on such
forward-looking statements.

 

 

CONSOLIDATED INCOME STATEMENT

 

                                                                                                   2021         2020

Re-presented((i),(ii))

                                                                                                                Result for

                                                                                                                the year

                                                                                                   Result for

                                                                                                    the year

                                                                                            Notes  €m           €m

 Revenue                                                                                    3      1,669.3      1,700.1

 Changes to inventories of work in progress, finished goods and SWU assets((i))                    (89.0)       (43.3)
 Raw costs of materials and consumables used((i))                                                  (16.0)       (13.2)
 Net costs of nuclear provisions((ii))                                                      5,6    (144.4)      (163.8)
 Employee costs                                                                             7      (180.3)      (167.2)
 Depreciation and amortisation                                                              5      (331.0)      (328.6)
 Restructuring provision release                                                            6      0.5          0.9
 Other expenses                                                                             5      (275.9)      (249.9)
 Share of results of joint venture                                                          16     2.6          13.8
 Income from operating activities                                                           5      635.8        748.8

 Finance income                                                                             8      69.3         85.5
 Finance costs                                                                              9      (133.6)      (167.9)
 Income before tax                                                                                 571.5        666.4

 Income tax expense                                                                         10     (207.0)      (161.1)
 Net income for the year attributable to the owners of the Company                                 364.5        505.3

 Earnings per share                                                                                €            €
 Basic earnings per share                                                                   12     2.2          3.0

 

(i)   For the year ended 31 December 2020, an amount of €4.6 million has
been reclassified from Raw costs of materials and consumables used to Changes
to inventories of work in progress, finished goods and SWU assets.

 

(ii)  Net costs of nuclear provisions includes €25.6 million for the year
ended 31 December 2020 classified as exceptional items.

 

 

RECONCILIATION OF INCOME FROM OPERATING ACTIVITIES TO EBITDA

 

 

                                                                     2021                  2020
                                                                                           Result for the year

                                                                     Result for the year

                                                                     €m                    €m
 Income from operating activities (post-exceptionals)                635.8                 748.8
 Exceptional items                                                   -                     25.6
 Income from operating activities (pre-exceptionals)                 635.8                 774.4
 Depreciation and amortisation                                       331.0                 328.6
 Depreciation in inventories and SWU assets                          16.9                  3.8
 Depreciation within net costs of nuclear provisions                 (10.0)                (4.9)
 Joint venture result                                                (2.6)                 (13.8)
 EBITDA                                                              971.1                 1,088.1

 

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

                                                                                 Notes  2021     2020

                                                                                                 Re-presented((i))

                                                                                        €m       €m

 Net income for the year attributable to the owners of the Company                      364.5    505.3

 Other comprehensive income/(loss):

 Items that have been or may be reclassified subsequently to the income
 statement

 Cash flow hedges - recycled in relation to hedges of revenue                    26     (3.9)    38.9
 Cash flow hedges - recycled in relation to hedges of debt((i))                         40.9     (49.6)
 Cash flow hedges - mark to market (losses)/gains on hedges of revenue((i))      26

                                                                                        (69.5)   67.4
 Cash flow hedges - mark to market (losses)/gains on hedges of debt((i))         26

                                                                                        (28.7)   29.3
 Movements on cost of hedging reserve((ii))                                      26     1.5      (6.7)
 Deferred tax income/(expense) on financial instruments                          10     13.8     (18.8)
 Current tax income/(expense) on financial instruments                           10     1.0      (7.7)
 Exchange differences on hedging reserves((iii))                                 26     5.6      8.2
 Total movements to hedging reserves                                                    (39.3)   61.0

 Exchange differences on foreign currency translation of foreign operations

                                                                                        95.4     (111.0)
 Net investment hedge - mark to market gains/(losses)                                   38.8     (12.8)
 Deferred tax income on financial instruments                                           6.7      3.8
 Current tax expense on financial instruments                                           (4.9)    (3.3)
 Share of joint venture exchange differences on foreign currency translation of
 foreign operations

                                                                                        (0.1)                    (0.1)
 Total movements to foreign currency translation reserve                                135.9    (123.4)

 Items that will not be reclassified subsequently to the income statement

 Actuarial gains on defined benefit pension schemes                              31     68.0     1.6
 Deferred tax expense on actuarial gains                                         10     (17.2)   -
 Share of joint venture actuarial gains/(losses) on defined benefit pension
 schemes

                                                                                        5.5                      (1.9)
 Share of joint venture deferred tax (expense)/income on actuarial
 gains/(losses) on defined benefit pension schemes

                                                                                        (0.5)    2.5
 Total movements to retained earnings                                                   55.8     2.2

 Other comprehensive income/(loss)                                                      152.4    (60.2)

 Total comprehensive income for the year attributable to the owners of the              516.9    445.1
 Company

 (i)      Previously, the line items above, cash flow hedges - recycled in
 relation to hedges of debt, cash flow hedges - mark to market (losses)/gains
 on hedges of revenue and cash flow hedges - mark to market (losses)/gains on
 hedges of debt were shown as a single line, cash flow hedges mark to market
 gains/(losses) with a net gain of €47.1 million disclosed in the year ended
 31 December 2020 accounts.

