REG - SSE Plc - Half-year Report <Origin Href="QuoteRef">SSE.L</Origin> - Part 4
08/11/2017 07:06
- Part 4: For the preceding part double click ID:nRSH8580Vc
(157.7) Adjusted current tax charge (38.0) (57.1) (80.2)
1,388.2 Adjusted profit after tax (PAT) 371.6 418.7 468.6
(119.3) Hybrid coupon paid (57.4) (73.9) (12.5)
1,268.9 Adjusted profit after tax attributable to ordinary shareholders for earnings per share (EPS) 314.2 344.8 456.1
1,009.7 Number of shares for EPS 1,005.3 1,008.0 993.8
125.7 Adjusted Earnings per Share 31.2 34.2 45.9
1,874.0 Adjusted operating profit 586.2 637.2 701.9
203.1 Movement on operating and joint venture financing derivatives 23.5 162.7 (273.8)
(8.2) Exceptional items 7.9 59.1 (2.2)
(128.4) Share of joint ventures and associates interest and tax (68.2) (63.4) (82.8)
1,940.5 Reported operating profit 549.4 795.6 343.1
1,545.9 Adjusted PBT 409.6 475.8 548.8
255.7 Movement on operating and financing derivatives (0.5) 142.6 (284.5)
(8.2) Exceptional items 7.9 59.1 (2.2)
(3.1) Interest on net pension assets/liabilities 1.2 (6.1) (11.3)
(13.7) Share of joint ventures and associates tax (16.0) 3.6 (20.0)
1,776.6 Reported profit before tax 402.2 675.0 230.8
328.1 Adjusted net finance costs 176.6 161.4 153.1
(52.6) Movement on financing derivatives 24.0 20.2 11.3
(114.7) Share of joint ventures and associates interest (52.2) (67.1) (63.4)
3.1 Interest on net pension assets/liabilities (1.2) 6.1 11.3
163.9 Reported net finance costs 147.2 120.6 112.3
157.7 Adjusted current tax charge 38.0 57.1 80.2
(13.7) Share of joint ventures and associates tax (16.0) 3.6 (20.0)
19.8 Deferred tax including share of joint ventures and associates 21.9 28.5 28.9
(106.0) Tax on exceptional items and certain re-measurement 1.1 (23.4) (63.5)
57.8 Reported tax charge 45.0 65.8 25.6
(8,483.0) Adjusted net debt and hybrid capital (9,245.8) (8,995.4) (7,936.8)
2,209.7 Hybrid equity 2,209.7 2,209.7 3,371.1
(6,273.3) Adjusted net debt (7,036.1) (6,785.7) (4,565.7)
(105.2) Outstanding liquid funds (36.7) (88.5) (113.3)
(276.9) Finance leases (265.5) (290.6) (308.5)
(6,655.4) Unadjusted net debt (7,338.3) (7,164.8) (4,987.5)
1,726.2 Investment and Capital expenditure (adjusted) 779.5 782.4 757.3
4.2 Other expenditure - - (0.6)
112.8 Customer funded additions (IFRIC18) 31.7 48.1 34.0
633.5 Allowances and certificates 225.2 170.1 191.4
15.6 Additions subsequently disposed 29.9 15.6 -
(105.0) Joint ventures and associates additions (44.8) (42.5) (33.7)
2,387.3 Capital additions to Intangible Assets and Property, Plant and Equipment 1,021.5 973.7 948.4
779.5 Capital additions to Intangible Assets 250.8 262.5 245.1
1,607.8 Capital additions to Property, Plant and Equipment 770.7 711.2 703.3
2,387.3 Capital additions to Intangible Assets and Property, Plant and Equipment 1,021.5 973.7 948.4
(i) Restated to include the Clyde fair value uplift of £59.1m as an exceptional item. See note 4.2 (iii)
Consolidated Income Statement
for the period 1 April 2017 to 30 September 2017
2017 2016
(Restated)
Before exceptional items and certain re-measurements Exceptional items and certain re-measure-ments (note 6) Total Before exceptional items and certain re-measure-ments Exceptional items and certain re-measure-ments (note 6) (i) (Restated)Total (i)
