REG - Pennon Group PLC - Pennon Group Half Year Results 2015/16 <Origin Href="QuoteRef">PNN.L</Origin> - Part 3
27/11/2015 07:11
- Part 3: For the preceding part double click ID:nRSa1477Hb
funds (14.9) (0.6)
Purchase of ordinary shares by the Pennon
Employee Share Trust (1.1) (0.8)
Proceeds from new borrowing 130.0 130.0
Repayment of borrowings (95.1) (20.1)
Finance lease sale and leaseback 0.9 89.6
Finance lease principal repayments (15.0) (88.0)
Dividends paid (37.7) (26.8)
Net cash received from financing
Activities 69.2 86.6
Net increase in cash and cash equivalents 20.0 80.4
Cash and cash equivalents at beginning of period 14 574.8 439.9
Cash and cash equivalents at end of period 14 594.8 520.3
The notes on pages 37 to 52 form part of this condensed half year financial information.
PENNON GROUP PLC
Notes to the condensed half year financial information
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 52.
Pennon Group's business
is operated through
three main subsidiaries.
South West Water
Limited holds the water
and wastewater services
appointments for Devon,
Cornwall and parts of
Dorset and Somerset.
Bournemouth Water
Limited holds the water
appointments for parts
of Dorset, Hampshire and
Wiltshire. Viridor
Limited's business is
renewable energy,
recycling and waste
management.
This condensed half year
financial information
was approved by the
Board of Directors on 26
November 2015.
The financial
information for the
period ended 30
September 2015 does not
constitute statutory
accounts within the
meaning of section 435
of the Companies Act
2006. The statutory
accounts for 31 March
2015 were approved by
the Board of Directors
on 22 June 2015 and have
been delivered to the
Registrar of Companies.
The independent
auditor's report on
these financial
statements was
unqualified, and did not
contain a statement
under section 498 of the
Companies Act 2006.
2. Basis of preparation
This condensed half year
financial information
has been prepared in
accordance with the
Disclosure and
Transparency Rules of
the Financial Services
Authority and with IAS
34 "Interim financial
reporting" as adopted by
the European Union (EU).
This condensed half year
financial information
should be read in
conjunction with the
Pennon Group Plc Annual
Report and Accounts for
the year ended 31 March
2015, which were
prepared in accordance
with International
Financial Reporting
Standards (IFRSs) as
adopted by the EU.
Having made enquiries,
the Directors consider
that the Company and its
subsidiary undertakings
have adequate resources
to continue in business
for the foreseeable
future, and that it is
therefore appropriate to
adopt the going concern
basis in preparing the
condensed half year
financial information.
This condensed half year
financial information
has been reviewed but
not audited by the
independent auditor
pursuant to the Auditing
Practices Board guidance
on the "Review of
Interim Financial
Information".
The preparation of the
half year financial
information 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. The
significant judgements
made by management in
applying the Group's
accounting policies and
the key sources of
estimation uncertainty
are consistent with
those that applied to
the consolidated
financial statements for
the year ended 31 March
2015, with the exception
of changes in estimates
that are required in
determining the half
year provision of income
taxes.
3. Accounting policies
The accounting policies
adopted in this
condensed half year
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 2015 and
are in accordance with
all IFRSs and
interpretations of the
IFRS Interpretations
Committee expected to be
applicable for the year
ended 31 March 2016 in
issue which have been
adopted by the EU.
New standards or
interpretations which
were mandatory for the
first time in the year
beginning 1 April 2015
did not have a material
impact on the net assets
or results of the Group.
The tax charge for
September 2015 and
September 2014 has been
derived by applying the
anticipated effective
annual rate to the first
half year profit before
tax.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
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 business
comprises the regulated
water and wastewater
services undertaken by
South West Water Limited
and the regulated water
services undertaken by
Bournemouth Water
Limited. The waste
management business is
the renewable energy,
recycling and waste
management services
provided by Viridor
Limited.
Unaudited
Half year Half year
ended ended
30 September 30 September
2015 2014
£m £m
Revenue
Water 279.3 268.3
Waste management 410.1 424.4
Other 6.1 5.3
Less intra-segment (6.4) (5.7)
trading
689.1 692.3
Segment result
Operating profit before
depreciation,
amortisation
and exceptional items (EBITDA)
Water 173.6 172.2
Waste management 61.0 28.1
Other (2.9) (0.3)
231.7 200.0
Operating profit before
exceptional items
Water 117.7 119.2
Waste management 20.5 0.2
Other (2.9) (0.2)
135.3 119.2
Profit before tax and
exceptional items
Water 87.0 86.2
Waste management 12.9 4.7
Other 6.9 9.1
106.8 100.0
Profit before tax
Water 87.0 98.0
Waste management 12.9 6.6
Other 6.9 10.3
106.8 114.9
Intra-segment
transactions between and
to other segments are
under normal commercial
terms and conditions.
Intra-segment revenue or
interest receivable of
one segment is a cost or
interest payable of
another.
Factors such as seasonal
weather patterns can
affect sales volumes,
income and costs in both
the water and waste
management segments.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
4. Segmental information (continued)
Geographic analysis of revenue based on location of customers
Unaudited
Half year ended 30 September2015 Half year ended30 September2014
£m £m
UK 664.2 671.5
Rest of European Union 4.5 5.0
China 12.2 13.7
Rest of World 8.2 2.1
689.1 692.3
The Group's country of domicile is the United Kingdom and is the country in which it generates the majority of its revenue. The Group's non-current assets are located in the United Kingdom.
5. Exceptional items
Exceptional items are those that in the Directors' view are required to be separately disclosed by virtue of their size or incidence to enable a full understanding of the Group's financial performance.
Unaudited
Half year ended 30 September2015 Half year ended30 September2014
£m £m
Operating costs
Pension costs - past service credit - 14.9
Tax charge on exceptional items - (3.0)
Credit for the period after tax
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