TIDM53HO
RNS Number : 8386R
South East Water Limited
15 December 2016
South East Water Limited
Condensed Group financial statements
for the six months ended 30 September 2016
Registered number 02679874
Contents
Chairman's introduction
Statement of directors' responsibilities
Condensed Group income statement
Condensed Group statement of comprehensive income
Condensed Group statement of financial position
Condensed Group statement of changes in equity
Condensed Group statement of cash flows
Notes to the condensed Group financial statements
Chairman's introduction
I am pleased to present our interim report for the first half of
the 2016/17 financial year.
We are now 18 months into our five year business plan which
focusses on continuing to improve customer satisfaction and using
our scientific and engineering expertise to deliver a reliable
service of high quality drinking water. I am pleased to report we
continue to build on the performance of 2015-16 and have made
significant progress during the first six months of the year.
A report from the Consumer Council for Water published in
September 2016 complimented our innovative approach to customer
satisfaction which has seen us reduce written complaints for each
of the last five years. We are on track for further reductions this
year with complaints down 33 per cent in the first six months.
As part of the long term strategy to manage our water resources
more efficiently, we have invested GBP6 million in the installation
of a further 25,000 water meters in the first half of the year.
Water metering plays an important part in our water resource
management as it supports customers understanding of their water
use and helps to find leaks on private plumbing. Household meter
coverage in our area is now at 78 per cent with approximately
200,000 meters installed since the customer metering programme
began in 2011 and we remain on track to achieve 90 per cent by
2020.
We are investing in protecting water quality through the
installation of three microfiltration plants in Kent and Sussex. In
May 2016 we completed work in Waterworks Road, Eastbourne to reduce
turbidity and ensure the site is able to deliver 7.5 million litres
a day of high quality water into the Sussex network, while work
continues on two similar schemes in Kent.
The non-household retail market is scheduled to open to
competition from April 2017. Preparation for market opening has
involved a significant programme of work in this period as we
prepared our data, systems, organisational structure and
importantly people, to ensure we were ready for the key milestone
of "shadow" market operation which commenced in October. I would
like to thank everyone involved for the professional dedication
demonstrated and I am pleased to confirm we received the
certification that demonstrates our readiness for the new
market.
Customers must have trust in the quality of the information we
provide and we've worked hard to ensure that not only is our
reporting robust and transparent, but also to make it clearer and
more engaging for readers. We are therefore delighted that the
improvements we made have been recognised by our regulator as we
moved into the highest category in Ofwat's annual assessment on the
quality of water companies published information and assurance.
While we maintain a strong focus on delivering the improved
performance targets built into our business plan for the five year
period 2015 - 2020 (known as AMP6) work is already underway to
prepare our future business plans for AMP7 and beyond which we
intend to develop in partnership with our customers and those
stakeholders with an interest in the long-term development of water
resources and supply in the south east of England.
Our employees and partners are engaged in our plans and everyone
is focussed on our vision for the future: to be the water company
people want to be supplied by and want to work for.
Results and Key Performance Indicators
The results published in this statement summarise our
performance for the six months ended 30 September 2016. The
financial statements are prepared under International Financial
Reporting Standards (IFRS) and incorporate the performance of South
East Water Limited and its subsidiary, South East Water (Finance)
Limited.
Revenue for the period was GBP111.0 million compared with
GBP109.4 million for the same period in the previous year. The
increased revenue is largely due to increased prices averaging 4.2
per cent for the year, the impact of metering and the numbers of
new properties in the area. This is partially offset by an average
five per cent lower consumption due to the cooler and wetter than
average summer.
Net operating costs for the period to 30 September 2016 were
GBP72.9 million, which is in line with the same period in the
previous year. Operating profit was GBP42.0 million for the first
half of the 2016/17 financial year which compares with GBP40.4
million in the prior year. Operating profit as a percentage of
revenue has increased from 36.9 per cent in the first half of
2015/16 to 37.9 per cent in the current year.
