![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Comw.bk.a.38 | LSE:BC39 | London | Medium Term Loan |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
TIDMBC39
RNS Number : 8737R
Northern Powergrid (Yorkshire) plc
26 September 2017
NORTHERN POWERGRID (YORKSHIRE) plc
HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHSED 30 JUNE 2017
Cautionary Statement
This interim management report has been prepared solely to provide additional information to shareholders to assess the business and strategies of Northern Powergrid (Yorkshire) plc (the "Company") and should not be relied on by any other party or for any other purpose.
Business Model
The Company is part of the Northern Powergrid Holdings Company group of companies (the "Northern Powergrid Group") and its principal activity during the six months to 30 June 2017 was to act as an authorised distributor under the Electricity Act 1989. The Company distributes electricity to approximately 2.3 million customers connected to its electricity distribution network within its distribution services area.
Results for the six months ended 30 June 2017
The Company delivered a satisfactory performance for the six months ended 30 June 2017 although profit after tax reduced by GBP5.0 million when compared to the previous year mainly as a result of higher depreciation and operating costs.
Revenue
Revenue at GBP207.9 million was GBP1.3 million higher than for the six months ended 30 June 2016 mainly due to higher amortisation of customer contributions and recharge of staff costs to Northern Powergrid (Northeast) Limited, partly offset by lower units distributed.
Cash flow
Cash and cash equivalents as at 30 June 2017 were GBP221.0 million, representing an increase of GBP21.7 million when compared with the position at 31 December 2016.
The Company has access to GBP75 million under a five-year committed revolving credit facility provided by Lloyds Bank plc, Royal Bank of Scotland plc and Abbey National Treasury Services plc, which is due to expire on 30 April 2020.
In addition, the Company has access to short-term borrowing facilities provided by Yorkshire Electricity Group plc, a related party, and to a GBP19 million overdraft facility provided by Lloyds Bank plc.
Financial position
Profit before tax at GBP70.9 million was GBP7.2 million lower than the six months ended 30 June 2016 mainly as a result of higher depreciation and operating costs.
Dividends
No ordinary dividends were paid in the period resulting in GBP57.0 million being transferred to reserves.
Related party transactions
Details of the related party transactions entered into by the Company and changes therein are included in Note 7 to this half-yearly financial report.
Strategic review
During the period to 30 June 2017, the Company remained focused on delivering activity in support of the achievement of the Northern Powergrid Group's six core principles and underlying strategic objectives.
Core Principle Strategic Objective Activity undertaken to 30 June 2017 --------------- ----------------------------- ------------------------------------------------------------- Financial Effective stewardship strength of the Company's * Retained a grade A credit rating financial resources, investing in assets and focusing on * Further detail can be found in the 'results for the long-term opportunities, year ended 30 June 2017' above which contribute to the Company's future strength. --------------- ----------------------------- ------------------------------------------------------------- Customer Delivering reliability, service dependability, fair * Implemented initiatives from the Company's customer prices and exceptional experience improvement plan to improve the Broad service. Measure of Customer Satisfaction scores * Enhanced the content of written communications and provided a text and email service ahead of planned power cuts * Embedded a revised stakeholder improvement strategy * Invested in technology to support customer relationship management * Further developed services for vulnerable customers * Expanded education initiatives to promote safety and energy conservation --------------- ----------------------------- ------------------------------------------------------------- Operational Setting high standards excellence for the Company's * Invested significantly in network improvements operations, system including innovative technologies investment and maintenance. * Utilised the major incident management procedure at times of adverse weather to minimise disruption to supply * Continued to deploy the flood defences programme to increase network resilience --------------- ----------------------------- ------------------------------------------------------------- Employee Equipping employees commitment with the resources * Promoted safety in all areas of the business at all and support they times need to operate successfully and in a safe and rewarding * Completed the telematics installation programme work environment. * Supported employees by providing dedicated welfare services * Retained and recruited key talent * Continued to instil the values embedded in the Berkshire Hathaway Energy code of business conduct --------------- ----------------------------- ------------------------------------------------------------- Environmental Using natural resources respect wisely and protecting * Replaced fluid filled cables to reduce environmental the environment damage from oil leaks where it is impacted by the Company's operations. * Improved the distribution networks impact on the landscape by undergrounding overhead lines * Initiated several new innovation projects in the area of fault detection and domestic energy storage * Actively engaged with stakeholders on the Open Networks Project --------------- ----------------------------- ------------------------------------------------------------- Regulatory Adhering to a policy integrity of strict compliance * Operated without any material regulatory with applicable non-compliances laws, regulations, standards and policies. * Commenced preparation for the General Data Protection Regulation * Managed risks through regular meetings of the Governance and Risk Management Group --------------- ----------------------------- -------------------------------------------------------------
Principal risks and uncertainties
The Company operates a stable and regulated electricity distribution business, in respect of which the Company's allowed income is set for each regulatory year through the special conditions in the electricity distribution licence.
