REG - Pennon Group PLC - Pennon Group Half Year Results 2017/18 <Origin Href="QuoteRef">PNN.L</Origin> - Part 7
29/11/2017 07:06
- Part 7: For the preceding part double click ID:nRSc7900Xf
At 30 September 2016 8,443 413,806,914 168.4
ordinary shares of 40.7p
each
Unaudited
Number of shares
1 April 2017 to 30 September Treasury shares Ordinary shares £m
2017
At 1 April 2017 Ordinary 8,443 413,893,293 168.4
shares of 40.7p each
Shares issued under the - 5,223,089 2.1
Scrip Dividend Alternative
For consideration of £0.5m,
shares issued
to the Pennon Employee Share Trust - 46,205 0.1
For consideration of £2.7m,
shares issued
in respect of the Company's Sharesave Scheme - 449,717 0.2
At 30 September 2017 8,443 419,612,304 170.8
ordinary shares of 40.7p
each
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
year was 806p (H1 2016/17
887p).
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
11. Share premium account Unaudited
£m
1 April 2016 to 30 September
2016
At 1 April 2016 213.3
Adjustment for shares issued (0.3)
under the Scrip Dividend
Alternative
Shares issued under the 2.6
Sharesave Scheme
Shares issued under the 0.1
Executive Share Option
Scheme
Shares issued to the Pennon 1.2
Employee Share Trust
At 30 September 2016 216.9
1 April 2017 to 30 September
2017
At 1 April 2017 217.4
Adjustment for shares issued (2.1)
under the Scrip Dividend
Alternative
Shares issued under the 2.5
Sharesave Scheme
Shares issued to the Pennon 0.4
Employee Share Trust
At 30 September 2017 218.2
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
12. Perpetual capital securities
Unaudited
Half year ended 30 September 2017 Year ended31 March2017
£m £m
GBP 300m 2.875% perpetual 296.7 -
subordinated capital
securities
GBP 300m 6.75% perpetual - 294.8
subordinated capital
securities
296.7 294.8
On 8 March 2013 the Company
issued £300m perpetual
capital securities. Costs
directly associated with the
issue of £5.2m were set off
against the value of the
issuance. They had no fixed
redemption date but the
Company could at its sole
discretion, redeem all, but
not part, of these
securities at their
principal amount on 8 March
2018 or any subsequent
periodic return payment date
after this. In the event the
Company acquired 80% or more
of the securities it could
then redeem the remainder at
its sole discretion. On 22
September 2017 the Company
purchased £285.8m in
principal amount of the
capital securities and
settled accrued periodic
returns totalling £19.0m for
a total of £304.8m. On 25
September notice was given
to the remaining holders
that the Company would be
exercising its option to
redeem all of the remaining
£14.2m capital securities on
10 October 2017 at their
principal amount. The
outstanding liability at 30
September 2017 of £14.2m,
together with accrued
periodic returns of £0.6m is
classified as a current
liability on the balance
sheet. On 22 September 2017
the Company issued £300m
perpetual capital
securities. Costs directly
associated with the issue of
£3.3m were set off against
the value of the issuance.
They have no fixed
redemption date but the
Company can at its sole
discretion redeem all, but
not part, of these
securities at their
principal amount on 22 May
2020 or any subsequent
periodic return payment date
after this.
The Company has the option
to defer periodic returns on
any relevant payment date,
as long as a dividend on the
Ordinary Shares has not been
paid or declared in the
previous 12 months. Deferred
periodic returns shall be
satisfied only on redemption
or payment of dividend on
Ordinary Shares, all of
which only occur at the sole
discretion of the Company.
As the Company paid a
dividend on 4 April 2017 the
first periodic return of
£5.8m, scheduled 22 May
2018, is payable and
consequently has been
recognised as a liability at
30 September 2017.
Profits during the period
attributable to perpetual
capital security holders of
£21.5m reflect £19.6m of
distributions noted above on
the March 2013 perpetual
capital securities, £3.8m of
associated corporation tax
relief and £5.8m for
periodic returns due on 2017
perpetual capital securities
(note the newly issued
securities do not qualify
for corporation tax relief).