Interest costs have increased by GBP1.5 million from GBP21.2
million to GBP22.7 million. This reflects the higher RPI being
applied to the index linked loans during the first half year and
the higher valuation of the interest rate swap liability.
Profit before tax is in line with the same period last year at
GBP21.8 million. This represents 19.6 per cent of revenue compared
with 19.9 per cent for the corresponding period last year.
Profit after tax has increased from GBP17.7 million to GBP25.4
million for the first six months of the year. This is due to a
deferred tax credit of GBP5.3 million (2015: charge of GBP2.4
million) being applied to the income statement in the period as a
result of the reduction in the forward rate of corporation tax,
moving from 20 per cent to 17 per cent, following the enactment of
the Finance Bill 2016.
Net cash generated from operations was GBP62.9 million for the
six months ended 30 September 2016 compared to GBP69.8 million in
the same period for the previous year. This decrease is
predominantly due to a higher charge for reactive maintenance being
made to the income statement and lower water income cash
collections in the period.
We continue to comply with the financial covenants set out in
our securitisation structure and continue to hold ratings from
Moody's and Standard & Poor's consistent with the requirements
of both our securitisation and our instrument of appointment.
Investing in customer satisfaction
We put customer priorities at the heart of everything we do. In
what is an innovative approach in the water industry, we conduct
customer satisfaction surveys every month, which score us on a
range of measures from taste of water through to frequency of
hosepipe restrictions. Our scores have improved since last year and
on average, year-to-date, 75 per cent of customers surveyed said
they are either satisfied or very satisfied with the service we
provide. This compares to an average score of 69 per cent in the
same period of 2015-16.
The industry wide service incentive mechanism (SIM) has seen us
continue to improve in the quantitative measures, such as response
times and complaints to CCWater. For the qualitative scores, our
aim is to achieve a "five out of five" customer experience. We have
seen improvements in our billing scores in the first two surveys of
the year but recognise we have more to do to increase our water
supply scores.
We aim to deliver a reliable, high quality, water service to our
customers and use engineering and technical excellence to achieve
this. We are on track with our planned capital investment programme
of GBP86.3 million for the year 2016-17. During the six months to
September 2016 we have invested GBP38.6 million on maintaining and
improving our network of pipes, treatment works, metering and other
key areas.
Along with schemes such as the microfiltration treatment schemes
in Kent and Sussex, we also invest in the pipe network underground
to deliver water to customers' taps. This investment includes the
completion, in May 2016, of a 6.5km strategic water main scheme in
Burham, Kent, which can deliver nine million litres of water a day
to customers in Maidstone and the surrounding area.
Our purpose built laboratory in Farnborough which opened in
October 2015 has tested more than 100,000 samples in the first six
months of the year. As well as providing a service to ensure the
water we supply meets high standards expected we also support more
than 200 other businesses and organisations, from other water
companies and local authorities through to individual private
supplies, with a water quality sampling service.
We want to keep interruptions to customer supplies to a minimum
and continue to invest in improving our network and training for
employees to be able to restore supplies as quickly as possible in
the event of an interruption. Our underlying performance for the
first six months of the year has been good and most customers who
have suffered an interruption have had their water restored in
under three hours, leading to an average interruption time across
our whole customer base of just over seven minutes per property for
the first six months of the year. Just over five minutes of this
figure comes from one significant burst water main in Barcombe,
East Sussex in August 2016, which saw customers between Barcombe
and Haywards Heath impacted for more than 12 hours.
We strive to ensure at all times we are learning from our
customer's experiences to keep improving the service we provide.
Following the burst in Barcombe we held local drop-in sessions and
gave customers an online survey option to feedback suggestions for
improvement, we are implementing many of the recommendations into
our emergency plans as a result.
To help customers having difficulty paying their water bills our
specially trained Customer Care Team talks with customers to
understand their circumstances and discuss our range of payment
options along with our special tariffs. We have more than 7,000
customers now signed up to our Social Tariff helping ensure their
bills are affordable.
