REG - Pennon Group PLC - Pennon Group Half Year Results 2017/18 <Origin Href="QuoteRef">PNN.L</Origin> - Part 5
29/11/2017 07:06
- Part 5: For the preceding part double click ID:nRSc7900Xd
6.0 (7.0)
129.8 102.4
Comparative information has been re-presented during the period to reflect the opening of the non-household water and wastewater retail market to competition. Comparative results for the non-household retail segment were previously recognised in the water segment.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
4. Segmental information (continued)
Intra-segment trading between different segments is under normal market based commercial terms and conditions. Intra-segment revenue of the other segment is reflected as a cost. Factors such as seasonal weather patterns can affect sales volumes, income and costs in both the water and waste management segments.
Geographic analysis of revenue based on location of customers
Unaudited
Half yearended 30 September2017 Half year ended 30 September 2016
£m £m
UK 692.5 663.5
Rest of European Union 6.4 3.9
China 20.4 14.6
Rest of World 4.6 3.5
723.9 685.5
The UK is the Group's country of domicile and the Group generates the majority of its revenue from external customers in the UK. The Group's non-current assets are all located in the UK.
5. Non-underlying items
Non-underlying items are those that in the Directors' view are required to be separately disclosed by virtue of their size, nature or incidence to enable a full understanding of the Group's financial performance in the period and business trends over time.
Unaudited
Half yearended 30 September2017 Half year ended 30 September 2016
£m £m
Revenue
Construction contract settlements (1a) 3.2 -
Operating costs
Restructuring costs (2) - (10.7)
Earnings before interest, tax, depreciation and amortisation 3.2 (10.7)
Remeasurement of fair value movement in derivatives (3) (7.8) (15.0)
Write-down of joint venture shareholder loans (1b) (19.2) -
Refinancing of joint venture arrangement (1c) 22.5 -
Deferred tax change in rate (4) - 20.1
Tax charge arising on non-underlying items 4.3 (2.7)
Net non-underlying credit/ (charge) 3.0 (8.3)
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
5. Non-underlying items (continued)
1 On reset of the contracts associated with the
Greater Manchester Waste Disposal Authority
(GMWDA) an overall net credit before tax of
£6.5m has been recognised as follows: (a) A
net amount of £3.2m has been recognised in
revenue following the settlement of all
outstanding claims relating to the
construction of assets. (b) On reset of the
contracts associated with GMWDA, ownership of
Viridor Laing Holdings Limited passed to the
GMWDA. On transfer £23.5m of Viridor's
shareholder loans were repaid, resulting in
the write down of the remaining financial
asset of £19.2m. (c) On reset of the
contracts associated with GMWDA repayment of
external bank debt in our joint venture,
Ineous Runcorn TPSCo Limited, was financed by
GMWDA. This change in cash flows resulted in
the recognition of income in this joint
venture, with an amount deferred relating to a
lower ongoing gate fee. The overall share of
profit after tax in the half year related to
the reset is £22.5 million, which has
contributed to an increase in investments in
joint ventures recognised on the balance sheet
to £23.0m (31 March 2017 £0.1m).
2 Last half year a one-off charge of £10.7m was
made relating to restructuring costs
associated with a Group-wide Shared Services
Review. The £10.7m charge consisted of a £9.5m
non-cash charge to other operating expenses
relating to a rationalisation of systems
leading to an asset de-recognition, and a
£1.1m charge to manpower costs and a £0.1m
charge to other operating costs in relation to
restructuring provisions. The charge was
considered non-underlying due to its size and
non-recurring nature.
3 In the period a charge of £7.8m was recognised
relating to non-cash derivative fair value
movements associated with derivatives that are
not designated as being party to an accounting
hedge relationship. These movements are non
-underlying due to the nature of the item
being market dependant and potentially can be
significant in value (size). In H1 2016/17 a
credit of £24.4m was recognised relating to
non-cash derivative fair value movements
associated with derivatives that were not
designated as being party to an accounting
hedge relationship. In addition, a charge of
£39.4m was recognised for the movement in the
fair value of another derivative arrangement
relating to a change in legislation,
- More to follow, for following part double click ID:nRSc7900XfRecent news on Pennon
See all newsREG - Pennon Group PLC - Total Voting Rights
AnnouncementREG - Pennon Group PLC - Director/PDMR Shareholding
AnnouncementREG - Pennon Group PLC - Confirmation of Chief Executive Officer Start Date
AnnouncementREG - Pennon Group PLC - Holding(s) in Company
AnnouncementREG - Pennon Group PLC - Total Voting Rights
Announcement