We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Name | Symbol | Market | Type |
|---|---|---|---|
| Sth.e.wtr.11%db | LSE:52HO | London | Debenture |
| Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|---|---|
| 0.00 | 0.00% | 0 | - |
Hot Features
Premium
RNS Number : 5727J
South East Water Limited
05 December 2008
South East Water Limited
Condensed Group and Company financial statements
for the six months ended 30 September 2008
Registered number 02679874
Contents
Page
3 Chairman's statement
5 Statement of directors' responsibilities
6 Condensed Group income statement
6 Condensed Group statement of recognised income and expense
7 Condensed Group balance sheet
8 Condensed Group cash flow statement
9 Notes to the condensed Group financial statements
13 Condensed Company income statement
13 Condensed Company statement of total recognised gains and losses
14 Condensed Company balance sheet
15 Condensed Company cash flow statement
16 Notes to the condensed Company financial statements
Chairman's statement
Introduction
I have pleasure in presenting the Group's first Interim Report since the merger of the former South East Water ("SEW") and the former
Mid Kent Water ("MKW") in December 2007. Actions to merge the operations of the business continue apace with particular focus on the
Company's customer services activity and IT integration. Our new Customer Call Centre is now up and running at our Snodland Head Office and
system changes planned over the next 12 months will enable us to secure a platform from which we can deliver world class customer service.
The Board has seen a number of changes in the first half of the year with the resignation of David Ridley and appointment of Tom
Meinert, representing our shareholders. The Board has also been strengthened by the appointment of Steve George as our Customer Services
Director. I welcome them both to the Board and to the Company.
In addition to the execution of the merger plan, the business has been focussing on its Customer and Regulatory requirements. The Draft
Water Resources plan was published for consultation on 2 May 2008 and we are currently in discussions with our stakeholders, including the
Environment Agency, the Water Services Regulation Authority (Ofwat) and the Consumer Council for Water over aspects of the plan. We are also
preparing for the next 5 year price determination, and the Company's Draft Business Plan was submitted to Ofwat on 11 August 2008.
Results
The results published in this statement reflect the first six months of trading of the two merged entities. Although the two businesses
were not merged in the previous year with which we are comparing, the results have been amalgamated under common accounting policies which
allow for this comparison.
The consolidated operating profit for the first six months of the year was £39.0 million compared to £37.3 million for the same period
last year. The results for the period to 30 September 2008 include price increases allowed by Ofwat of 2.6% for MKW customers and 0.5% for
SEW customers together with an inflation increase of 4.28%. The prices also reflect a one off reduction of 2.4% (SEW) and 2.5% (MKW) as part
of the remedies mandated by the Competition Commission at the time of consent for the merger was granted
Operating costs for the first six months of the year are £49.3 million compared to £49.8 million in the period to 30 September 2007.
Profit after tax has fallen from £15.5 million to £11.6 million. Net interest payable has increased from £17.1 million to £21.7 million
reflecting an increase in interest rates, RPI indexation and additional borrowings in the first half of the year of £14 million.
Key Performance Indicators
On Customer Services we have made good progress. The Overall Performance Assessment ("OPA") score for SEW for the year to 31 March 2008
was 255 which is an increase of 15 points on the previous year. The OPA score for MKW for the same period was 277, an increase of 7 points.
Group operating profit as a percentage of revenue for the period to 30 September 2008 is 45.5% which represents an increase of 1.4% on
the same period in the previous year. For the full year to 31 March 2008 Group operating profit as a percentage of revenue was 44.2%.Net
cash generated from operations was £49.7 million in the six months to 30 September 2008, compared to £53.8m for the same period last year.
The Company maintained its credit rating as required under the conditions of its license and was in compliance with its financing
covenants at 30 September 2008.
Capital Expenditure
The Company continues to deliver the capital programme with capital expenditure for the first half of the year at £45.0m.
Looking ahead
The next regulatory price review is a key focus for us as we finalise a Business Plan that balances the needs of the business with our
Customers priorities.
I would like to thank all the staff in the merged business of South East Water who have contributed to the success of the merger to date
whilst continuing with their daily responsibilities. I look forward to working with the Board, the staff and our regulators in the next
phase of development of the newly merged organisation.
Gordon Maxwell
Chairman
5 December 2008
Statement of directors' responsibilities
The directors confirm that:
* the condensed Group financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as endorsed by
the European Union;
* the interim management report herein includes a fair review of the information required by the Disclosure and Transparency Rules 4.2.7
and 4.2.8; and, * the condensed Company financial statements have been prepared in accordance with the basis set out in note 15.
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 1985. They are also
responsible for safeguarding the assets of the Group and hence for taking reasonable steps for the prevention and detection of fraud and
other irregularities.