Retail competition
The last six months has seen a significant amount of activity as
the business prepares for market opening for non-household
customers on 1 April 2017.
A key milestone was the entry into the "shadow" operation period
which began on 3 October 2016. This period is the opportunity we
have to test the systems and prepare for the live market and we
worked closely with Ofwat and Market Opening Services Limited
(MOSL), to ensure we passed the readiness test.
In preparation for market opening our new brand South East Water
Choice launched in May 2016. We see the market as a significant
opportunity for us to provide non-household customers with an
enhanced service delivering value added products and services and
the simplicity for customers of one bill in future for water and
wastewater services. I'm pleased to confirm we are on track with
our programme of activities to ensure we are ready to compete when
the market opens.
You can find out more about the new market itself at
open-water.org.uk.
Principal risks and uncertainties
The principle risks and uncertainties facing the business are
set out in the Strategic Report within the Group's Annual Report
for 2015/16, which can be found on the South East Water
website.
Going concern
The directors are satisfied that the Group has sufficient
resources to continue in operation for the foreseeable future, a
period of not less than 12 months from the date of this report.
Looking ahead
I would like to take the opportunity to thank Roger Darlington
who has chaired our Customer Challenge Group (CCG) and Customer
Panel for the last five years and who has decided now is the right
moment to stand down as the business begins to prepare for the next
price review. Roger is a committed customer advocate and he has
encouraged us to develop plans that are focussed on customers'
priorities.
Roger will be succeeded by Zoe McLeod who also has a strong
background in consumer advocacy. We look forward to working with
Zoe and our CCG. We have proactively chosen to continue our CCG as
an important part of our customer engagement in preparation for our
next customer centred business plan which is due to be published in
2019.
The preparation work for the next business plan is already
underway, and the team is looking to build on the innovative
customer engagement work we developed in our last plan which has
become an important part of our business today. We intend to
develop a plan that ensures everything we do reflects all the many
different people we serve and that we work with our customers to
develop a plan that has consumer support.
As part of the planning process, later this year we will publish
our drought plan for consultation. The drought plan details how we
expect to manage supply and demand during various levels of drought
and the steps we all must take to conserve supplies. This will be
followed by our water resources management plan, to be published in
2018. Reviewed every five years the plan's aim is to ensure we have
appropriately resilient water supplies for all our future customers
over the next 40 years.
For the immediate future, we continue to focus on delivering
excellent customer service and investing in our customers'
priorities to provide a safe, reliable, value for money service.
Preparation for the introduction of competition for our
non-household customers continues and the company is well placed to
accept the challenges of this development in the water sector.
On behalf of the Board, I would like to thank the employees and
partners of South East Water for the continued dedication to
delivering our vision and ensuring we deliver on our plans for now
and the future.
Nick Salmon
Chairman
15 December 2016
Statement of directors' responsibilities
The directors confirm that to the best of their knowledge:
-- the condensed Group financial statements have been prepared
in accordance with IAS 34 Interim Financial Reporting as endorsed
by the European Union; and
-- the condensed Group statements herein include a fair review
of the information required by the Disclosure and Transparency
Rules 4.2.7R.
The directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time the
financial position of the Group and enable them to ensure that the
Group financial statements comply with the Companies Act 2006. They
are responsible for safeguarding the assets of the Group and hence
for taking reasonable steps for the prevention and detection of
fraud and other irregularities.
The directors are also responsible for the maintenance and
integrity of the corporate and financial information included on
the Company's website. Legislation in the United Kingdom governing
the preparation and dissemination of financial statements may
differ from legislation in other jurisdictions.
Paul Butler
Managing Director
15 December 2016
Condensed Group income statement
for the six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
2016 2015
Notes GBP000 GBP000
Revenue 3 110,990 109,449
Group net operating costs 5 (72,890) (72,571)
Other income 3 3,939 3,528
Group operating profit 42,039 40,406
Finance costs 6 (22,714) (21,152)
Finance income 7 2,518 2,518
Profit before taxation 21,843 21,772
Taxation 8 3,596 (4,063)
-------------- --------------
Profit for the period 25,439 17,709
-------------- --------------
Earnings per share
Basic and diluted from continuing
operations 51.59p 35.91p
-------------- --------------
Profit for the current and prior period is generated entirely
from continuing operations.
