REG - Pennon Group PLC - Pennon Group Half Year Results 2017/18 <Origin Href="QuoteRef">PNN.L</Origin> - Part 6
29/11/2017 07:06
- Part 6: For the preceding part double click ID:nRSc7900Xe
which
impacted the derivative's future cash flows.
This derivative was terminated in February
2017.
4 Following the enactment of the Finance Act
2016 during H1 2016/17 the rate of corporation
tax reduced from 18% to 17% from April 2020,
resulting in a one-off credit of £20.1m being
recognised in the previous period.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
6. Net finance costs
Unaudited
Half year ended 30 September 2017 Half year ended 30 September 2016
Finance Finance Finance Finance
cost income Total cost income Total
£m £m £m £m £m £m
Cost of servicing debt
Bank borrowings and overdrafts (25.8) - (25.8) (24.2) - (24.2)
Interest element of finance lease
rentals (17.1) - (17.1) (16.2) - (16.2)
Other finance costs (1.5) - (1.5) (2.2) - (2.2)
Interest receivable - 1.1 1.1 - 1.8 1.8
Interest receivable on
shareholder loans to joint
ventures - 5.5 5.5 - 5.0 5.0
(44.4) 6.6 (37.8) (42.6) 6.8 (35.8)
Notional interest
Interest receivable on service
concession arrangements - 6.9 6.9 - 8.8 8.8
Retirement benefit obligations (0.9) - (0.9) (0.6) - (0.6)
Unwinding of discounts on
provisions (4.8) - (4.8) (5.1) - (5.1)
(5.7) 6.9 1.2 (5.7) 8.8 3.1
Net gains on derivative financial
instruments arising from the combination of non-derivative instruments - - - - 4.1 4.1
Net finance costs before
non-underlying items (50.1) 13.5 (36.6) (48.3) 19.7 (28.6)
Non-underlying items (note 5)
Write-down of joint venture shareholder loans (19.2) - (19.2) - - -
Fair value remeasurement of
non-designated derivative financial instruments, providing commercial hedges (7.8) - (7.8) (39.4) 24.4 (15.0)
(27.0) - (27.0) (39.4) 24.4 (15.0)
Net finance costs after
non-underlying items (77.1) 13.5 (63.6) (87.7) 44.1 (43.6)
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
7. Taxation
Beforenon-underlyingitemshalf year ended 30 September 2017 Non-underlying items (note 5)half year ended 30 September 2017 Totalhalf yearended 30 September 2017 Beforenon-underlying itemshalf year ended 30 September 2016 Non-underlying items (note 5)half year ended30 September 2016 Totalhalf yearended 30 September 2016
£m £m £m £m £m £m
Analysis of charge
Current tax charge 10.0 (3.0) 7.0 22.8 (1.3) 21.5
Deferred tax - other 11.8 (1.3) 10.5 7.9 (16.1) (8.2)
Tax charge for the period 21.8 (4.3) 17.5 30.7 (17.4) 13.3
UK corporation tax is
calculated at 19% (H1
2016/17 20%) of the
estimated assessable profit
for the year. The tax
charge for September 2017
and September 2016 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 non-underlying items was
17% (H1 2016/17 24%).
The effective tax rate for
the period including the
impact of non-underlying
items was 13% (H1 2016/17
13%).
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 in issue
is adjusted to include all
dilutive potential ordinary
shares.
The weighted average number
of shares and earnings used
in the calculations were:
Unaudited
Half year ended 30 September 2017 Half year ended 30 September 2016
Number of shares (millions)
For basic earnings per share 416.6 412.5
Effect of dilutive potential 1.5 2.1
ordinary shares from share
options
For diluted earnings per 418.1 414.6
share
Adjusted basic and diluted
earnings per ordinary share
Adjusted earnings per share
are presented to provide a
more useful comparison on
business trends and
performance. Non-underlying
items are adjusted for by
virtue of their size, nature
or incidence to enable a
full understanding of the
Group's financial
performance (as described in
note 5). Perpetual capital
returns are proportionately
adjusted to allow a more
useful comparison in the
period. Earnings per share
have been calculated as
follows:
Unaudited
Half year ended30 September 2017 Half year ended30 September 2016
Profit Earnings per share Profit Earnings per share
after tax Basic Diluted after tax Basic Diluted
£m p p £m p p
Statutory earnings 90.9 21.8 21.7 72.9 17.7 17.6
Deferred tax before
non-underlying items 11.8 2.8 2.8 7.9 1.9 1.9
Non-underlying items (net of (3.0) (0.7) (0.7) 8.3 2.0 1.9
tax)
Proportionate impact of
perpetual capital returns (note 12) 5.8 1.4 1.4 8.1 2.0 2.0
Earnings before non
-underlying
items and deferred tax 105.5 25.3 25.2 97.2 23.6 23.4
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
9. Dividends
Amounts recognised as
distributions to ordinary
equity holders in the
period:
Unaudited
Half year ended 30 September 2017 Half year ended 30 September 2016
£m £m
Interim dividend paid for
the year ended
31 March 2017 : 11.09p (2016 45.9 43.1
10.46p) per share
Final dividend paid for the
year ended
31 March 2017 : 24.87p (2016 103.6 95.4
23.12p) per share
149.5 138.5
In the six months to 30
September 2017 the 2016/17
interim and final dividends
were paid resulting in a
cash outflow of £107.8m and
the issuance of 5.2m
ordinary shares.
Unaudited
Proposed interim dividend Half year ended 30 September 2017 Half year ended 30 September 2016
£m £m
Proposed interim dividend
for the year ended
31 March 2018 : 11.97p (2017 50.2 45.9
11.09p) per share
The proposed interim
dividend has not been
included as a liability in
this condensed half year
financial information.
The proposed interim
dividend for 2018 will be
paid on 4 April 2018 to
shareholders on the register
on 26 January 2018.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
10. Share capital
Allotted, called up and Unaudited
fully paid
Number of shares
1 April 2016 to 30 September Treasury shares Ordinary shares £m
2016
At 1 April 2016 Ordinary 10,356 412,340,597 167.8
shares of 40.7p each
Shares issued under the - 771,563 0.3
Scrip Dividend Alternative
For consideration of £0.0m (1,913) 1,913 -
shares re-issued under the
Company's Executive Share Option Scheme
For consideration of £1.3m,
shares issued
to the Pennon Employee Share Trust - 143,479 0.1
For consideration of £0.1m,
shares issued under the
Company's Executive Share Option Scheme - 24,457 -
For consideration of £2.8m,
shares issued
in respect of the Company's Sharesave Scheme - 524,905 0.2
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