REG - Pennon Group PLC - Pennon Group Half Year Results 2015/16 <Origin Href="QuoteRef">PNN.L</Origin> - Part 6
27/11/2015 07:11
- Part 6: For the preceding part double click ID:nRSa1477He
16. Capital expenditure
Unaudited
Half year ended 30 September Year ended 31 March
2015 2015
£m £m
Property, plant and equipment
Additions 145.7 301.4
Net book value of disposals 7.5 2.0
Capital commitments
Contracted but not provided 446.5 350.3
17. Contingent liabilities
Unaudited
Half year ended 30 September Year ended 31 March
2015 2015
£m £m
Performance bonds 164.2 169.8
Other 4.0 4.0
168.2 173.8
Performance bonds are entered into in the normal course of business. No liability is expected to arise in respect of the bonds.
The Group is subject to litigation from time to time as a result of its activities. The Group establishes provisions in connection with litigation where it has a present legal or constructive obligation as a result of a past event and where it is more likely than not an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.
18. Acquisitions
On 15 April 2015 Pennon Group Plc acquired 100% of the issued share capital of Sembcorp Bournemouth Water Investments Limited (renamed 'Bournemouth Water Investments Limited') including its non-regulated subsidiaries from Sembcorp Holdings Limited for a cash consideration of £100.3m. Sembcorp Bournemouth Water Investments Limited is the holding company for Sembcorp Bournemouth Water Limited (renamed 'Bournemouth Water
Limited').
The acquisition was in line with the Group's strategy to increase shareholder returns from the anticipated future synergies and outperformance arising from the merger into South West Water.
The acquisition has been accounted for using the acquisition method. Goodwill of £42.3m has been capitalised attributable to the profitability of the acquired business and the anticipated future synergies and outperformance arising from the merger into South West Water.
On 1 June 2015 Viridor Waste Management Limited acquired Commercial Recycling Limited's waste collection division in Dorset and Somerset for an initial £3.5m. An additional payment of up to £2.0m could be made in the future depending upon certain performance related criteria. The acquisition has been accounted for using the acquisition method.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
18. Acquisitions (continued)
Provisional goodwill of £5.0m has been capitalised attributable to the profitability of the acquired business. Final fair values of assets and liabilities plus associated goodwill will be reported in the full year results for 2015/16.
No amount of goodwill related to these acquisitions is expected to be deductible for tax purposes.
The residual excesses over the net assets acquired in each business combination has been recognised as goodwill.
Fair values on acquisition Bournemouth Water Investments Limited
£m
Intangible assets 2.3
Property, plant and equipment 228.5
Inventories 0.1
Trade and other receivables 23.8
Cash and cash deposits 13.8
Retirement benefit surplus 1.9
Borrowings (160.2)
Trade and other payables (19.7)
Other liabilities (0.5)
Taxation - current (2.7)
Deferred tax liabilities (24.8)
Provisions (0.2)
Net assets acquired 62.3
Goodwill 42.3
Total consideration 104.6
Satisfied by:
Cash 100.3
Transfer of amounts due to Bournemouth Water
Investments Ltd 4.3
104.6
Net cash outflow arising on acquisition:
Cash consideration 100.3
Cash and cash deposits acquired (13.8)
86.5
Revenue for the period since acquisition to 30 September 2015 20.2
Profit before tax for the period since acquisition to
30 September 2015 3.5
Directly attributable costs included in other operating expenses 2.9
The fair value of acquired trade and other receivables on acquisition was £23.8m. This included gross contracted amounts receivable of £17.4m, of which cash flows of £1.0m were not expected to be collected.
- More to follow, for following part double click ID:nRSa1477HgRecent news on Pennon
See all newsREG - Water Services Auth - Proposed £24m South West Water enforcement package
AnnouncementREG - Pennon Group PLC - Update on Ofwat investigation
AnnouncementREG - Pennon Group PLC - Director/PDMR Shareholding
AnnouncementREG - Pennon Group PLC - Director/PDMR Shareholding
AnnouncementREG - Pennon Group PLC - Total Voting Rights
Announcement