REG - United Utilities Grp - Half-year Report <Origin Href="QuoteRef">UU.L</Origin> - Part 2
23/11/2016 07:05
- Part 2: For the preceding part double click ID:nRSW8845Pa
benefits expense (note 3) (78.2) (72.6) (146.9)
Other operating costs (note 4) (222.3) (247.0) (485.8)
Other income 1.6 1.6 3.6
Depreciation and amortisation expense (178.0) (185.1) (363.7)
Infrastructure renewals expenditure (72.5) (75.6) (169.3)
Total operating expenses (549.4) (578.7) (1,162.1)
Operating profit 303.6 278.3 567.9
Investment income (note 5) 6.6 2.5 5.0
Finance expense (note 6) (174.6) (67.4) (224.4)
Investment income and finance expense (168.0) (64.9) (219.4)
Profit on disposal of business (note 7) 20.9 - -
Share of profits of joint ventures 1.9 2.2 5.0
Profit before tax 158.4 215.6 353.5
Current tax charge (6.5) (22.5) (44.3)
Deferred tax charge (6.4) (21.2) (24.2)
Deferred tax credit - change in tax rate 57.1 - 112.5
Tax (note 8) 44.2 (43.7) 44.0
Profit after tax 202.6 171.9 397.5
All of the results shown above relate to continuing operations.
Earnings per share (note 9)
Basic 29.7p 25.2p 58.3p
Diluted 29.7p 25.2p 58.2p
Dividend per ordinary share (note 10) 12.95p 12.81p 38.45p
Consolidated statement of comprehensive income
Six monthsended30 September2016 Six monthsended30 September2015 Year
ended31 March 2016
£m £m £m
Profit after tax 202.6 171.9 397.5
Other comprehensive income
Remeasurement (losses)/gains on defined benefit pensionschemes (note 11) (83.8) 33.4 160.1
Tax on items taken directly to equity (note 8) 18.0 (6.7) (26.5)
Foreign exchange adjustments 4.1 0.3 3.0
Total comprehensive income 140.9 198.9 534.1
Consolidated statement of financial position
30 September2016£m 30 September2015£m 31 March2016£m
ASSETS
Non-current assets
Property, plant and equipment 10,196.2 9,845.7 10,031.4
Intangible assets 179.8 157.5 162.4
Interests in joint ventures 70.2 29.8 35.1
Investments 9.1 8.5 8.7
Trade and other receivables 51.7 2.5 2.5
Retirement benefit surplus (note 11) 214.8 126.2 275.2
Derivative financial instruments 937.6 663.3 765.5
11,659.4 10,833.5 11,280.8
Current assets
Inventories 29.2 38.4 29.3
Trade and other receivables 337.2 379.9 367.4
Current tax asset 7.8 - -
Cash and short-term deposits 237.4 356.4 213.6
Derivative financial instruments 0.3 - 0.1
Assets classified as held for sale (note 7) - - 15.6
611.9 774.7 626.0
Total assets 12,271.3 11,608.2 11,906.8
LIABILITIES
Non-current liabilities
Trade and other payables (567.3) (503.0) (530.5)
Borrowings (note 12) (7,014.5) (5,997.7) (6,508.8)
Deferred tax liabilities (998.0) (1,151.7) (1,062.0)
Derivative financial instruments (328.3) (186.2) (255.8)
(8,908.1) (7,838.6) (8,357.1)
Current liabilities
Trade and other payables (365.2) (428.0) (341.7)
Borrowings (note 12) (302.4) (845.3) (469.2)
Current tax liabilities - (16.9) (12.3)
Provisions (18.6) (18.5) (15.1)
Derivative financial instruments (6.7) (3.4) (5.9)
(692.9) (1,312.1) (844.2)
Total liabilities (9,601.0) (9,150.7) (9,201.3)
Total net assets 2,670.3 2,457.5 2,705.5
EQUITY
Share capital 499.8 499.8 499.8
Share premium account 2.9 2.9 2.9
Treasury shares - (0.4) -
Cumulative exchange reserve (1.6) (8.4) (5.7)
Merger reserve 329.7 329.7 329.7
Retained earnings 1,839.5 1,633.9 1,878.8
Shareholders' equity 2,670.3 2,457.5 2,705.5
Consolidated statement of changes in equity
Six months ended 30 September 2016
Share capital£m Share premium account£m Cumulative exchange reserve£m Merger reserve£m Retained earnings£m Total£m
At 1 April 2016 499.8 2.9 (5.7) 329.7 1,878.8 2,705.5
Profit after tax - - - - 202.6 202.6
Other comprehensive income
Remeasurement losses on defined benefit pension schemes (note 11) - - - - (83.8) (83.8)
