REG - Pennon Group PLC - Final Results <Origin Href="QuoteRef">PNN.L</Origin> - Part 8
15/07/2015 18:30
- Part 8: For the preceding part double click ID:nRST7139Ng
8.5 116.3 - (0.5) - 124.3
Adjustment in respect of share-based
payments (net of tax) - - - 3.5 - 3.5
Distributions due to perpetual capital security
holders - - - - (20.3) (20.3)
Current tax relief on distributions to perpetual capital security holders - - - - 4.3 4.3
Own shares acquired by the Pennon
Employee Share Trust in respect of share options granted - - - (0.8) - (0.8)
Proceeds from treasury shares re-issued - - - 3.9 - 3.9
11.1 113.7 - (62.9) (16.0) 45.9
At 31 March 2015 162.4 118.6 144.2 634.1 294.8 1,354.1
Consolidated statement of cash flows for the year ended 31 March 2015
Unaudited
2015 2014
Note £m £m
Cash flows from operating activities
Cash generated from operations 12 310.9 338.0
Interest paid (62.0) (65.3)
Tax paid (21.0) (58.1)
Net cash generated from operating activities 227.9 214.6
Cash flows from investing activities
Interest received 20.3 26.5
Loan repayments received from joint ventures 0.3 0.3
Dividends received from joint ventures 6.0 8.5
Purchase of property, plant and equipment (298.1) (346.7)
Proceeds from sale of property, plant and equipment 5.7 5.4
Net cash used in investing activities (265.8) (306.0)
Cash flows from financing activities
Proceeds from treasury shares re-issued 10 3.9 2.4
Deposit of restricted funds (23.0) (29.6)
Purchase of ordinary shares by the Pennon
Employee Share Trust (0.8) (0.4)
Proceeds from new borrowing 345.0 294.0
Repayment of borrowings (123.6) (146.1)
Finance lease sale and leaseback 160.1 40.5
Finance lease principal repayments (99.5) (30.3)
Dividends paid (69.0) (69.4)
Perpetual capital securities periodic return (20.3) (20.3)
Net cash generated from financing activities 172.8 40.8
Net increase/(decrease) in cash and cash
equivalents 134.9 (50.6)
Cash and cash equivalents at beginning of year 13 439.9 490.5
Cash and cash equivalents at end of year 13 574.8 439.9
Notes
1. General information
Pennon Group Plc is a company registered in the United
Kingdom under the Companies Act 2006. The address of
the registered office is given on page 49. Pennon
Group's business is operated through two main
subsidiaries. South West Water Limited holds the water
and sewerage appointments for Devon, Cornwall and parts
of Dorset and Somerset. Viridor Limited's business is
renewable energy, recycling and waste management.
The financial information for the years ended 31 March
2015 and 31 March 2014 does not constitute full
financial statements within the meaning of section 434
of the Companies Act 2006. The full financial
statements for 31 March 2014 were approved by the Board
of Directors on 23 June 2014 and have been delivered to
the Registrar of Companies. The independent auditors'
report on those financial statements was unqualified and
did not contain a statement under section 498 of the
Companies Act 2006.
2. Basis of preparation
The accounting policies adopted in the unaudited
financial information are consistent with those applied
and set out in the Pennon Group Plc Annual Report and
Accounts for the year ended 31 March 2014 (which are
available on the Company website www.pennon
-group.co.uk), except as described in note 3, and are
also in accordance with all International Financial
Reporting Standards (IFRS) and interpretations of the
IFRS Interpretations Committee applicable for the year
ended 31 March 2015 in issue which have been adopted by
the European Union.
3. Accounting policies
New or revised standards or interpretations, listed
below, which were mandatory for the first time in the
year beginning 1 April 2014 did not have a material
impact on the net assets or results of the Group.
· IFRS 10, 'Consolidated financial statements'. Under IFRS 10, subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group has power over an entity, is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect these returns through its power over the entity.
The new standard IFRS 10 has no financial impact on the Group.
· IFRS 11, 'Joint arrangements'. Under IFRS 11, investments in Joint arrangements are classified as Joint ventures based on contractual rights and obligations each investor has rather than the legal structure of the joint arrangement.
Under IFRS 11 entities can no longer account for an interest in a joint venture using the proportionate consolidation method and must use the equity method in accordance with IAS 28, Investments in associates.
The new standard IFRS 11 has no financial impact on the Group. All joint ventures continue to be recognised using the equity method.
· IFRS 12, 'Disclosure of interests in other entities'. IFRS 12 sets out the required disclosures for entities reporting under the two new standards noted above. The new standard requires additional disclosure in relation to subsidiaries, associates and joint arrangements.
The new standard IFRS 12 has no financial impact on the Group, although further disclosure of joint arrangements will be presented in the 2014/15 financial statements.
Other standards or interpretations which were mandatory
for the first time in the year beginning 1 April 2014
did not have a material impact on the net assets or
results of the Group.
Standards and interpretations in issue, but not yet
effective, are not expected to have a material effect on
the Group's net assets or results, except the following
set out below:
· IFRS 9, 'Financial instruments', addresses the
classification, measurement and recognition of financial
assets and financial liabilities, including the
relaxation of certain hedging requirements. The complete
version of IFRS 9 was issued in July 2014. It will
replace the guidance in IAS 39 that relates to the
classification and measurement of financial instruments.
The standard is effective for accounting periods
beginning on or after 1 January 2018 and is subject to
EU endorsement.
· IFRS 15, 'Revenue from contracts with customers' relates
to revenue recognition and establishes principles for
reporting useful information to users of financial
statements about the nature, amount, timing and
uncertainty of revenue and cash flows arising from an
entity's contracts with customers. The standard will
replace IAS 18 'Revenue' and IAS 11 'Construction
contracts' and related interpretations. The standard is
effective for annual periods beginning on or after 1
January 2017 and is subject to EU endorsement.
The Group is currently assessing the impact of adopting IFRS 9 and IFRS 15 on the Group's financial reporting, which is expected to result in increased disclosure of the Group's revenue.
4. Segmental information
Operating segments are reported in a manner consistent with internal reporting provided to the Chief Operating Decision-Maker, which has been identified as the Pennon Group Plc Board.
The water and sewerage business comprises the regulated water and sewerage services undertaken by South West Water Limited. The waste management business is the renewable energy, recycling and waste management services provided by Viridor Limited.
2015
(Unaudited) 2014
£m £m
Revenue
Water and sewerage 522.2 520.0
Waste management 835.9 802.0
Other 10.9 11.2
Less intra-segment trading * (11.8) (12.0)
1,357.2 1,321.2
Segment result
Operating profit before depreciation, amortisation
and exceptional items (EBITDA)
Water and sewerage 331.3 330.9
Waste management 80.4 76.3
Other (0.7) 0.1
411.0 407.3
Operating profit before exceptional items
Water and sewerage 225.4 227.0
Waste management 21.6 30.2
Other (0.4) 0.3
246.6 257.5
Profit before tax and exceptional items
Water and sewerage 167.9 162.5
Waste management 27.7 27.6
Other 15.1 17.2
210.7 207.3
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