- Part 2: For the preceding part double click ID:nRSb2520Ya
Average debt maturity 21 years
· Fair value of debt £190m less than book value
(1) Before exceptional credit of £14.9m (post tax £11.9m)
(2) Earnings per share before exceptional credit, deferred tax and adjusted proportionately to reflect the
half year impact of the annual hybrid capital periodic return
(3) Including construction spend on service concession arrangements
(4) Including £174m deposits with Letter of Credit providers and lessors
(5) Excluding pensions net interest, IFRIC 12 contract interest receivable and discount unwind on
provisions
DIVIDEND
The interim dividend of 9.98p per share
represents an increase of 6.3%, in line
with the previously announced policy to
grow the Group dividend by 4% per annum
above inflation up to the end of 2014/15.
The dividend will be paid on 2 April 2015
to shareholders on the register on 30
January 2015. The Company is also offering
a scrip dividend alternative. The final
date for receipt of forms of
election/mandate in respect of the scrip
dividend alternative for the interim
dividend will be 9 March 2015. As
announced at our Preliminary Results last
June, the Board will review the dividend
policy for the K6 period following the
Final Determination for South West Water
and will make an announcement at the
2014/15 Preliminary Results.
OUTLOOK
The Board's priority continues to be the
creation of shareholder value through its
strategic focus on water and sewerage
services; and recycling, renewable energy
and waste management.
South West Water is continuing its strong
performance with robust operational
delivery and high standards of customer
service and financial performance. Early
receipt of Ofwat's Draft Determination is
allowing the accelerated delivery of key
projects identified in the company's
business plan for K6 (2015-2020). With
South West Water's track record of
efficiency and outperformance, the company
is well placed to deliver its business
plan and will have an opportunity to
outperform the assumed returns on equity.
Viridor's financial performance in the
first half of this year has been in line
with management expectations. The ERFs
coming on stream this year are expected to
boost EBITDA in the second half of 2014/15
and result in 2014/15 full year EBITDA for
Viridor exceeding 2013/14. The company
has made excellent progress in
establishing its ERF business - two plants
came on stream this half year. These
projects and contracts already contribute
to Viridor's bottom line and reflect the
realisation of a strategy which is
expected to contribute circa £100m to
Viridor's EBITDA in 2016/17.
The Group is well positioned for the
future, with efficient long term
financing.
SOUTH WEST WATER
South West Water has continued to
deliver good operational
performance in the last year of
the K5 (2010-2015) regulatory
period alongside further
improvements to customer service.
This is supported by strong
financial results - arising from
good cost control and continued
efficiency delivery.
South West Water's business plan