Tax on items taken directly to equity (note 8) - - - - 18.0 18.0
Foreign exchange adjustments - - 4.1 - - 4.1
Total comprehensive income - - 4.1 - 136.8 140.9
Dividends (note 10) - - - - (174.8) (174.8)
Equity-settled share-based payments - - - - 1.1 1.1
Exercise of share options - purchase of shares - - - - (2.4) (2.4)
At 30 September 2016 499.8 2.9 (1.6) 329.7 1,839.5 2,670.3
Six months ended 30 September 2015
Share capital£m Share premium account£m Treasuryshares£m Cumulative exchange reserve£m Merger reserve£m Retained earnings£m Total£m
At 1 April 2015 499.8 2.9 - (8.7) 329.7 1,610.7 2,434.4
Profit after tax - - - - - 171.9 171.9
Other comprehensive income
Remeasurement gains on defined benefit pension schemes (note 11) - - - - - 33.4 33.4
Tax on items taken directly to equity (note 8) - - - - - (6.7) (6.7)
Foreign exchange adjustments - - - 0.3 - - 0.3
Total comprehensive income - - - 0.3 - 198.6 198.9
Dividends (note 10) - - - - - (171.4) (171.4)
Purchase of shares - - (0.4) - - - (0.4)
Equity-settled share-based payments - - - - - 1.2 1.2
Exercise of share options - purchase of shares - - - - - (5.2) (5.2)
At 30 September 2015 499.8 2.9 (0.4) (8.4) 329.7 1,633.9 2,457.5
Year ended 31 March 2016
Share capital£m Share premium account£m Cumulative exchange reserve£m Merger reserve£m Retained earnings£m Total£m
At 1 April 2015 499.8 2.9 (8.7) 329.7 1,610.7 2,434.4
Profit after tax - - - - 397.5 397.5
Other comprehensive income
Remeasurement gains on defined benefit pension schemes (note 11) - - - - 160.1 160.1
Tax on items taken directly to equity (note 8) - - - - (26.5) (26.5)
Foreign exchange adjustments - - 3.0 - - 3.0
Total comprehensive income - - 3.0 - 531.1 534.1
Dividends (note 10) - - - - (258.7) (258.7)
Equity-settled share-based payments - - - - 2.3 2.3
Exercise of share options - purchase of shares - - - - (6.6) (6.6)
At 31 March 2016 499.8 2.9 (5.7) 329.7 1,878.8 2,705.5
Consolidated statement of cash flows
Six monthsended30 September2016 Six monthsended30 September2015 Year
ended31 March 2016
£m £m £m
Operating activities
Cash generated from operations (note 15) 517.4 461.6 905.5
Interest paid (77.5) (65.9) (168.7)
Interest received and similar income 1.7 1.0 1.9
Tax paid (21.9) (26.7) (53.1)
Net cash generated from operating activities 419.7 370.0 685.6
Investing activities
Purchase of property, plant and equipment (315.0) (299.4) (634.2)
Purchase of intangible assets (29.8) (27.1) (66.1)
Proceeds from sale of property, plant and equipment 0.8 0.5 1.4
Grants and contributions received 14.3 8.4 17.3
Loans to joint ventures (46.0) - -
Purchase of investment in joint ventures (10.0) - -
Proceeds from disposal of business (note 7) 4.1 - -
Dividends received from joint ventures 5.4 4.6 4.6
Proceeds from investments 0.4 - 0.2
Net cash used in investing activities (375.8) (313.0) (676.8)
Financing activities
Proceeds from borrowings 505.4 261.3 693.0
Repayment of borrowings (341.9) (34.1) (474.1)
Dividends paid to equity holders of the company (note 10) (174.8) (171.4) (258.7)
Purchase of shares (2.4) (5.6) (6.6)
Net cash (used in)/generated from financing activities (13.7) 50.2 (46.4)
Net increase/(decrease) in cash and cash equivalents 30.2 107.2 (37.6)
Cash and cash equivalents at beginning of the period 182.1 219.7 219.7
Cash and cash equivalents at end of the period 212.3 326.9 182.1
NOTES
1. Basis of preparation and accounting policies
The condensed consolidated financial statements for the six months ended 30
September 2016 have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and International
Accounting Standard 34 'Interim Financial Reporting' (IAS 34).
