REG - Pennon Group PLC - Pennon Group Half Year Results 2015/16 <Origin Href="QuoteRef">PNN.L</Origin> - Part 4
27/11/2015 07:11
- Part 4: For the preceding part double click ID:nRSa1477Hc
- 11.9
In the six months to September 2014 an exceptional credit before tax of £14.9m was recognised relating to changes made to the Group's defined benefit pension scheme. Changes implemented during that period capped pensionable pay for active members, reducing past service cost.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
6. Net finance costs
Unaudited
Half year ended Half year ended
30 September 2015 30 September 2014
Finance Finance Finance Finance
cost income Total cost income Total
£m £m £m £m £m £m
Cost of servicing debt
Bank borrowings and overdrafts (25.4) - (25.4) (12.5) - (12.5)
Interest element of finance lease
Rentals (17.4) - (17.4) (18.3) - (18.3)
Other finance costs (2.0) - (2.0) (1.9) - (1.9)
Interest receivable - 3.8 3.8 - 2.8 2.8
Interest receivable on shareholder
loans to joint ventures - 5.7 5.7 - 5.6 5.6
(44.8) 9.5 (35.3) (32.7) 8.4 (24.3)
Notional interest
Interest receivable on service
concession arrangements - 8.3 8.3 - 5.8 5.8
Retirement benefit obligations (1.2) - (1.2) (1.7) - (1.7)
Unwinding of discounts on
Provisions (5.5) - (5.5) (5.5) - (5.5)
(6.7) 8.3 1.6 (7.2) 5.8 (1.4)
Net gains on non-designated
derivative financial instruments - 4.2 4.2 - 4.1 4.1
(51.5) 22.0 (29.5) (39.9) 18.3 (21.6)
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
7. Taxation
Unaudited
Half year Half year
ended ended
30 September 30 September
2015 2014
£m £m
Analysis of charge :
Current tax charge 3.8 7.2
Deferred tax charge 18.1 14.2
Tax charge before exceptional items 21.9 21.4
Tax on exceptional items - 3.0
21.9 24.4
UK corporation tax is calculated at 20% (2014 21%) of the estimated assessable profit for the year. The tax charge for September 2015 and September 2014 has been derived by applying the anticipated effective annual tax rate to the first half year profit before tax.
Tax on amounts included in the consolidated statement of comprehensive income, or directly in equity, is included in those statements respectively.
The effective tax rate for the period before the impact of exceptional items was 21% (2014 21%).
Had the Government proposals contained in the Finance (No 2) Act 2015, to reduce the rate of corporation tax by 1% for the financial year 2017 and a further 1% for the financial year 2020, been enacted at 30 September 2015 the deferred tax liability would have been approximately £27m lower.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
8. Earnings per share
Basic earnings per share are calculated by dividing
the earnings attributable to ordinary shareholders
by the weighted average number of ordinary shares
outstanding during the period, excluding those held
in the employee share trust which are treated as
cancelled. For diluted earnings per share the
weighted average number of ordinary shares is
adjusted to include all dilutive potential ordinary
shares.
The weighted average number of shares and earnings
used in the calculations were:
Unaudited
Half yearended 30 September2015 Half year ended30 September2014
Number of shares (millions)
For basic earnings per share 409.9 383.5
Effect of dilutive potential ordinary shares from
share options 1.6 1.7
For diluted earnings per share 411.5 385.2
Basic and diluted earnings per ordinary share
Adjusted earnings per share are presented to
provide a more useful comparison on business trends
and performance. Exceptional items are adjusted
for as by nature and size they can distort
comparison of business trends. Deferred tax is
adjusted for as it reflects distortive effects of
changes in corporation tax rates and the level of
long term investment. The annual perpetual capital
return is recognised in full at the half year, so
is proportionately adjusted to allow a more useful
comparison at the half year.