Note £m £m £m £m £m £m
Revenue 5 12,184.1 - 12,184.1 11,262.8 - 11,262.8
Cost of sales (10,911.5) 21.4 (10,890.1) (10,049.0) 162.1 (9,886.9)
Gross profit 1,272.6 21.4 1,294.0 1,213.8 162.1 1,375.9
Operating costs (846.2) - (846.2) (763.7) - (763.7)
Other operating income (i) 34.8 7.9 42.7 24.5 59.1 83.6
Operating profit before joint ventures and associates 461.2 29.3 490.5 474.6 221.2 695.8
Joint ventures and associates:
Share of operating profit 125.0 - 125.0 162.6 - 162.6
Share of interest (52.2) - (52.2) (67.1) - (67.1)
Share of movement on derivatives - 2.1 2.1 - 0.7 0.7
Share of tax (15.6) (0.4) (16.0) (19.5) 23.1 3.6
Share of profit on joint ventures and associates 57.2 1.7 58.9 76.0 23.8 99.8
Operating profit 5 518.4 31.0 549.4 550.6 245.0 795.6
Finance income 7 44.6 - 44.6 60.5 - 60.5
Finance costs 7 (167.8) (24.0) (191.8) (160.9) (20.2) (181.1)
Profit before taxation 395.2 7.0 402.2 450.2 224.8 675.0
Taxation 8 (43.9) (1.1) (45.0) (89.2) 23.4 (65.8)
Profit for the period 351.3 5.9 357.2 361.0 248.2 609.2
Attributable to:
Ordinary shareholders of the parent 293.9 5.9 299.8 287.1 248.2 535.3
Other equity holders 57.4 - 57.4 73.9 - 73.9
Basic earnings per share (pence) 10 29.8 53.1
Diluted earnings per share (pence) 10 29.8 53.0
(i) Restated to include the Clyde fair value uplift of £59.1m as an exceptional item. See note 4.2 (iii)
The accompanying notes are an integral part of this interim statement.
Consolidated Income Statement
for the year ended 31 March 2017
Before exceptional items and certain Exceptional items and certain re-measure-ments Total
re-measure-ments (note 6)
Note £m £m £m
Revenue 5 29,037.9 - 29,037.9
Cost of sales (25,794.5) 232.6 (25,561.9)
Gross profit 3,243.4 232.6 3,476.0
Operating costs (1,707.3) (406.2) (2,113.5)
Other operating income 24.2 366.4 390.6
Operating profit before joint ventures and associates 1,560.3 192.8 1,753.1
Joint ventures and associates:
Share of operating profit 313.7 - 313.7
Share of interest (114.7) - (114.7)
Share of movement on derivatives - 2.1 2.1
Share of tax (32.8) 19.1 (13.7)
Share of profit on joint ventures and associates 166.2 21.2 187.4
Operating profit 5 1,726.5 214.0 1,940.5
Finance income 7 93.7 - 93.7
Finance costs 7 (310.2) 52.6 (257.6)
Profit before taxation 1,510.0 266.6 1,776.6
Taxation 8 (163.8) 106.0 (57.8)
Profit for the year 1,346.2 372.6 1,718.8
Attributable to:
Ordinary shareholders of the parent 1,226.9 372.6 1,599.5
Other equity holders 119.3 - 119.3
Basic earnings per share (pence) 10 158.4
Diluted earnings per share (pence) 10 158.2
Consolidated Statement of Other Comprehensive Income
for the period 1 April 2017 to 30 September 2017
Year ended 31 March 2017 Six months ended 30 September 2017 (Restated)Six months ended 30 September 2016(i)
£m £m £m
1,718.8 Profit for the period 357.2 609.2
Other comprehensive income:
Items that will be reclassified subsequently to profit or loss:
14.9 Net (losses)/gains on cash flow hedges (9.4) 21.3
10.6 Transferred to assets and liabilities on cash flow hedges 4.7 15.5
(2.8) Taxation on cash flow hedges 1.6 (4.0)
22.7 (3.1) 32.8
(6.0) Share of joint ventures and associates income/(loss) on joint ventures and associates, net of taxation 3.0 (13.0)
74.1 Exchange difference on translation of foreign operations 36.4 76.0
(22.5) Loss on net investment hedge, net of taxation (21.8) (36.9)
68.3 14.5 58.9
Items that will not be reclassified to profit or loss:
252.5 Actuarial gains/(losses) on retirement benefit schemes, net of taxation 64.1 (254.5)
(56.4) Share of joint ventures actuarial gains/(losses) on retirement benefit schemes, net of taxation 13.0 (86.8)
196.1 77.1 (341.3)
264.4 Other comprehensive income/(loss), net of taxation 91.6 (282.4)
1,983.2 Total comprehensive income for the period 448.8 326.8
Attributable to:
1,863.9 Ordinary shareholders of the parent 391.4 252.9
119.3 Other equity holders 57.4 73.9
1,983.2 448.8 326.8
(i) Restated to include the Clyde fair value uplift of £59.1m as an exceptional item. See note 4.2 (iii)
Consolidated Balance Sheet
as at 30 September 2017
At 31 March2017 At 30 September 2017 (Restated)At 30 September 2016(i)
£m Note £m £m
Assets
12,622.2 Property, plant and equipment 12,977.1 12,377.1
760.4 Goodwill and other intangible assets 725.9 951.8
985.8 Equity investments in joint ventures and associates (i) 983.9 896.9
788.4 Loans to joint ventures and associates 825.0 733.9
12.5 Other investments 11.5 16.5
322.3 Deferred tax assets 304.7 289.0
528.3 Derivative financial assets 16 515.7 760.0
525.4 Retirement benefit assets 17 514.1 59.3
16,545.3 Non-current assets 16,857.9 16,084.5
580.7 Other intangible assets 271.8 167.6
269.1 Inventories 284.0 220.5
3,754.4 Trade and other receivables 2,594.0 2,472.9
1,427.0 Cash and cash equivalents 1,199.6 257.9
1,269.5 Derivative financial assets 16 1,037.4 1,934.9
70.4 Current assets held for sale 11 130.2 406.5
7,371.1 Current assets 5,517.0 5,460.3
23,916.4 Total assets 22,374.9 21,544.8
Liabilities
142.4 Loans and other borrowings 13 134.5 338.8
4,923.5 Trade and other payables 3,375.4 3,343.4
294.8 Current tax liabilities 253.3 320.2
39.7 Provisions 30.3 71.3
1,153.2 Derivative financial liabilities 16 1,025.0 1,814.5
1.4 Liabilities held for sale 11 - 111.4
6,555.0 Current liabilities 4,818.5 5,999.6
7,940.0 Loans and other borrowings 13 8,403.4 7,083.9
788.9 Deferred tax liabilities 802.2 584.4
437.4 Trade and other payables 465.3 491.4
764.5 Provisions 765.9 699.7
454.9 Retirement benefit obligations 17 350.8 735.4
703.2 Derivative financial liabilities 16 693.3 987.4
11,088.9 Non-current liabilities 11,480.9 10,582.2
17,643.9 Total liabilities 16,299.4 16,581.8
6,272.5 Net assets 6,075.5 4,963.0
Equity:
507.8 Share capital 15 511.3 508.5
885.7 Share premium 875.0 876.6
26.5 Capital redemption reserve 34.8 22.0
14.5 Hedge reserve 14.4 17.6
33.8 Translation reserve 48.4 21.3
2,594.5 Retained earnings 2,381.9 1,307.3
4,062.8 Equity attributable to ordinary shareholders of the parent 3,865.8 2,753.3
2,209.7 Hybrid equity 14 2,209.7 2,209.7
6,272.5 Total equity attributable to equity holders of the parent 6,075.5 4,963.0
(i) Restated to include the Clyde fair value uplift of £59.1m as an exceptional item. See note 4.2 (iii)
Consolidated Statement of Changes in Equity
for the period 1 April 2017 to 30 September 2017
Statement of changes in equity Share capital Share premium account Capital redemptionreserve Hedge reserve Translationreserve Retained earnings Total attributable to ordinary shareholders Hybrid equity TotalEquity
£m £m £m £m £m £m £m £m £m
At 1 April 2017 507.8 885.7 26.5 14.5 33.8 2,594.5 4,062.8 2,209.7 6,272.5
Total comprehensive income for the period - - - (0.1) 14.6 376.9 391.4 57.4 448.8
Dividends to shareholders - - - - - (638.3) (638.3) - (638.3)
Scrip dividend related share issue 11.8 (11.8) - - - 324.5 324.5 - 324.5
Distributions to hybrid equity holders - - - - - - - (57.4) (57.4)
Issue of shares - 1.1 - - - - 1.1 - 1.1
Share repurchase (8.3) - 8.3 - - (270.5) (270.5) - (270.5)
Credit in respect of employee share awards - - - - - 7.4 7.4 - 7.4
Investment in own shares - - - - - (12.6) (12.6) - (12.6)
At 30 September 2017 511.3 875.0 34.8 14.4 48.4 2,381.9 3,865.8 2,209.7 6,075.5
Statement of changes in equity Share capital Share premium account Capital redemptionreserve Hedge reserve Translationreserve (Restated) Retained earnings (i) Total attributable to ordinary shareholders Hybrid equity Total Non-control-ling interest Total Equity
£m £m £m £m £m £m £m £m £m £m £m
At 1 April 2016 503.8 880.4 22.0 (2.2) (17.8) 1,598.6 2,984.8 2,209.7 5,194.5 22.5 5,217.0
Total comprehensive income for the period(i) - - - 19.8 39.1 194.0 252.9 73.9 326.8 - 326.8
Dividends to shareholders - - - - - (629.5) (629.5) - (629.5) - (629.5)
Scrip dividend related share issue 4.7 (4.7) - - - 142.6 142.6 - 142.6 - 142.6
Distributions to hybrid equity holders - - - - - - - (73.9) (73.9) - (73.9)
Issue of shares - 0.9 - - - - 0.9 - 0.9 - 0.9
Credit in respect of employee share awards - - - - - 6.6 6.6 - 6.6 - 6.6
Investment in own shares - - - - - (5.0) (5.0) - (5.0) - (5.0)
Non-controlling interest(ii) - - - - - - - - (22.5) (22.5)
At 30 September 2016 508.5 876.6 22.0 17.6 21.3 1,307.3 2,753.3 2,209.7 4,963.0 - 4,963.0
(i) Restated to include the Clyde fair value uplift of £59.1m as an exceptional item. See note 4.2 (iii)
(ii) This represents the non-controlling interest in Clyde Windfarm (Scotland) Limited which is now accounted as a joint
venture.
Consolidated Statement of Changes in Equity
for the year ended 31 March 2017
Statement of changes in equity Share capital Share premium account Capital redemptionreserve Hedge reserve Translation reserve Retained earnings Total attributable to ordinary shareholders Hybrid equity Total equity attributable to equity holders of the parent Non-controlling interest Total Equity
£m £m £m £m £m £m £m £m £m £m £m
At 1 April 2016 503.8 880.4 22.0 (2.2) (17.8) 1,598.6 2,984.8 2,209.7 5,194.5 22.5 5,217.0
Total comprehensive income for the year - - - 16.7 51.6 1,795.6 1,863.9 119.3 1,983.2 - 1,983.2
Dividends to shareholders - - - - - (906.6) (906.6) - (906.6) - (906.6)
Scrip dividend related share issue 7.9 (7.9) - - - 237.9 237.9 - 237.9 - 237.9
Distributions to hybrid equity holders - - - - - - - (119.3) (119.3) - (119.3)
Issue of shares 0.6 13.2 - - - - 13.8 - 13.8 - 13.8
Share repurchase (4.5) - 4.5 - - (131.5) (131.5) - (131.5) - (131.5)
Credit in respect of employee share awards - - - - - 13.1 13.1 - 13.1 - 13.1
Investment in own shares - - - - - (12.6) (12.6) - (12.6) - (12.6)
Non-controlling interest (i) - - - - - - - - - (22.5) (22.5)
At 31 March 2017 507.8 885.7 26.5 14.5 33.8 2,594.5 4,062.8 2,209.7 6,272.5 - 6,272.5
(i) This represents the non-controlling interest in Clyde Windfarm (Scotland) Limited which is now accounted as a joint
venture.