The accounting policies, presentation and methods of computation are
consistent with those applied in the audited financial statements of United
Utilities Group PLC for the year ended 31 March 2016 and are prepared in
accordance with International Financial Reporting Standards (IFRSs) as adopted
by the European Union (EU).
The condensed consolidated financial statements do not include all of the
information and disclosures required for full annual financial statements, do
not comprise statutory accounts within the meaning of section 434 of the
Companies Act 2006 and should be read in conjunction with the group's annual
report and financial statements for the year ended 31 March 2016.
The comparative figures for the year ended 31 March 2016 do not comprise the
group's statutory accounts for that financial year. Those accounts have been
reported upon by the group's auditor and delivered to the registrar of
companies. The report of the auditor was unqualified and did not include a
reference to any matters to which the auditor drew attention by way of
emphasis without qualifying their report and did not contain a statement under
section 498(2) or (3) of the Companies Act 2006.
Going concern
The directors have a reasonable expectation that the group has adequate
resources for a period of at least 12 months from the date of approval of the
condensed consolidated financial statements and have therefore assessed that
the going concern basis of accounting is appropriate in preparing the
condensed consolidated financial statements and that there are no material
uncertainties to disclose. This conclusion is based upon a review of the
resources available to the group, taking account of the group's financial
projections together with available cash and committed borrowing facilities as
well as consideration of the group's capital adequacy, consideration of the
primary legal duty of United Utilities Water Limited's economic regulator to
ensure that water and wastewater companies can finance their functions, and
any material uncertainties. In reaching this conclusion, the board has
considered the magnitude of potential impacts resulting from uncertain future
events or changes in conditions, the likelihood of their occurrence and the
likely effectiveness of mitigating actions that the directors would consider
undertaking.
2. Segmental reporting
The board of directors of United Utilities Group PLC (the board) is provided
with information on a single segment basis for the purposes of assessing
performance and allocating resources. The board reviews revenue, underlying
operating profit, operating profit, assets and liabilities, regulatory capital
expenditure and regulatory capital value gearing at a consolidated level. In
light of this, the group has a single segment for financial reporting purposes
and therefore no further detailed segmental information is provided in this
note.
3. Employee benefits expense
Included within employee benefits expense were £4.6 million (30 September
2015: £0.1 million, 31 March 2016: £0.9 million) of restructuring costs.
4. Other operating costs
Six monthsended30 September2016£m Re-presented*Six monthsended30 September2015£m Year
ended31 March2016£m
Hired and contracted services 51.0 53.2 107.5
Property rates 47.2 46.4 86.3
Materials 37.4 34.2 67.2
Power 33.2 30.4 65.3
Charge for bad and doubtful receivables 17.7 19.7 39.2
Regulatory fees 17.4 10.4 27.9
Legal and professional expenses 3.6 2.2 5.8
Third party wholesale charges 3.0 6.5 15.1
Operating leases payable 2.4 2.4 5.0
Loss on disposal of property, plant and equipment 1.9 2.6 5.4
Cost of properties disposed 0.1 2.2 10.5
Impairment of property, plant and equipment - - 11.4
Impairment of assets classified as held for sale - - 2.7
Amortisation of deferred grants and contributions (3.1) (3.3) (6.9)
Compensation from insurers (7.6) - (20.1)
Other expenses 18.1 40.1 63.5
222.3 247.0 485.8
*The comparatives have been re-presented to include additional categories for
amounts previously included within other expenses.