Condensed Group statement of comprehensive income
for the six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Profit for the period 25,439 17,709
-------------- --------------
Items that will not be reclassified
subsequently to profit or loss:
Re-measurement of defined benefit
liability (10,664) 17,693
Deferred tax on defined benefit
pension schemes 1,920 (12,099)
Impact of deferred tax rate change
in respect of pension schemes (389) (1,119)
(9,133) 4,475
-------------- --------------
Total comprehensive income for the
period attributable to Owners of
the Company 16,306 22,184
-------------- --------------
Condensed Group statement of financial position
as at 30 September 2016
30 September 31 March 30 September
2016 2016 2015
Notes GBP000 GBP000 GBP000
Non-current assets
Intangible assets 10 10,777 11,046 10,303
Property, plant and equipment 11 1,430,220 1,412,184 1,395,279
Amount due from parent undertaking 190,013 190,013 190,013
Defined benefit pension surplus 7,372 9,003 5,555
1,638,382 1,622,246 1,601,150
-------------- -------------- --------------
Current assets
Inventories 239 185 244
Trade and other receivables 12 72,627 66,650 69,959
Cash and cash equivalents 13 16,376 16,947 23,204
89,242 83,782 93,407
-------------- -------------- --------------
Total Assets 1,727,624 1,706,028 1,694,557
-------------- -------------- --------------
Current liabilities
Trade and other payables 16 (89,380) (85,257) (92,220)
Deferred income (6,608) (6,803) (3,686)
Provisions (3,860) (3,834) (4,184)
(99,848) (95,894) (100,090)
Non-current liabilities
Loans and borrowings 14/15 (872,610) (869,880) (864,303)
Trade and other payables 14 (3,501) (2,589) (2,281)
Derivative financial instruments 14/15 (91,052) (87,226) (92,566)
Deferred tax liabilities (131,326) (140,566) (153,248)
Defined benefit pension liability (8,577) (1,466) (5,159)
Deferred income (67,234) (65,633) (66,638)
(1,174,300) (1,167,360) (1,184,195)
-------------- -------------- --------------
Total Liabilities (1,274,148) (1,263,254) (1,284,285)
-------------- -------------- --------------
Net assets 453,476 442,774 410,272
-------------- -------------- --------------
Equity
Ordinary shares 49,312 49,312 49,312
Revaluation reserve 264,063 264,134 261,702
Retained earnings 140,101 129,328 99,258
-------------- -------------- --------------
Total equity 453,476 442,774 410,272
-------------- -------------- --------------
The notes on below are an integral part of these condensed Group
financial statements.
Condensed Group statement of changes in equity
for the six months ended 30 September 2016
Issued Revaluation Retained
share capital reserve earnings Total equity
GBP000 GBP000 GBP000 GBP000
At 1 April 2016 49,312 264,134 129,328 442,774
--------------- -------------- ----------- ---------------
Profit for the period - - 25,439 25,439
Other comprehensive
income - - (9,133) (9,133)
Total comprehensive
income - - 16,306 16,306
Dividends (see note
9) - - (8,000) (8,000)
Amortise revaluation
reserve - (3,064) 3,064 -
Release revaluation
on disposals - (20) 20 -
Deferred tax on reserve
releases - 617 (617) -
Impact of deferred tax
rate change - 2,396 - 2,396
--------------- -------------- ----------- ---------------
At 30 September 2016 49,312 264,063 140,101 453,476
--------------- -------------- ----------- ---------------
for the six months ended 30 September 2015
Issued Revaluation Retained
share capital reserve earnings Total equity
GBP000 GBP000 GBP000 GBP000
At 1 April 2015 49,312 264,155 78,508 391,975
--------------- -------------- ---------- -------------
Profit for the period - - 17,709 17,709
Other comprehensive
income - - 4,475 4,475
--------------- -------------- ---------- -------------
Total comprehensive
income - - 22,184 22,184
Dividends (see note
9) - - (4,500) (4,500)
Amortise revaluation
reserve - (3,065) 3,065 -
Release revaluation
on disposals - (1) 1 -
Deferred tax on reserve
releases - 613 - 613
--------------- -------------- ---------- -------------
At 30 September 2015 49,312 261,702 99,258 410,272
--------------- -------------- ---------- -------------
Condensed Group statement of cash flows
for the six months ended 30 September 2016
Six months Six months
ended ended
30 September 30 September
2016 2015
Notes GBP000 GBP000
Operating activities
Net cash flow from operating activities 62,882 69,796
Interest received 2,543 2,518
Interest paid (17,354) (17,411)
Group tax relief paid (1,000) (1,250)
Net cash flow before investing and
financing activities 47,071 53,653
--------------- ---------------
Investing activities
Proceeds from sale of property, plant
and equipment 159 54
Purchase of property, plant and equipment (39,436) (54,211)
Purchase of intangible assets (1,297) (1,058)
Fixed asset contributions received 932 550
Net cash flow used in investing activities (39,642) (54,665)
--------------- ---------------
Financing activities
Repayments of borrowings - (3)
Dividends paid to shareholder 9 (8,000) (4,500)
Net cash flow used in financing activities (8,000) (4,503)
--------------- ---------------
Decrease in cash and cash equivalents (571) (5,515)
Cash and cash equivalents at 1 April 16,947 28,719
--------------- ---------------
Cash and cash equivalents at 30 September 13 16,376 23,204
--------------- ---------------
Notes to the condensed Group financial statements
for the six months ended 30 September 2016
1. Basis of preparation
The condensed Group financial statements for the six months
ended 30 September 2016 are set out below and have been prepared in
accordance with the Disclosure and Transparency Rules of the
Financial Services Authority and IAS 34 Interim Financial Reporting
as endorsed by the European Union. The statements should be read in
conjunction with the financial statements for the year ended 31
March 2016, which have been prepared in accordance with
International Financial Reporting Standards ("IFRS") endorsed by
the European Union.
The condensed Group financial statements are presented in
sterling.
These interim financial results are neither audited nor reviewed
by our auditor. The information for the year ended 31 March 2016
does not comprise statutory accounts within the meaning of section
434 of the Companies Act 2006. Statutory accounts for the year
ended 31 March 2016 were approved by the Board of directors on 15
July 2016 and delivered to the Registrar of Companies. The report
of the auditors on those accounts was not qualified, did not
include any reference to any matters to which the auditors drew
attention by way of emphasis without qualifying the report and did
not contain any statement under section 498(2) or (3) of the
Companies Act 2006.
2. Accounting policies
Changes in accounting policies
The accounting policies adopted are consistent with those of the
financial statements for the year ended 31 March 2016 as described
in those financial statements.
3. Total income
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Revenue
Unmetered water income 24,537 29,956
Metered water income 83,417 76,583
Other sales 3,036 2,910
-------------- --------------
Total revenue 110,990 109,449
-------------- --------------
Other income
Rental income 585 521
Sundry income 3,354 3,007
-------------- --------------
Total other income 3,939 3,528
-------------- --------------
Total income 114,929 112,977
-------------- --------------
All revenue is from customers within the United Kingdom.
4. Segmental analysis
The Group's revenue mainly arises from the supply of water and
related activities. The activities of the Group, for management
purposes, fall into two operating areas being regulated activities
and non-regulated activities.
The Group analyses results by segment to operating profits only,
so no segmental statement of financial position or statement of
cash flows are presented.
Period to 30 September 2016 Regulated Other
activities activities Total
GBP000 GBP000 GBP000
Total revenue 111,006 3,923 114,929
------------ ------------ ---------
Operating profit 40,170 1,869 42,039
------------ ------------
Finance income 2,518
Finance costs (22,714)
---------
Profit before taxation 21,843
Taxation 3,596
---------
Profit for the period 25,439
---------
Period to 30 September 2015
Total revenue 105,944 3,505 109,449
------------ ------------ ---------
Operating profit 38,243 2,163 40,406
------------ ------------
Finance income 2,518
Finance costs (21,152)
---------
Profit before taxation 21,772
Taxation (4,063)
---------
Profit for the period 17,709
---------
5. Net operating costs
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Employee benefits expense 13,550 12,907
Asset expense 22,616 21,873
Other operating expenses 36,724 37,791
-------------- --------------
72,890 72,571
-------------- --------------
6. Finance costs
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Effective interest on listed debt 10,950 12,167
Fair value movements on interest
rate swap 3,825 3,755
Indexation on listed debt 1,729 1,187
Interest on index linked loans 5,657 4,294
Indexation on index linked loans 727 (572)
Other finance costs 1,208 1,547
Pension fund finance (credit)/charge (168) 98
-------------- --------------
23,928 22,476
Less: interest capitalised (1,214) (1,324)
-------------- --------------
22,714 21,152
-------------- --------------
7. Finance income
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Interest receivable from group undertakings 2,462 2,448
Interest receivable on bank balances and
short term deposits 56 70
2,518 2,518
-------------- --------------
8. Taxation
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Current taxation charge 1,717 1,616
Deferred taxation (credit)/charge (5,313) 2,447
(3,596) 4,063
-------------- --------------
The current tax charge is recognised based on management's
estimate of the weighted average annual corporation tax rate
expected for the full financial year.
9. Dividends
Six months Six months
ended ended
30 September 30 September
2016 2015
GBP000 GBP000
Equity dividends paid during the period
of 16.2p per share (2015: 9.1p) 8,000 4,500
-------------- --------------
10. Intangible assets
GBP000
Net book amount
At 1 April 2016 11,046
Additions for the period 1,297
Amortisation for the period (1,566)
--------
At 30 September 2016 10,777
--------
Net book amount
At 1 April 2015 10,651
Additions for the year 3,368
Amortisation for the year (2,960)
Impairment for the year (13)
--------
At 31 March 2016 11,046
--------
Net book amount
At 1 April 2015 10,651
Additions for the period 1,058
Amortisation for the period (1,406)
--------
At 30 September 2015 10,303
--------
11. Property, plant and equipment
GBP000
Net book amount
At 1 April 2016 1,412,184
Additions for the period 39,245
Disposals for the period (63)
Depreciation for the period (21,120)
Impairment for the period (26)
At 30 September 2016 1,430,220
----------
Net book amount
At 1 April 2015 1,369,190
Additions for the year 85,842
Disposals for the year (72)
Depreciation for the year (42,040)
Impairment for the year (736)
----------
At 31 March 2016 1,412,184
----------
Net book amount
At 1 April 2015 1,369,190
Additions for the period 46,610
Disposals for the period (23)
Depreciation for the period (20,498)
----------
At 30 September 2015 1,395,279
----------
12. Trade and other receivables
30 September 31 March 30 September
2016 2016 2015
GBP000 GBP000 GBP000
Financial asset receivables
Trade receivables 31,033 29,968 29,223
Accrued income 35,288 30,645 33,593
Amounts due from Group undertakings 37 148 -
66,358 60,761 62,816
------------- --------- -------------
Non-financial asset receivables
Prepayments 4,438 2,894 4,766
Other receivables 1,831 2,995 2,377
------------- --------- -------------
6,269 5,889 7,143
------------- --------- -------------
72,627 66,650 69,959
------------- --------- -------------
13. Cash and cash equivalents
30 September 31 March 30 September
2016 2016 2015
GBP000 GBP000 GBP000
Cash at bank and in hand 9,376 5,547 904
Short term bank deposits 7,000 11,400 22,300
------------- --------- -------------
16,376 16,947 23,204
------------- --------- -------------
14. Financial liabilities
30 September 31 March 30 September
2016 2016 2015
GBP000 GBP000 GBP000
Non-current liabilities
Irredeemable debenture stock 991 991 997
Listed bonds 520,563 518,645 515,641
Index linked loans 351,056 350,244 347,665
------------- --------- -------------
Loans and borrowings 872,610 869,880 864,303
Derivative financial instruments
- Inflation swap 91,052 87,226 92,566
Trade and other payables 3,501 2,589 2,281
------------- --------- -------------
967,163 959,695 959,150
------------- --------- -------------
15. Financial Instruments
Fair values of financial assets and financial liabilities
Fair value is the amount at which a financial instrument could
be exchanged in an arm's length transaction between informed and
willing parties. In the opinion of the directors, the fair values
of the financial assets and liabilities of the Group (apart from
the specific items shown in the fair value table below) are not
materially different from the book values.