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
13. Cash flow from operating
activities
Reconciliation of profit for
the period to net cash
inflow from operations:
Unaudited
Half year ended 30 September 2017 Half year ended 30 September 2016
£m £m
Cash generated from
operations
Profit for the period 112.3 89.1
Adjustments for:
Share-based payments 1.8 1.8
Profit on disposal of property, plant and equipment - (2.0)
Depreciation charge 89.4 90.1
Amortisation of intangible assets 1.7 1.4
Non-underlying restructuring costs - 10.7
Non-underlying remeasurement of fair value movement in derivatives (note 5) 7.8 15.0
Non-underlying GMWDA contract reset (note 5) (6.5) -
Share of post-tax profit from joint ventures (5.3) (2.8)
Finance income (before non-underlying items) (13.5) (19.7)
Finance costs (before non-underlying items) 50.1 48.3
Taxation charge 17.5 13.3
Changes in working capital:
Increase in inventories (0.9) (2.8)
Increase in trade and other (42.9) (2.3)
receivables
Increase in service (16.9) (13.2)
concession arrangements
receivable
Increase in trade and other 23.8 27.3
payables
Increase in retirement 2.3 1.0
benefit obligations
Decrease in provisions (9.5) (11.9)
Cash generated from 211.2 243.3
operations
Unaudited
Half year ended 30 September 2017 Half year ended 30 September 2016
£m £m
Total interest paid
Interest paid in operating 33.2 35.1
activities
Interest paid in investing 7.8 6.1
activities
Total interest paid 41.0 41.2
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
14. Net borrowings
Unaudited
Half year ended 30 September 2017 Year ended31 March2017
£m £m
Cash and cash deposits 571.1 598.1
Borrowings - current
Bank and other loans - (74.9)
Other current borrowings (31.9) (41.1)
Finance lease obligations (28.0) (30.5)
Total current borrowings (59.9) (146.5)
Borrowings - non-current
Bank and other loans (1,548.4) (1,439.3)
Other non-current borrowings (307.4) (323.4)
Finance lease obligations (1,446.3) (1,353.8)
Total non-current borrowings (3,302.1) (3,116.5)
Total net borrowings (2,790.9) (2,664.9)
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
14. Net borrowings (continued)
The movements in net borrowings during the periods presented were as follows:
Unaudited
Net borrowings at 1 April 2016 Cash flows - other Foreign exchange adjustments Other non-cash movements Net borrowings at 30 September 2016
£m £m £m £m £m
Cash and cash deposits 632.2 25.3 - - 657.5
Bank and other loans due within one year - - - (24.9) (24.9)
Other current borrowings (39.0) 23.0 - (25.1) (41.1)
Finance leases due within one year (26.0) 3.2 - (3.4) (26.2)
Bank and other loans due after one year (1,502.5) - (7.2) 24.8 (1,484.9)
Other non-current borrowings (234.5) (130.0) - 25.1 (339.4)
Finance leases due after one year (1,314.6) 7.5 - - (1,307.1)
Total (2,484.4) (71.0) (7.2) (3.5) (2,566.1)
Unaudited
Net borrowings at 1 April 2017 Cash flows - other Foreign exchange adjustments Other non-cash movements Net borrowings at 30 September 2017
£m £m £m £m £m
Cash and cash deposits 598.1 (27.0) - - 571.1
Bank and other loans due within one year (74.9) 25.0 - 49.9 -
Other current borrowings (41.1) 25.1 - (15.9) (31.9)
Finance leases due within one year (30.5) 7.6 - (5.1) (28.0)
Bank and other loans due after one year (1,439.3) (56.3) (2.6) (50.2) (1,548.4)
Other non-current borrowings (323.4) - - 16.0 (307.4)
Finance leases due after one year (1,353.8) (92.5) - - (1,446.3)
Total (2,664.9) (118.1) (2.6) (5.3) (2,790.9)
For the purposes of the cash flow statement cash and cash equivalents comprise:
Unaudited
Half year ended 30 September 2017 Year ended31 March2017
£m £m
Cash and cash deposits as above 571.1 598.1
Less : deposits with a maturity of three months
or more (restricted funds) (227.5) (223.8)
343.6 374.3
Restricted funds are available for access, subject to being replaced by an equivalent valued security.
PENNON GROUP PLC
Notes to the condensed half year financial information (continued)
15. Fair value disclosure
for financial
instruments
Fair value of financial
instruments carried at
amortised cost
Financial assets and
liabilities which are
not carried at an
amount which
approximates to their
fair value are:
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