As a result of two significant flooding incidents caused by Storms Desmond and
Eva in December 2015, there were £8.5 million (31 March 2016: £19.5 million)
of expenses incurred, comprising £7.3 million (31 March 2016: £7.0 million) of
operating costs, £0.3 million (31 March 2016: £1.1 million) of infrastructure
renewals expenditure and a £0.9 million (31 March 2016: £11.4 million)
impairment of property, plant and equipment. Insurance compensation of £7.6
million (31 March 2016: £20.1 million) relating to the flooding incidents has
been recognised and the group expects there to be further recovery of the
flooding incident costs under its insurance cover in the year ending 31 March
2017, as further remedial work is undertaken.
In addition, there were £3.4 million (30 September 2015: £5.4 million, 31
March 2016: £11.1 million) of market reform restructuring costs incurred
preparing the business for open competition in the non-household retail market
and £nil (30 September 2015: £24.8 million, 31 March 2016: £24.8 million) of
costs relating to a large water quality incident, largely comprising customer
compensation payments included within other expenses.
5. Investment income
Six months ended30 September 2016 £m Six months ended30 September 2015 £m Year
ended
31 March 2016£m
Interest receivable 1.8 1.1 1.9
Net pension interest income (note 11) 4.8 1.4 3.1
6.6 2.5 5.0
6. Finance expense
Six monthsended30 September2016£m Six monthsended30 September2015£m Year
ended31 March2016£m
Interest payable 119.8 104.3 198.1
Net fair value losses/(gains) on debt and derivative instruments 54.8 (36.9) 26.3
174.6 67.4 224.4
Interest payable is stated net of £15.9 million (30 September 2015: £10.8
million, 31 March 2016: £21.3 million) borrowing costs capitalised in the cost
of qualifying assets within property, plant and equipment and intangible
assets during the period. Interest payable includes a £45.4 million (30
September 2015: £23.8 million, 31 March 2016: £37.9 million) non-cash,
inflation uplift charge in relation to the group's index-linked debt.
Net fair value losses/(gains) on debt and derivative instruments includes £8.5
million income (30 September 2015: £7.9 million, 31 March 2016: £16.5 million)
due to net interest on swaps and debt designated at fair value.
7. Disposal of non-household retail business
On 3 May 2016 the Competition and Markets Authority approved the formation of
a joint venture, Water Plus, between the group and Severn Trent PLC. On 1 June
2016 the group completed the disposal of its non-household water and
wastewater retail business, principally comprising billing and customer
service activities, to Water Plus. This resulted in a £20.9 million profit and
£4.1 million of cash proceeds on disposal of the business, together with a
£15.6 million disposal of assets that had been classified as held for sale.
The formation of the joint venture resulted in an increase in investments of
£35.6 million, and the subsequent recognition of a £0.9 million share of the
joint venture's losses.
8. Tax
During the period there was a current tax credit of £14.3 million (30
September 2015: £nil, 31 March 2016: £9.0 million) relating to agreed matters
in relation to prior years and a deferred tax credit of £57.1 million (30
September 2015: £nil, 31 March 2016: £112.5 million) reflecting the
substantive enactment of the reduction in the headline rate of corporation tax
from 18 per cent to 17 per cent from 1 April 2020. In addition, the profit on
disposal of business during the current period was non-taxable.
After adjusting for the above tax credits and the non-taxable item, the total
effective tax rate for the current and prior periods was in line with the
headline rate of corporation tax of 20 per cent. The split of the total tax
charge between current and deferred tax was due to ongoing timing differences
in relation to tax deductions on pension contributions, capital investment and
unrealised gains and losses on treasury derivatives.
The tax adjustments taken to equity primarily relate to remeasurement
movements on the group's defined benefit pension schemes.
9. Earnings per share
Basic and diluted earnings per share are calculated by dividing profit after
tax by the weighted average number of shares in issue during the period. The
weighted average number of shares in issue as at 30 September 2016 for the
purpose of the basic earnings per share was 681.9 million (30 September 2015:
681.9 million, 31 March 2016: 681.9 million) and for the diluted earnings per
share was 682.9 million (30 September 2015: 682.8 million, 31 March 2016:
683.0 million).