By order of the Board
P Butler
Managing Director
5 December 2008
Condensed Group income statement
for the six months ended 30 September 2008
Notes Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Revenue 3 85,873 84,601
Net operating costs - (49,336) (49,846)
non-exceptional
Net operating costs - (267) -
exceptional
Net operating costs 4 (49,603) (49,846)
Other income 5 2,777 2,517
Operating profit 39,047 37,272
Finance costs 6 (29,613) (25,660)
Finance income 7 7,890 8,596
Profit before tax 17,324 20,208
Taxation 8 (5,750) (4,700)
Profit for the period 14 11,574 15,508
Condensed Group statement of recognised income and expense
for the six months ended 30 September 2008
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Profit for the period 11,574 15,508
Actuarial (loss)/gain on (2,460) 3,910
defined benefit pension plans
Movement on deferred tax on
actuarial loss/(gain) on 689 (1,154)
defined benefit pension plans
Total (loss)/income not
recognised in the income (1,771) 2,756
statement
Total recognised income for 9,803 18,264
the period
Condensed Group balance sheet
as at 30 September 2008
Notes 30 September 31 30
2008 March September
2008 2007
(restated)
£000 £000
£000
Assets
Non-current assets
Property, plant and equipment
and 10 917,972 886,417 852,344
intangible assets
Non-current receivables 190,013 190,013 190,013
1,107,985 1,076,430 1,042,357
Current assets
Inventories 1,297 643 1,214
Trade and other receivables 11 30,611 34,501 33,119
Current tax receivables 138 167 100
Defined benefit pension asset 48 1,278 6,279
Cash and cash equivalents 15,068 16,757 32,177
47,162 53,346 72,889
Liabilities
Current liabilities
Financial liabilities
- Loans and borrowings (3,182) (1,734) (1,684)
Current tax payables - (204) -
Trade and other payables 12 (63,656) (67,131) (77,996)
(66,838) (69,069) (79,680)
Non-current liabilities
Financial liabilities
- Loans and borrowings (663,659) (648,001) (630,489)
- Derivative financial (56,050) (46,869) (39,739)
instruments
Deferred tax liabilities (125,658) (122,654) (138,384)
Defined benefit pension (33,950) (33,045) (23,544)
liability
Trade and other payables (44,752) (47,001) (42,389)
(924,069) (897,570) (874,545)
Net assets 164,240 163,137 161,021
Equity
Ordinary shares 13/14 10,092 10,092 10,092
Capital redemption reserve 14 4,000 4,000 4,000
Merger reserve 9,845 9,845 9,845
Retained earnings 14 140,303 139,200 137,084
Total equity 14 164,240 163,137 161,021
The notes on pages 9 to 12 are an integral part of these condensed Group financial statements.
Condensed Group cash flow statement
for the six months ended 30 September 2008
Notes Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Cash flows from operating
activities
Net cash generated from 49,733 53,808
operations
Interest received 8,108 8,289
Interest paid (14,830) (6,919)
Pension contributions paid (2,538) (2,047)
Tax paid (3,713) (5,932)
Net cash from operating 36,760 47,199
activities
Cash flows from investing
activities
Proceeds from sale of 1,322 276
property, plant and equipment
Purchase of property, plant
and equipment and intangible (45,227) (42,452)
assets
Fixed asset contributions 1,224 1,925
received
Net cash used in investing (42,681) (40,251)
activities
Cash flows from financing
activities
Net proceeds from issue of 13 - 5,000
ordinary share capital
Finance lease principal (1,061) (1,154)
payments
Proceeds from borrowings 13,993 8,500
Dividends paid to shareholder 9 (8,700) (17,220)
Net cash used in financing (4,232) (4,874)
activities
Net (decrease)/increase in
cash and cash equivalents (1,689) 2,074
Cash and cash equivalents at 1 16,757 30,103
April
Cash and cash equivalents at 15,068 32,177
30 September
Notes to the condensed Group financial statements
1. Basis of preparation
The condensed Group financial statements for the six months ended 30 September 2008 are set out on pages 6 to 12 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 2008,
which have been prepared in accordance with International Financial Reporting Standards endorsed by the European Union.
The condensed Group financial statements are presented in sterling.
These interim financial results are unaudited and do not comprise statutory accounts within the meaning of section 240 of the Companies
Act 1985. Statutory accounts for the year ended 31 March 2008 were approved by the Board of directors on 11 July 2008 and delivered to the
Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain any statement under section 237 of
the Companies Act 1985.
2. Accounting policies
The accounting policies adopted are consistent with those of the financial statements for the year ended 31 March 2008 as described in
those financial statements.
3. Revenue
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Metered water income 43,811 43,470
Unmetered water income 39,497 37,468
Other sales 2,565 3,663
85,873 84,601
All revenue is generated from activities within the United Kingdom.
4. Net operating costs
Employee benefits expense 9,130 7,915
Asset expense 10,473 13,514
Other operating expenses 30,000 28,417
49,603 49,846
Notes to the condensed Group financial statements (continued)
5. Other income
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Rental income 539 612
Sundry income 2,238 1,905
2,777 2,517
6. Finance costs
Effective interest on listed debt 8,133 8,000
Fair value movements on interest rate swap 9,181 7,771
Other finance costs 11,503 9,889
Pension fund finance charge 796 -
29,613 25,660
7. Finance income
Interest receivable from group undertakings 7,595 7,449
Interest receivable on bank balances and short term deposits
295 997
Pension fund finance credit - 150
7,890 8,596
8. Taxation
Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the
full financial year, which is 33% for the six months to 30 September 2008 (23% for the six months to 30 September 2007).