Information on the principal risks and uncertainties facing the Company and the internal control system are included in the Company's latest annual reports and accounts for the year to 31 December 2016, which is available at www.northernpowergrid.com.
It is anticpated that these risks will continue to be the principal risks facing the business for the remaining six months of 2017.
Going concern
In the Company's latest annual reports and accounts for the year to 31 December 2016 the directors set out a number of factors they took into account when they considered continuing to adopt the going concern basis in preparing those annual reports and accounts. The directors confirm that no events have occurred during the six months to 30 June 2017, which alter the view expressed in the annual reports and accounts to 31 December 2016.
Future strategy and objectives
The directors intend that the Company will continue to develop its business by operating with the goal of efficiently investing in its distribution network, improving the quality of supply and service provided to customers and delivering the regulatory business plan for ED1.
Responsibility Statement
The board of directors confirm that to the best of their knowledge:
(a) the condensed set of finanical statements, which has been prepared in accordance with IAS 34, gives a true and fair view of the assets, liabilities, financial position and profit of the Company as required by DTR 4.2.4R for the six months to 30 June 2017; and
(b) the interim management report contains a fair review of the information required by DTR 4.2.7R.
By order of the board
P A Jones
Director
21 September 2017
6 Months 6 Months ended ended 30 June 30 June 2017 2016 (unaudited) (unaudited) GBPm GBPm Revenue 207.9 206.6 Cost of sales (9.5) (8.0) ------------ ------------ Gross profit 198.4 198.6 Operating expenses (103.2) (97.3) ------------ ------------ Operating profit 95.2 101.3 Other gains 0.2 0.3 Net finance costs (24.5) (23.5) ------------ ------------ Profit before tax 70.9 78.1 Income tax expense (13.9) (16.1) ------------ ------------ Profit from ordinary activities after tax 57.0 62.0 ------------ ------------
CONDENSED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - SIX MONTHSED 30 JUNE 2017
There is no other comprehensive income for the Company for the six months to 30 June 2017 or the comparative six month period in 2016 other than the profits reported above.
30 June 31 December 2017 2016 (unaudited) GBPm GBPm ASSETS NON-CURRENT ASSETS Property, plant and equipment 3,104.9 3,054.6 ------------- ------------ 3,104.9 3,054.6 ------------- ------------ CURRENT ASSETS Inventories 0.3 0.3 Trade and other receivables 50.3 68.5 Cash and cash equivalents 221.0 199.3 ------------- ------------ 271.6 268.1 ------------- ------------ TOTAL ASSETS 3,376.5 3,322.7 ------------- ------------ EQUITY SHAREHOLDERS' EQUITY Share capital 290.0 290.0 Retained earnings 1,005.9 948.9 ------------- ------------ TOTAL EQUITY 1,295.9 1,238.9 ------------- ------------ LIABILITIES NON-CURRENT LIABILITIES Trade and other payables 768.3 762.5 Borrowings 1,023.1 1,022.8 Deferred tax 127.9 127.7 Provisions 1.1 1.2 ------------- ------------ 1,920.4 1,914.1 ------------- ------------ CURRENT LIABILITIES Trade and other payables 115.3 115.3 Borrowings 25.8 33.3 Tax payable 18.0 20.1 Provisions 1.1 1.0 ------------- ------------ 160.2 169.7 ------------- ------------ TOTAL LIABILITIES 2,080.6 2,083.8 ------------- ------------ TOTAL EQUITY AND LIABILITIES 3,376.5 3,322.7 ------------- ------------
The interim financial statements were approved by the board of directors and authorised for issue on 21 September 2017 and were signed on its behalf by:
P A Jones
Director