 (ii)     The movements on cost of hedging reserve relate to both Cash Flow
 and Net Investment Hedges.

 (iii)    Exchange differences on the hedging reserves arise as a result of
 the effects of translating the hedging reserves from the functional currency
 of the entities in which the hedging reserves are held to the Group's
 presentational currency.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

                                                                                    31 December

                                                                      31 December   2020

                                                                       2021

                                                               Notes  €m            €m
 Assets
 Non-current assets
 Property, plant and equipment, including right-of-use assets  13     4,510.8       4,308.2
 Investment property                                           14     5.8           5.9
 Intangible assets                                             15     23.3          20.7
 Investments including joint venture                           16     29.7          30.8
 Retirement benefit assets                                     31     51.2          -
 Restricted cash                                               18     0.9           1.5
 Derivative financial instruments                              29     30.4          110.0
 Deferred tax assets                                           10     82.8          114.2
 Contract assets                                               21     35.5          12.1
                                                                      4,770.4       4,603.4
 Current assets
 Inventories                                                   19     146.9         122.4
 SWU assets                                                    20     277.5         313.4
 Contract assets                                               21     12.5          16.3
 Trade and other receivables                                   22     357.9         236.6
 Derivative financial instruments                              29     53.1          126.0
 Income tax recoverable                                               101.4         45.0
 Short term bank deposits                                      23     516.3         528.8
 Cash and cash equivalents                                     24     559.5         630.0
                                                                      2,025.1       2,018.5
 Total assets                                                         6,795.5       6,621.9

 Equity and liabilities
 Equity attributable to the owners of the Company
 Share capital                                                 25     237.3         237.3
 Additional paid in capital                                    25     16.3          16.3
 Retained earnings                                                    1,487.8       1,367.5
 Hedging reserves                                              26     6.8           46.1
 Foreign currency translation                                  26     349.6         213.7
 Total equity                                                         2,097.8       1,880.9
 Non-current liabilities
 Trade and other payables                                      32     38.9          32.5
 Interest bearing loans and borrowings                         29     651.3         1,060.4
 Lease liabilities                                             28     28.1          18.2
 Provisions                                                    30     2,721.5       2,350.5
 Contract liabilities                                          27     126.1         74.4
 Derivative financial instruments                              29     56.5          64.6
 Deferred tax liabilities                                      10     261.9         159.1
 Retirement benefit obligations                                31     30.9          56.8
                                                                      3,915.2       3,816.5
 Current liabilities
 Trade and other payables                                      32     229.4         242.8
 Interest bearing loans and borrowings                         29     404.7         534.3
 Lease liabilities                                             28     3.2           1.6
 Provisions                                                    30     3.6           5.2
 Contract liabilities                                          27     62.6          61.4
 Derivative financial instruments                              29     62.7          51.9
 Income tax payable                                                   16.3          27.3
                                                                      782.5         924.5
 Total liabilities                                                    4,697.7       4,741.0
 Total equity and liabilities                                         6,795.5       6,621.9

 

The financial statements were approved by the Board of Directors and
authorised for issue on 9 March 2022.

 

They were signed on its behalf
by:
Registered Number 01022786

 

 

 

Boris Schucht
                                                                                               Ralf
ter Haar

Chief Executive
Officer
Chief Financial Officer

 

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

                                                                                                                               Foreign currency translation reserve  Attributable to the owners of the Company

                                                      Additional paid in capital

                                      Share capital                                Retained earnings   Hedging reserves((i))   €m                                    €m

                                                      €m

                                      €m                                           €m                  €m
                                      237.3           16.3                         1,367.5             46.1                    213.7                                 1,880.9

 As at 31 December 2020
 Income for the year                  -               -                            364.5               -                       -                                     364.5
 Other comprehensive income/(loss)    -               -                            55.8                (39.3)                  135.9                                 152.4
 Total comprehensive income/(loss)    -               -                            420.3               (39.3)                  135.9                                 516.9
 Equity dividends paid (see note 11)  -               -                            (300.0)             -                       -                                     (300.0)
 As at 31 December 2021               237.3           16.3                         1,487.8             6.8                     349.6                                 2,097.8

 

                                                                                                                               Foreign currency translation reserve  Attributable to the owners of the Company

                                                      Additional paid in capital

                                      Share capital                                Retained earnings   Hedging reserves((i))   €m                                    €m

                                                      €m

                                      €m                                           €m                  €m
                                      237.3           16.3                         1,310.0             (14.9)                  337.1                                 1,885.8

 As at 31 December 2019
 Income for the year                  -               -                            505.3               -                       -                                     505.3
 Other comprehensive income/(loss)    -               -                            2.2                 61.0                    (123.4)                               (60.2)
 Total comprehensive income/(loss)    -               -                            507.5               61.0                    (123.4)                               445.1
 Equity dividends paid (see note 11)  -               -                            (450.0)             -                       -                                     (450.0)
 As at 31 December 2020               237.3           16.3                         1,367.5             46.1                    213.7                                 1,880.9

 

(i)      The hedging reserves are comprised of a cash flow hedging
reserve and a cost of hedging reserve.

 

 

CONSOLIDATED CASH FLOW STATEMENT

 

                                                                          Notes                                  2021                                                                  2020

                                                                                                                                                                                       Re-presented((i))

                                                                                                                 €m                                                                    €m
 Income before tax                                                                                               571.5                                                                 666.4
 Adjustments to reconcile Group income before tax to net cash flows from
 operating activities:
 Share of joint venture results                                                                            16    (2.6)                                                                 (13.8)
 Depreciation and amortisation                                                                             5     331.0                                                                 328.6
 Finance income                                                                                            8     (69.3)                                                                (85.5)
 Finance costs                                                                                             9     133.6                                                                 167.9
 Loss on disposal/write offs of property, plant and equipment                                                    2.1                                                                   3.4
 Increase in provisions                                                                                    6     59.9                                                                  94.1
 Operating cash flows before movements in working capital

                                                                                                                 1,026.2                                                               1,161.1
 Increase in inventories

                                                                                                                 (2.1)                                                                 (10.4)
 Decrease/(increase) in SWU assets                                                                               40.0                                                                  (26.5)
 (Increase)/decrease in receivables and other debtors                                                            (126.1)                                                               1.9
 Increase in payables and other creditors                                                                        89.6                                                                  45.3
 Cash generated from operating activities                                                                        1,027.6                                                               1,171.4
 Income taxes paid                                                                                               (146.4)                                                               (36.1)
 Net cash flow from operating activities                                                                         881.2                                                                 1,135.3
 Investing activities
 Interest received                                                                                               30.6                                                                  49.7
 Payments on maturing swaps hedging matured debt                                                                 (32.5)                                                                -
 Maturity of short-term deposits((i))                                                                            701.1                                                                 835.0
 Placement of short-term deposits((i))                                                                           (688.6)                                                               (899.7)
 Purchases of property, plant and equipment                                                                      (141.8)                                                               (150.8)
 Purchases of intangible assets                                                                                  (1.7)                                                                 (1.0)
 Decrease in investment including joint venture                           16                                     12.5                                                                  5.0
 Net cash flow from investing activities((i))                                                                    (120.4)                                                               (161.8)
 Financing activities
 Interest paid                                                                                                   (83.8)                                                                (112.8)
 Receipts on maturing swaps hedging matured debt                                                                 75.3                                                                  -
 Dividends paid to equity holders                                         11                                     (300.0)                                                               (450.0)
 Repayment of borrowings                                                                                         (534.4)                                                               (95.0)
 Repayment of lease liabilities                                                                                  (1.8)                                                                 (2.5)
 Net cash flow from financing activities((i))                                                                    (844.7)                                                               (660.3)
 Net (decrease)/increase in cash and cash equivalents                                                            (83.9)                                                                313.2
 Cash and cash equivalents at 1 January                                                                          630.0                                                                 323.2
 Effect of foreign exchange rate changes                                                                         13.4                                                                  (6.4)
 Cash and cash equivalents at 31 December((ii))                           24                                     559.5                                                                 630.0

 (i)   The Maturity of short term deposits and the Placement of short term
 deposits were presented within cash flows from financing activities in the
 year ended 31 December 2020.

 (ii)  In addition to Cash and cash equivalents, the Group held Short term
 bank deposits of €506.2 million (2020: €528.8 million).

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