Book Fair Book Fair
Value Value Book Fair Value Value
30 September 30 September Value Value 30 September 30 September
2016 2016 31 March 31 March 2015 2015
GBP000 GBP000 2016 2016 GBP000 GBP000
GBP000 GBP000
Loans and receivables
Amounts due from parent
undertaking 190,013 193,321 190,013 139,385 190,013 134,041
-------------- -------------- ----------- ----------- -------------- --------------
Financial liabilities
at amortised cost
Irredeemable debentures 991 921 991 766 997 670
Listed bonds 520,563 633,743 518,645 601,959 515,641 631,496
Index linked loans 351,056 489,057 350,244 393,500 347,665 335,391
-------------- -------------- -----------
872,610 1,123,721 869,880 996,225 864,303 967,557
-------------- -------------- ----------- ----------- -------------- --------------
The following table details the financial instruments that are
carried in the Group's books at the fair value at 30 September
2016.
Book and Book and Book and
Fair Value Fair Value Fair Value
30 September 31 March 30 September
2016 2016 2015
GBP000 GBP000 GBP000
At fair value through the income
statement
Interest rate swap 91,052 87,226 92,566
-------------- ------------ --------------
The book value of the interest rate swap has been adjusted to
reflect its fair value.
Fair value hierarchy
The Group held the following financial instruments measured at
fair value:
Total Level 1 Level 2 Level 3
GBP000 GBP000 GBP000 GBP000
Financial liabilities at fair
value through the income statement
30 September 2016
Interest rate swap (91,052) - (91,052) -
----------- -------- ----------- --------
31 March 2016
Interest rate swap (87,226) - (87,226) -
----------- -------- ----------- --------
30 September 2015
Interest rate swap (92,566) - (92,566) -
----------- -------- ----------- --------
During the reporting period ended 30 September 2016, there were
no transfers between Level 1 and Level 2 fair value measurements
and no transfers into and out of Level 3 fair value
measurements.
The Group uses the following hierarchy for determining and
disclosing the fair value of financial instruments by valuation
technique:
-- Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
-- Level 2: other techniques for which all inputs with a
significant effect on the recorded fair value are observable,
either directly or indirectly; and
-- Level 3: techniques which use inputs which have a significant
effect on the recorded fair value that are not based on observable
market data.
16. Trade and other payables
30 September 31 March 30 September
2016 2016 2015
GBP000 GBP000 GBP000
Financial liability payables
Trade payables 11,724 10,803 15,009
Amounts due to group undertakings 10,839 10,120 9,509
Other payables 675 770 468
Accruals 29,682 30,582 31,087
------------- --------- -------------
52,920 52,275 56,073
------------- --------- -------------
Non-financial liability
payables
Payments received in advance 35,480 32,009 35,201
Other taxes and social security 980 973 946
------------- --------- -------------
36,460 32,982 36,147
------------- --------- -------------
89,380 85,257 92,220
------------- --------- -------------
17. Subsequent events
There have been no post balance sheet events that require
disclosure.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR BGBDDCSBBGLS
(END) Dow Jones Newswires
December 15, 2016 02:00 ET (07:00 GMT)
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