Earnings per share have been calculated:
Unaudited
Half year ended Half year ended
30 September 2015 30 September 2014
Earnings per Earnings per
Profit ordinary share Profit ordinary share
after tax Basic Diluted after tax Basic Diluted
£m p p £m p p
Statutory earnings 68.7 16.8 16.7 74.5 19.4 19.3
Deferred tax charge
before exceptional items
(note 7) 18.1 4.4 4.4 14.2 3.7 3.7
Exceptional items (net of tax)
(note 5) - - - (11.9) (3.1) (3.1)
Proportionate impact of
perpetual capital returns
(note 12) 8.1 2.0 2.0 8.0 2.1 2.1
Adjusted earnings 94.9 23.2 23.1 84.8 22.1 22.0
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
9. Dividends to ordinary shareholders
Amounts recognised as distributions to ordinary shareholders in the period :
Unaudited
Half yearended 30 September2015 Half year ended30 September2014
£m £m
Interim dividend paid for the year ended
31 March 2015 : 9.98p (2014 9.39p) per share 39.8 34.8
Final dividend approved for the year ended
31 March 2015 : 21.82p (2014 20.92p) per
share 89.7 82.2
129.5 117.0
Proposed interim dividend Unaudited
Half yearended 30 September2015 Half year ended30 September2014
£m £m
Proposed interim dividend for the year ended
31 March 2016 : 10.46p (2015 9.98p) per share 43.1 39.8
The proposed interim dividend of 10.46p per share will be paid on 1 April 2016 to shareholders on the register on 29 January 2016.
The proposed interim dividend has not been included as a liability in this condensed half year financial information.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
10. Share capital
Allotted, called up and fully paid
Unaudited
1 April 2014 to 30 September 2014 Number of shares
Treasury shares Ordinary shares £m
At 1 April 2014 ordinary shares of 40.7p each 1,282,690 370,552,276 151.3
Shares issued in respect of the £125m
convertible bond - 20,909,635 8.5
Shares issued under the scrip dividend alternative - 1,982,455 0.8
Shares re-issued under the Company's
Performance and Co-investment Plan (131,685) 131,685 -
For consideration of £0.8m, shares re-issued
to the Pennon Employee Share Trust (104,482) 104,482 -
For consideration of £2.5m, shares re-issued
under the Company's Sharesave Scheme (587,156) 587,156 -
At 30 September 2014 ordinary shares in issue of 40.7p each 459,367 394,267,689 160.6
Shares to be issued under the scrip dividend alternative - 4,383,167 1.8
459,367 398,650,856 162.4
Unaudited
1 April 2015 to 30 September 2015 Number of shares
Treasury shares Ordinary shares £m
At 1 April 2015 ordinary shares of 40.7p each 389,515 398,720,708 162.4
Shares issued in respect of the equity issuance - 12,084,337 4.9
Shares issued under the scrip dividend alternative - 236,033 0.1
Shares re-issued under the Company's
Performance and Co-investment Plan (8,305) 8,305 -
For consideration of £1.1m, shares re-issued
to the Pennon Employee Share Trust (143,538) 143,538 -
For consideration of £1.4m, shares re-issued
under the Company's Sharesave Scheme (227,316) 227,316 -
For consideration of £1.6m, shares issued
in respect of the Company's Sharesave Scheme - 280,090 0.2
At 30 September 2015 ordinary shares in issue
of 40.7p each 10,356 411,700,327 167.6
Shares to be issued under the scrip dividend alternative - 524,593 0.2
10,356 412,224,920 167.8
Shares held as treasury shares may be sold, re-issued for any of the Company's share schemes, or cancelled.
The weighted average market price of the Company's shares at the date of exercise of Sharesave Scheme options during the half year was 767p (2014 808p).
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
11. Share premium account
Unaudited
£m
1 April 2014 to September 2014
At 1 April 2014 4.9
Convertible bond 116.3
Adjustment for shares issued under the scrip dividend alternative (2.6)
At 30 September 2014
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