Share Retained Capital Earnings Total GBPm GBPm GBPm Balance at 1 January 2017 290.0 948.9 1,238.9 Profit for the period (unaudited) - 57.0 57.0 Balance at 30 June 2017 290.0 1,005.9 1,295.9 -------- --------- -------- Share Retained Capital Earnings Total GBPm GBPm GBPm Balance at 1 January 2016 290.0 829.5 1,119.5 Profit for the period (unaudited) - 62.0 62.0 Balance at 30 June 2016 290.0 891.5 1,181.5 -------- --------- -------- Share Retained Capital Earnings Total GBPm GBPm GBPm Balance at 1 January 2016 290.0 829.5 1,119.5 Profit for the year - 148.1 148.1 Equity dividends paid - (28.7) (28.7) Balance at 31 December 2016 290.0 948.9 1,238.9 -------- --------- -------- 6 Months 6 Months ended ended 30 June 30 June 2017 2016 (unaudited) (unaudited) GBPm GBPm Cash generated from operations 150.3 138.6 Net interest paid (32.8) (32.6) Tax paid (17.0) (9.6) ------------ ------------ Net cash from operating activities 100.5 96.4 ------------ ------------ Investing activities Proceeds from disposal of property, plant and equipment 0.2 0.3 Purchase of property, plant and equipment (103.0) (117.6) Receipt of customer contributions 24.0 28.3 ------------ ------------ Net cash used in investing activities (78.8) (89.0) ------------ ------------ Financing activities Movement in external loans - - Movement in loan from group undertaking - - Net cash generated by financing - - activities ------------ ------------ Net increase in cash and cash equivalents 21.7 7.4 Cash and cash equivalents at beginning of period 199.3 145.7 ------------ ------------ Cash and cash equivalents at end of period 221.0 153.1 ------------ ------------ 1. GENERAL INFORMATION
The information included within these condensed financial statements that refer to the year ended 31 December 2016 does not constitute statutory accounts as defined in section 434 of the Companies Act 2006. A copy of the statutory accounts for that year has been delivered to the Registrar of Companies. The auditor reported on those accounts and that report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.
2. ACCOUNTING POLICIES
Basis of preparation
The annual financial statements of the Company are prepared in accordance with International Financial Reporting Standards as adopted by the European Union. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with International Accounting Standard 34, 'Interim Financial Reporting', as adopted by the European Union.
Going concern
In the Company's latest annual reports and accounts for the year to 31 December 2016 the directors set out a number of factors they took into account when they considered continuing to adopt the going concern basis in preparing those annual reports and accounts. The directors confirm that no events have occurred during the six months to 30 June 2017, which alter the view expressed in the annual reports and accounts to 31 December 2016.
Changes in accounting policy
The Company's accounting policies and methods of computation are the same as the accounting policies which are described in the Company's financial statements for the year ended 31 December 2016. The Company has not adopted any new or revised accounting standards in the current year.
3. SEGMENTAL ANALYSIS
Revenue, profit before tax and net assets are attributable to electricity distribution. Revenue is all in respect of sales to United Kingdom customers.
Revenue represents charges made to customers for use of the distribution system, rental of meters, the recharge of costs incurred on behalf of related parties, amortisation of customer contributions and other goods sold and services provided, exclusive of value added tax.
4. INCOME TAX EXPENSE
Tax for the six month period ended 30 June 2017 is charged at 19.25% (six months ended 30 June 2016: 20.00%; year ended 31 December 2016: 20.00%), which represents the best estimate of the average annual effective tax rate expected for the full year, as applied to the pre-tax income of the six month period.
6 months 6 months ended 30 ended 30 June June 2017 2016 (unaudited) (unaudited) GBPm GBPm Current tax 13.7 15.6 Deferred tax 0.2 0.5 Total income tax expense 13.9 16.1 ------------ ------------
The Finance No2 Act 2015 reduced the rate of corporation tax to 19% effective from 1 April 2017 and to 18% effective from 1 April 2020. The Finance Act 2016, which was substantively enacted on 6 September, 2016 further reduced the rate of corporation tax effective from 1 April 2020 to 17%. Accordingly deferred tax assets and liabilities have been calculated at the tax rates which will be in force when the underlying temporary differences are expected to reverse.
