REG - Pennon Group PLC - Pennon Group Half Year Results 2017/18 <Origin Href="QuoteRef">PNN.L</Origin> - Part 4
29/11/2017 07:06
- Part 4: For the preceding part double click ID:nRSc7900Xc
Pennon Group plc is a company
registered in the United Kingdom
(UK) under the Companies Act
2006. The address of the
registered office is given on
page 55. Pennon Group's business
is operated through two
principal subsidiaries. South
West Water Limited includes the
merged water companies of South
West Water and Bournemouth
Water, providing water and
wastewater services in Devon,
Cornwall and parts of Dorset and
Somerset and water only services
in parts of Dorset, Hampshire
and Wiltshire. Viridor Limited's
business is recycling, energy
recovery and waste management.
Pennon Group is also the
majority shareholder of Pennon
Water Services Limited, a
company providing water and
wastewater retail services to
non-household customer accounts
across Great Britain.
This condensed half year
financial information was
approved by the Board of
Directors on 28 November 2017.
The financial information for
the period ended 30 September
2017 does not constitute
statutory accounts within the
meaning of section 435 of the
Companies Act 2006. The
statutory accounts for 31 March
2017 were approved by the Board
of Directors on 23 May 2017 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 2017, 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 2017, with
the exception of changes in
estimates that are required in
determining the half year
provision of income taxes; and
judgements made in relation to
establishing the different
components of revenue in respect
of monies received into our
joint venture INEOS Runcorn
(TPS) Limited with consideration
given to the overall contracted
negotiations with the authority
and the timing of income
recognition (note 5).
PENNON GROUP PLC
Notes to condensed half year
financial information
(continued)
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 2017
and are in accordance with all
IFRSs and interpretations of the
IFRS Interpretations Committee
expected to be applicable for
the year ended 31 March 2018 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 2017 did not have a
material impact on the net
assets or results of the Group.
New standards or interpretations
due to be adopted from 1 April
2018, including IFRS 15 'Revenue
from contracts with customers'
and IFRS 9 'Financial
instruments' are not expected to
have a material impact on the
Group's net assets or results.
The tax charge for September
2017 and September 2016 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. The waste management business is the recycling, energy recovery and waste management services provided by Viridor. The non-household retail business is a new segment created this period reflecting the services provided by Pennon Water Services following the opening of the non-household water and wastewater retail market to competition on 1 April 2017.
Unaudited
Half yearended 30 September2017 Half year ended 30 September 2016
£m £m
Revenue
Water 292.2 284.9
Waste management 410.2 397.9
Non-household retail 83.5 68.3
Other 7.2 6.1
Less intra-segment trading (66.0) (71.7)
727.1 685.5
Segment result
Operating profit before depreciation,
amortisation and non-underlying items (EBITDA)
Water 187.1 181.9
Waste management 66.6 63.3
Non-household retail 0.5 1.1
Other (0.7) (0.9)
253.5 245.4
Operating profit before non-underlying items
Water 130.7 126.1
Waste management 32.4 27.7
Non-household retail 0.2 1.1
Other (0.9) (1.0)
162.4 153.9
Profit before tax and non-underlying items
Water 96.2 95.9
Waste management 30.6 23.1
Non-household retail (0.5) 1.1
Other 4.8 8.0
131.1 128.1
Profit before tax
Water 87.2 95.4
Waste management 37.1 12.9
Non-household retail (0.5) 1.1
Other
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