Consolidated Cash Flow Statement
for the period 1 April 2017 to 30 September 2017
Year Ended 31 March 2017(ii) Note Six months ended 30 September 2017 (Restated)Six months ended 30 September 2016(i), (ii)
£m £m £m
1,940.5 Operating profit 5 549.4 795.6
(187.4) Less share of profit of joint ventures and associates (58.9) (99.8)
1,753.1 Operating profit before jointly controlled entities and associates 490.5 695.8
(48.0) Pension service charges less contributions paid (18.1) (28.0)
(201.0) Movement on operating derivatives 16 (21.4) (162.1)
1,135.0 Depreciation, amortisation, write downs and impairments 363.2 370.3
16.2 Charge in respect of employee share awards (before tax) 7.4 6.6
(391.0) (Profit) on disposal of assets and businesses(i) (33.7) (79.0)
(17.6) Release of provisions - -
(18.0) Release of deferred income (9.6) (9.3)
2,228.7 Cash generated from operations before working capital movements 778.3 794.3
8.6 (Increase)/decrease in inventories (14.9) (5.1)
(541.9) Decrease in receivables 1,159.9 760.1
644.0 (Decrease)/increases in payables (1,177.9) (410.0)
(53.8) (Decrease) in provisions (14.3) (23.2)
2,285.6 Cash generated from operations 731.1 1,116.1
123.4 Dividends received from joint ventures and associates 42.3 20.8
(178.5) Interest paid (72.8) (66.4)
(98.5) Taxes paid (63.7) (63.3)
2,132.0 Net cash from operating activities 636.9 1,007.2
(1,621.1) Purchase of property, plant and equipment (804.0) (741.1)
(146.3) Purchase of other intangible assets (25.7) (92.3)
36.9 Deferred income received 6.4 0.8
739.3 Proceeds from disposals 11 120.7 76.2
(105.0) Loans to joint ventures and associates (86.7) (15.6)
(15.8) Purchase of businesses and subsidiaries - -
73.4 Loans and equity repaid by joint ventures 60.5 48.9
- Investment in joint ventures and associates - (0.7)
(0.2) Increase in other investments (0.2) -
(1,038.8) Net cash from investing activities (729.0) (723.8)
13.8 Proceeds from issue of share capital 1.1 0.9
(668.7) Dividends paid to the Company's equity holders (313.8) (486.9)
(119.3) Hybrid capital dividend payments 14 (57.4) (73.9)
(12.6) Employee share awards share purchase (12.6) (5.0)
1,842.5 New borrowings 553.0 1,089.5
(950.6) Repayment of borrowings (35.1) (910.3)
(131.5) Repurchase of own shares 15 (270.5) -
(26.4) Net cash from financing activities (135.3) (385.7)
1,066.8 Net (decrease)/increase in cash and cash equivalents (227.4) (102.3)
360.2 Cash and cash equivalents at the start of period 1,427.0 360.2
1,066.8 Net (decrease)/increase in cash and cash equivalents (227.4) (102.3)
1,427.0 Cash and cash equivalents at the end of period 1,199.6 257.9
(i) Restated to include the Clyde fair value uplift of £59.1m as an exceptional item. See note 4.2 (iii).
(ii) Re-presented to reclassify the purchase of carbon allowances and renewable obligation certificates from investing to
operating activities.
1. Condensed Financial Statements
SSE plc (the Company) is a company domiciled in Scotland. The condensed interim statements comprise those of the Company
and its subsidiaries (together referred to as the Group).
The financial information set out in these condensed interim statements does not constitute the Group's statutory accounts
for the periods ended 30 September 2017, 31 March 2017 or 30 September 2016 within the meaning of Section 435 of the
Companies Act 2006. Statutory accounts for the year ended 31 March 2017, which were prepared in accordance with
International Financial Reporting Standards as adopted by the EU (adopted IFRS), have been reported on by the Group's
auditors and delivered to the Registrar of Companies. The financial information set out in these interim statements has
been prepared in accordance with the Disclosure and Transparency Rules of the Financial Conduct Authority and IAS 34
Interim Financial Reporting as adopted by the EU.
The report of the auditor was (i) unqualified (ii) did not include reference to any matters to which the auditors drew
attention by way of emphasis without qualifying their report and (iii) did not contain statements under section 498 (2) or
(3) of the Companies Act 2006. The interim financial information is unaudited but has been formally reviewed by the
auditor and its report to the Company is set out on page 80.
These interim statements were authorised by the Board on 7 November 2017.
2. Basis of preparation
These condensed interim statements for the period to 30 September 2017 and the comparative information for the period to 30
September 2016 have been prepared applying the accounting policies and
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