5. NOTES TO THE CASH FLOW STATEMENT 6 Months 6 Months ended ended 30 June 30 June 2017 2016 (unaudited) (unaudited) GBPm GBPm Profit before income tax 70.9 78.1 Depreciation charges 50.2 46.6 Profit on disposal of fixed assets (0.2) (0.3) Amortisation of deferred revenue (13.1) (12.2) Movement in provisions 0.1 (0.1) Finance costs 24.5 23.5 132.4 135.6 Decrease in inventories - 0.1 Decrease/(increase) in trade and other receivables 0.3 (5.4) Increase in trade and other payables 17.6 8.3 ------------ ------------ Cash generated from operations 150.3 138.6 ------------ ------------ 6. FINANCIAL INSTRUMENTS
Except as detailed in the following table, the directors consider that the carrying value amounts of financial assets and financial liabilities are approximately equal to their fair values:
Carrying value Fair value 30 June 31 December 30 June 31 December 2017 (unaudited) 2016 2017 (unaudited) 2016 GBPm GBPm GBPm GBPm Financial liabilities Bond 2020 - 9.25% 208.1 217.3 248.7 266.4 Bond 2025 - 2.5% 148.8 150.5 158.5 160.4 Bond 2032 - 4.375% 153.8 150.5 190.6 187.2 Bond 2035 - 5.125% 199.0 203.9 271.2 276.7 EIB Loan - 4.133% 156.8 153.7 180.4 179.9 EIB Loan - 2.564% 131.8 130.1 141.6 139.5 EIB Loan - 2.073% 50.6 50.1 51.3 50.7 1,048.9 1,056.1 1,242.3 1,260.8 7. RELATED PARTY TRANSACTIONS
Transactions entered into with related parties and balances outstanding were as follows:
Amounts Purchases owed Interest Sales from from Borrowings from to related related related to related related parties parties parties parties parties GBPm GBPm GBPm GBPm GBPm Related party Six months ended 30 June 2017: Integrated Utility Services Limited 0.1 0.4 - - - Integrated Utility Services Limited (registered in Eire) - 0.1 - - - Northern Electric plc - 2.0 - - - Northern Powergrid Metering Limited 0.2 - - - - Northern Powergrid (Northeast) Limited 5.9 9.5 - - - Vehicle Lease and Service Limited - 2.0 0.2 - - Yorkshire Electricity Group plc - - - 221.0 0.3 ------------ ---------- --------- ------------ --------- 6.2 14.0 0.2 221.0 0.3 ============ ========== ========= ============ ========= Six months ended 30 June 2016: Integrated Utility Services Limited 0.1 0.2 - - - Integrated Utility Services Limited (registered in Eire) - 0.1 - - - Northern Electric plc - 2.5 - - - Northern Powergrid Metering Limited 0.2 - - - - Northern Powergrid (Northeast) Limited 4.7 8.2 - - - Vehicle Lease and Service Limited - 2.0 0.2 - - Yorkshire Electricity Group plc - - - 153.1 0.4 ------------ ---------- --------- ------------ --------- 5.0 13.0 0.2 153.1 0.4 ============ ========== ========= ============ ========= Purchases Amounts Interest Sales from owed Borrowings from to related related to related to related related parties parties parties parties parties GBPm GBPm GBPm GBPm GBPm Year ended 31 December 2016: Integrated Utility Services Limited 0.1 1.2 - - - Integrated Utility Services Limited (registered in Eire) - 0.3 - - - Northern Electric plc - 4.9 - - - Northern Powergrid Insurance Services Limited - 0.6 - - - Northern Powergrid Metering Limited 0.4 - - - - Northern Powergrid (Northeast) Limited 10.8 17.4 - - 0.1 Vehicle Lease and Service Limited 0.1 4.0 0.4 - - Yorkshire Electricity Group plc - - - 199.3 (0.6) ------------ ---------- ------------ ------------ --------- 11.4 28.4 0.4 199.3 (0.5) ============ ========== ============ ============ =========
Sales and purchases from related parties were made at commercial prices.
Interest on loans to/from Group companies is charged at a commercial rate.
The company news service from the London Stock Exchange
END
IR LLFSVAAIRFID
(END) Dow Jones Newswires
September 26, 2017 09:58 ET (13:58 GMT)
1 Year Comw.bk.a.38 Chart |
1 Month Comw.bk.a.38 Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions