REG - National Grid PLC National Grid Gas - NGG plc - Half Year Report - 30 Sept 2015 <Origin Href="QuoteRef">NG.L</Origin> - Part 2

National GridAnnouncement

18/11/2015 16:35

- Part 2: For the preceding part double click  ID:nRSR2097Ga 

  (68)  (46)  
 Net gains/(losses) for the period  3     (2)   
 Settlements                        (1)   (1)   
 At 30 September                    (66)  (49)  
 
 
At 30 September 
 
(66) 
 
(49) 
 
3.      Gains of £3m (2014: loss of £2m) are attributable to derivative
financial instruments held at the end of the reporting period. 
 
7. Reconciliation of net cash flow to movement in net debt 
 
 Six months ended 30 September                                                           2015     2014       
                                                                                         £m       £m         
                                                                                                             
 Decrease in cash and cash equivalents                                                   (7)      (3)        
 (Decrease)/increase in financial investments                                            (207)    189        
 Decrease in borrowings and related derivatives                                          582      202        
 Net interest paid on the components of net debt                                         71       70         
                                                                                                             
 Change in net debt resulting from cash flows                                            439      458        
 Changes in fair value and exchange movements                                            (4)      (7)        
 Net interest charge on the components of net debt                                       (113)    (149)      
                                                                                                             
 Movement in net debt (net of related derivative financial instruments) in the period    322      302        
 Net debt (net of related derivative financial instruments) at start of period           (8,520)  (8,440)    
                                                                                                             
 Net debt (net of related derivative financial instruments) at end of period             (8,198)  (8,138)    
                                                                                                           
 
 
8. Net debt 
 
                                           30 September 2015  31 March  
                                                              2015      
                                           £m                 £m        
                                                                        
 Cash and cash equivalents                 -                  1         
 Bank overdrafts                           (6)                -         
 Net cash and cash equivalents             (6)                1         
 Financial investments                     175                384       
 Borrowings (excluding bank overdrafts)    (8,772)            (9,349)   
 Derivatives                               405                444       
                                                                        
 Total net debt                            (8,198)            (8,520)   
                                                                        
 
 
9. Commitments and contingencies 
 
At 30 September 2015 there were commitments for future capital expenditure
contracted but not provided for of £316 million (31 March 2015: £446
million). 
 
We also have other commitments relating primarily to energy purchase
commitments, operating leases and contingencies in the form of certain
guarantees and letters of credit. These commitments and contingencies are
described in further detail on page 64 of the Annual Report and Accounts
2014/15. 
 
Litigation and claims 
 
Through the ordinary course of our operations, we are party to various
litigation, claims and investigations. We do not expect the ultimate
resolution of any of these proceedings to have a material adverse effect on
our results of operations, cash flows or financial position. 
 
10. Related party transactions 
 
Related party transactions in the six months ended 30 September 2015 were the
same in nature to those disclosed on page 65 of the Annual Report and Accounts
2014/15. There were no related party transactions in the period that have
materially affected the financial position or performance of the Group. 
 
11. Principal risks and uncertainties 
 
The principal risks and uncertainties which could affect National Grid Gas plc
for the remaining six months of the financial year are consistent with those
disclosed for the year ended 31 March 2015 on pages 22 and 23 of the National
Grid Gas plc Annual Report and Accounts 2014/15. Our overall risk management
process is designed to identify, manage, and mitigate our business risks,
including financial risks. 
 
The principal risks and uncertainties included in the National Grid Gas plc
Annual Report and Accounts 2014/15 are as follows: 
 
·      Aspects of the work we do could potentially harm employees,
contractors, members of the public or the environment. 
 
·      We may suffer a major network failure or interruption, or may not be
able to carry out critical operations due to the failure of infrastructure,
data, technology or a lack of supply. 
 
·      Changes in law or regulation or decisions by governmental bodies or
regulators could materially adversely affect us. 
 
·      Current and future business performance may not meet our expectations
or those of our regulators and stakeholders. 
 
·      Changes in interest rates could materially impact earnings or our
financial condition. 
 
·      Our results of operations could be affected by inflation or deflation. 
 
·      We may be required to make significant contributions to fund pension
and other post-retirement benefits. 
 
·      An inability to access capital markets at commercially acceptable
interest rates could affect how we maintain and grow our businesses. 
 
·      Customers and counterparties may not perform their obligations. 
 
12. National Grid Gas plc to adopt FRS 102 in company financial statements 
 
National Grid Gas plc (the Company) prepares its annual company financial
statements in accordance with UK GAAP. The Financial Reporting Council, which
is responsible for UK accounting standards, has withdrawn the previous
accounting standards and issued new financial reporting standards.  Under the
new financial reporting standards, the Company may choose to adopt either FRS
101 or FRS 102 to prepare its company financial statements for the year ending
31 March 2016. The Company intends to adopt FRS 102. 
 
Statement of Directors' Responsibilities 
 
The half year financial information is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half year report in accordance with the Disclosure and Transparency Rules
(DTR) of the United Kingdom's Financial Conduct Authority. 
 
The Directors confirm that the financial information has been prepared in
accordance with IAS 34 as issued by the International Accounting Standards
Board and as adopted by the European Union, and that the half year report
herein includes a fair review of the information required by DTR 4.2.7. 
 
The Directors of National Grid Gas plc are as listed in the National Grid Gas
plc Annual Report and Accounts for the year ended 31 March 2015 with the
exception of the following changes to the Board: 
 
·      Nick Winser resigned 1 July 2015 
 
·      Emma Fitzgerald resigned 30 April 2015 
 
·      Chris Train appointed 1 July 2015 
 
·      Mike Calviou resigned 24 September 2015 
 
·      Cordi O'Hara appointed 24 September 2015 
 
·      Neil Pullen resigned 25 September 2015 
 
·      Pauline Walsh appointed 25 September 2015 
 
By order of the Board 
 
……………………..                                              …………………….. 
 
John Pettigrew                                                     Andy Agg 
 
17 November 2015                                             17 November 2015 
 
Chairman                                                              Chief
Financial Officer 
 
Independent review report to National Grid Gas plc 
 
Report on the condensed consolidated interim financial statements 
 
Our conclusion 
 
We have reviewed National Grid Gas plc's consolidated interim financial
statements (the "interim financial statements") in the half year financial
information of National Grid Gas plc for the 6 month period ended 30 September
2015. Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with International Accounting Standard 34,
'Interim Financial Reporting', as adopted by the European Union and the
Disclosure Rules and Transparency Rules of the United Kingdom's Financial
Conduct Authority. 
 
This conclusion is to be read in the context of what we say in the remainder
of this report. 
 
What we have reviewed 
 
The interim financial statements comprise: 
 
·  the consolidated statement of financial position as at 30 September 2015; 
 
·  the consolidated interim income statement and consolidated statement of
comprehensive income for the period then ended; 
 
·  the consolidated interim statement of cash flows for the period then
ended; 
 
·  the consolidated interim statement of changes in equity for the period then
ended; and 
 
·  the explanatory notes to the interim financial statements. 
 
The interim financial statements included in the half year financial
information have been prepared in accordance with International Accounting
Standard 34, 'Interim Financial Reporting', as adopted by the European Union
and the Disclosure Rules and Transparency Rules of the United Kingdom's
Financial Conduct Authority. 
 
As disclosed in note 1 to the interim financial statements, the financial
reporting framework that has been applied in the preparation of the full
annual financial statements of the Group is applicable law and International
Financial Reporting Standards (IFRSs) as adopted by the European Union. 
 
Responsibilities for the interim financial statements and the review 
 
Our responsibilities and those of the directors 
 
The half year financial information, including the interim financial
statements, is the responsibility of, and has been approved by, the directors.
The directors are responsible for preparing the half year financial
information in accordance with the Disclosure Rules and Transparency Rules of
the United Kingdom's Financial Conduct Authority. 
 
Our responsibility is to express a conclusion on the interim financial
statements in the half year financial information based on our review. This
report, including the conclusion, has been prepared for and only for the
Company for the purpose of complying with the Disclosure Rules and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose.  We do not, in giving this conclusion, accept or assume
responsibility for any other purpose or to any other person to whom this
report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing. 
 
What a review of interim financial statements involves 
 
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410, 'Review of Interim Financial Information
Performed by the Independent Auditor of the Entity' issued by the Auditing
Practices Board for use in the United Kingdom. A review of interim financial
information consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. 
 
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK and Ireland) and, consequently,
does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion. 
 
We have read the other information contained in the half year financial
information and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements. 
 
PricewaterhouseCoopers LLP 
 
Chartered Accountants 
 
London 
 
17 November 2015 
 
The maintenance and integrity of the National Grid plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred to the interim
financial statements since they were initially presented on the website. 
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions. 
 
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