10. Dividends
Six monthsended30 September2016£m Six monthsended30 September2015£m Year
ended31 March2016£m
Dividends relating to the period comprise:
Interim dividend 88.3 87.3 87.3
Final dividend - - 174.8
88.3 87.3 262.1
Dividends deducted from shareholders' equity comprise:
Interim dividend - - 87.3
Final dividend 174.8 171.4 171.4
174.8 171.4 258.7
The interim dividends for the six months ended 30 September 2016 and 30
September 2015, and the final dividend for the year ended 31 March 2016, have
not been included as liabilities in the respective condensed consolidated
financial statements at 30 September 2016 and 30 September 2015, and the
consolidated financial statements at 31 March 2016, because they were approved
after the reporting date.
The interim dividend of 12.95 pence per ordinary share (2015: interim dividend
of 12.81 pence per ordinary share, final dividend of 25.64 pence per ordinary
share) is expected to be paid on 1 February 2017 to shareholders on the
register at the close of business on 16 December 2016. The ex-dividend date
for the interim dividend is 15 December 2017.
11. Retirement benefit surplus
The main financial assumptions used by the company's actuary to calculate the
defined benefit surplus of the United Utilities Pension Scheme (UUPS) and the
United Utilities PLC Group of the Electricity Supply Pension Scheme (ESPS)
were as follows:
Six monthsended30 September2016%p.a. Six monthsended30 September2015%p.a. Year
ended31 March2016 %p.a.
Discount rate 2.3 3.4 3.4
Pensionable salary growth and pension increases 3.3 3.0 3.2
Price inflation 3.3 3.0 3.2
The net pension expense before tax in the income statement in respect of the
defined benefit schemes is summarised as follows:
Six monthsended30 September2016£m Six monthsended30 September2015£m Year
ended31 March2016£m
Current service cost 10.2 11.4 22.3
Curtailments/settlements 1.7 0.3 1.1
Administrative expenses 1.6 1.3 2.7
Pension expense charged to operating profit 13.5 13.0 26.1
Net pension interest income (note 5) (4.8) (1.4) (3.1)
Net pension expense charged before tax 8.7 11.6 23.0
The reconciliation of the opening and closing net pension surplus included in
the statement of financial position is as follows:
Six monthsended30 September2016£m Six monthsended30 September2015£m Year
ended31 March2016£m
At the start of the period 275.2 79.2 79.2
Expense recognised in the income statement (8.7) (11.6) (23.0)
Contributions paid 32.1 25.2 58.9
Remeasurement (losses)/gains gross of tax (83.8) 33.4 160.1
At the end of the period 214.8 126.2 275.2
The closing surplus at each reporting date is analysed as follows:
30 September2016£m 30 September2015£m 31 March2016£m
Present value of defined benefit obligations (3,762.0) (2,834.7) (2,970.4)
Fair value of schemes' assets 3,976.8 2,960.9 3,245.6
Net retirement benefit surplus 214.8 126.2 275.2
In the six month period ended 30 September 2016 the discount rate decreased by
1.1 per cent, which includes a 0.5 per cent decrease in credit spreads. The
£83.8 million remeasurement loss has resulted from the impact of the decrease
in credit spreads during the period, partially offset by outperformance on the
schemes' assets. Further details on the approach to managing pension scheme
risk are set out in the audited financial statements of United Utilities Group
PLC for the year ended 31 March 2016.
12. Borrowings
New borrowings raised during the six month period ended 30 September 2016 were
as follows:
· On 9 June 2016 the group issued EUR 30.0 million fixed interest rate
notes due June 2031.
· On 13 June 2016 the group issued HKD 600.0 million fixed interest rate
notes due June 2031.
· On 15 June 2016 the group drew down the remaining £75.0 million against
its existing £250.0 million term index-linked loan facility signed in March
2015 with the European Investment Bank. This loan is structured on an
amortising basis with final repayment in June 2034.
· On 17 June 2016 the group drew down £75.0 million against its new £250.0
million term index-linked loan facility signed in April 2016 with the European
Investment Bank. This loan is structured on an amortising basis with final
repayment in June 2034.
· On 30 September 2016 the group issued £20.0 million index-linked notes
due October 2028 and £26.5 million index-linked notes due September 2036.
The notes were issued through private placement under the Euro medium-term
note programme.
13. Fair values of financial instruments
The fair values of financial instruments are shown in the table below.
30 September2016 30 September2015 31 March2016
Fair value£m Carrying value£m Fair value£m Carrying value£m Fair value£m Carrying value£m
Available for sale financial assets
Investments 9.1 9.1 8.5 8.5 8.7 8.7
Financial assets at fair value through profit or loss
Derivative financial assets - fair value hedge 694.9 694.9 509.7 509.7 583.8 583.8
Derivative financial assets - held for trading 243.0 243.0 153.6 153.6 181.8 181.8
Financial liabilities at fair value through profit or loss
Derivative financial liabilities - fair value hedge - - (2.3) (2.3) - -
Derivative financial liabilities - held for trading (335.0) (335.0) (187.3) (187.3) (261.7) (261.7)
Financial liabilities designated as fair value through profit or loss (379.6) (379.6) (312.2) (312.2) (338.0) (338.0)
Financial instruments for which fair value does not approximate carrying value
Financial liabilities in fair value hedge relationships (2,631.3) (2,609.9) (2,211.1) (2,253.2) (2,293.0) (2,373.0)
Other financial liabilities at amortised cost (5,567.4) (4,327.4) (4,775.5) (4,277.6) (4,830.1) (4,267.0)
(7,966.3) (6,704.9) (6,816.6) (6,360.8) (6,948.5) (6,465.4)
A decrease in underlying interest rates on index-linked debt during the period
is the principal reason for the increase in the difference between the fair
value and carrying value of the group's borrowings.
The group has calculated fair values using quoted prices where an active
market exists, which has resulted in 'level 1' fair value liability
measurements under the IFRS 13 'Fair value measurement' hierarchy of £2,162.4
million (30 September 2015: £1,927.8 million, 31 March 2016: £2,149.5 million)
for financial liabilities in fair value hedge relationships and £1,669.0
million (30 September 2015: £1,126.5 million, 31 March 2016: £1,309.9 million)
for other financial liabilities at amortised cost.
The £372.0 million increase (30 September 2015: £214.8 million reduction, 31
March 2016: £1,213.5 million reduction) in 'level 1' fair value liability
measurements is largely due to the increase in fair values at 30 September
2016. In the absence of an appropriate quoted price, the group has applied
discounted cash flow valuation models utilising market available data which
are classified as 'level 2' valuations. More information in relation to the
valuation techniques used by the group and the IFRS 13 hierarchy can be found
in the audited financial statements of United Utilities Group PLC for the year
ended 31 March 2016.
14. Net debt
Six monthsended30 September2016£m Re-presented*Six monthsended30 September2015£m Year
ended31 March2016£m
At start of the period 6,260.5 5,924.0 5,924.0
Net capital expenditure 329.7 317.6 681.6
Dividends (note 10) 174.8 171.4 258.7
Interest 75.8 64.9 166.8
Loans to joint ventures 46.0 - -
Inflation uplift on index-linked debt (note 6) 45.4 23.8 37.9
Fair value movements 34.9 (54.6) 42.4
Tax 21.9 26.7 53.1
Other 5.0 0.7 1.5
Cash generated from operations (note 15) (517.4) (461.6) (905.5)
At end of the period 6,476.6 6,012.9 6,260.5
*The comparatives have been re-presented to include additional categories for
amounts previously included within other.
Net debt comprises borrowings, net of cash and short-term deposits and
derivatives.
Fair value movements includes net fair value losses on debt and derivative
instruments of £54.8 million (30 September 2015: £36.9 million gain, 31 March
2016: £26.3 million loss) less net payments on swaps and debt designated at
fair value of £19.9 million (30 September 2015: £17.7 million net payment, 31
March 2016: £16.1 million net receipt).
15. Cash generated from operations
Six months ended30 September 2016£m Six months ended30 September 2015£m Year
ended
31 March 2016£m
Operating profit 303.6 278.3 567.9
Adjustments for:
Depreciation of property, plant and equipment 164.5 170.3 332.5
Amortisation of intangible assets 13.5 14.8 31.2
Impairment of property, plant and equipment - - 11.4
Impairment of assets classified as available for sale - - 2.7
Loss on disposal of property, plant and equipment 1.9 2.6 5.4
Amortisation of deferred grants and contributions (3.1) (3.3) (6.9)
Equity-settled share-based payments charge 1.1 1.2 2.3
Other non-cash movements (1.4) (2.4) (3.8)
Changes in working capital:
Decrease in inventories 0.1 2.1 11.2
Decrease/(increase) in trade and other receivables 43.6 (26.5) (14.1)
Increase/(decrease) in trade and other payables 8.7 30.7 (4.1)
Increase in provisions 3.5 6.0 2.6
Pension contributions paid less pension expense charged to operating profit (18.6) (12.2) (32.8)
Cash generated from operations 517.4 461.6 905.5
16. Commitments and contingent liabilities
At 30 September 2016 there were commitments for future capital expenditure
contracted but not provided for of £425.8 million (30 September 2015: £450.7
million, 31 March 2016: £447.3 million).
Details of the group's contingent liabilities were disclosed in the audited
financial statements of United Utilities Group PLC for the year ended 31 March
2016. There have been no significant developments relating to contingent
liabilities in the period ended 30 September 2016.
17. Related party transactions
The related party trading transactions with the group's joint ventures during
the period and amounts outstanding at the period end date were as follows:
Six months ended30 September2016£m Six months ended30 September2015£m Year
ended31 March2016£m
Sales of services 167.9 0.5 1.2
Purchases of goods and services 0.3 0.4 0.7
Amounts owed by related parties 111.4 2.8 2.9
Amounts owed to related parties 1.8 - -
Sales of services to related parties during the year mainly represent
non-household wholesale charges and were on the group's normal trading terms.
At 30 September 2016 amounts owed by joint ventures were £111.4 million,
comprising £49.1 million of trade balances settled in accordance with normal
credit terms and £62.3 million of unsecured loans maturing within 15 months.
Included within these amounts was £46.0 million owed by Water Plus in respect
of amounts drawn down on a £75.0 million revolving credit facility provided by
United Utilities Water Limited, which is guaranteed by United Utilities PLC.
No expense or allowance has been recognised for bad or doubtful receivables in
respect of the amounts owed by related parties.
In addition, the group has issued other guarantees of £5.2 million (30
September 2015: £2.7 million, 31 March 2016: £4.7 million) in support of its
joint ventures.
18. Events after the reporting period
There were no events arising after the reporting date that required
recognition or disclosure in the condensed consolidated financial statements
for the period ended 30 September 2016.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure and
Transparency Rules of the UK Financial Conduct Authority.
Responsibilities Statement
We confirm that to the best of our knowledge:
· the condensed set of financial statements has been prepared in
accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU;
· the interim management report includes a fair review of the information
required by:
· DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication
of important events that have occurred during the first six months of the
financial year and their impact on the condensed set of financial statements;
and a description of the principal risks and uncertainties for the remaining
six months of the year; and
· DTR 4.2.8R of the Disclosure and Transparency Rules, being related party
transactions that have taken place in the first six months of the current
financial year and that have materially affected the financial position or
performance of the entity during that period; and any changes in the related
party transactions described in the last annual report that could do so.
The directors of United Utilities Group PLC at the date of this announcement
are listed below:
Dr John McAdam
Steve Mogford
Stephen A Carter
Mark Clare
Alison Goligher
Russ Houlden
Brian May
Sara Weller
This responsibility statement was approved by the board and signed on its
behalf by:
……………………………………… ………………………………………
Steve Mogford Russ Houlden
22 November 2016 22 November 2016
Chief Executive Officer Chief Financial Officer
INDEPENDENT REVIEW REPORT TO UNITED UTILITIES GROUP PLC
Introduction
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly
- More to follow, for following part double click ID:nRSW8845PcRecent news on United Utilities
See all newsREG - Stock Exch Notice - Admission to Trading - 02/03/2026
AnnouncementREG - United Utilities Grp Untd Ut Water Fin UnitedUtilitiesWater - Publication of Final Terms
AnnouncementREG - United Utilities Grp - Director/PDMR Shareholding
AnnouncementREG - United Utilities Grp - Holding(s) in Company
AnnouncementREG - United Utilities Grp - Director/PDMR Shareholding
Announcement