9. Dividends
Equity dividends paid and proposed during the period
8,700 21,441
Notes to the condensed Group financial statements (continued)
10. Property, plant and equipment and intangible assets
£000
Net book amount
At 1 April 2008 886,417
Additions 44,544
Disposals (2,371)
Depreciation, amortisation and impairment (10,618)
At 30 September 2008 917,972
(restated)
Net book amount
At 1 April 2007 825,284
Additions 40,850
Disposals (885)
Depreciation, amortisation and impairment (12,905)
At 30 September 2007 852,344
11. Trade and other receivables
30 September 31 30
2008 March September
2008 2007
(restated)
£000 £000
£000
Trade receivables 6,566 12,219 6,553
Amounts due from group
undertakings - 610 668
Prepayments and accrued income 22,047 18,156 22,594
Other receivables 1,998 3,516 3,304
30,611 34,501 33,119
12. Trade and other payables
Bank loans - - 6,800
Trade payables 12,337 13,756 12,448
Amounts due to group undertakings 9,041 9,721 10,900
Payments received in advance 10,399 10,383 10,624
Other taxes and social security 404 655 607
Other payables 2,794 2,343 2,900
Deferred income 2,577 2,577 1,191
Accruals 26,104 27,696 32,526
63,656 67,131 77,996
Notes to the condensed Group financial statements (continued)
13. Share capital
There were no changes in share capital during the six months to 30 September 2008. During the six months to 30 September 2007 South East
Water Limited issued 5,000,000 ordinary shares of £1 each to South East Water (Holdings) Limited for a consideration of £5 million.
14. Changes in shareholders' equity
Capital redemption
Share capital reserve Merger reserve Retained earnings
£000 £000 £000 £000
Total
£000
At 1 April 2007 5,092 4,000 9,845 140,261 159,198
Dividends paid - - - (21,441) (21,441)
Total recognised income and
expense for the year - - - 18,264 18,264
Proceeds from shares issued 5,000 - - - 5,000
At 30 September 2007 10,092 4,000 9,845 137,084 161,021
At 1 April 2008 10,092 4,000 9,845 139,200 163,137
Dividends paid - - - (8,700) (8,700)
Total recognised income and
expense for the year - - - 9,803 9,803
At 30 September 2008 10,092 4,000 9,845 140,303 164,240
Condensed Company income statement
for the six months ended 30 September 2008
Notes Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Turnover 16 85,873 84,499
Operating costs 17 (52,913) (52,969)
Other operating income 18 2,289 2,451
Operating profit 35,249 33,981
Interest receivable and 19 7,898 8,061
similar income
Interest payable and similar 20 (28,827) (25,670)
charges
Other finance (charge)/income (554) 456
Profit on ordinary activities 13,766 16,828
before taxation
Tax on profit on ordinary 21 (4,754) (5,376)
activities
Profit on ordinary activities 9,012 11,452
after taxation
Condensed Company statement of total recognised gains and losses
for the six months ended 30 September 2008
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Profit for the period 9,012 11,452
Actuarial (loss)/gain on
pension scheme for the period (3,479) 3,933
Movement on deferred tax 974 (1,180)
relating to pension deficit
Total recognised gains for the 6,507 14,205
year
Condensed Company balance sheet
as at 30 September 2008
Notes 30 September 31 30
2008 March September
2008 2007
(restated)
£000 £000
£000
Fixed assets
Tangible assets 23 741,157 713,746 686,338
Current assets
Stocks 1,297 643 1,214
Debtors: amounts falling due
after 24 195,613 195,613 195,613
more than one year
Debtors: amounts falling due
within one year 24 30,564 35,685 36,325
Cash at bank and in hand 3,501 6,582 10,894
230,975 238,523 244,046
Creditors: amounts falling due
within one year 25 (59,381) (62,405) (66,860)
Net current assets 171,594 176,118 177,186
Total assets less current 912,751 889,864 863,524
liabilities
Creditors: amounts falling due
after more than one year (719,709) (696,688) (670,228)
Provisions for liabilities and
charges (25,221) (24,942) (34,081)
Deferred income (6,898) (7,251) (5,645)
Net assets excluding pension 160,923 160,983 153,570
Defined benefit pension asset 35 1,101 5,105
Defined benefit pension (18,383) (17,316) (10,672)
liability
Net assets including pension
asset and liability
142,575 144,768 148,003
Capital and reserves
Called up share capital 26 10,092 10,092 10,092
Capital redemption reserve 4,000 4,000 4,000
Merger reserve 12,320 12,320 12,320
Profit and loss account 116,163 118,356 121,591
Equity shareholders' funds 27 142,575 144,768 148,003
The notes on pages 16 to 19 are an integral part of these condensed financial statements.
Condensed Company cash flow statement
for the six months ended 30 September 2008
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Net cash inflow from operating 47,195 51,761
activities
Returns on investments and
servicing of finance
Interest paid (16,012) (15,669)
Interest received 7,898 7,921
Net cash outflow from returns
on investments and servicing (8,114) (7,748)
of finance
UK corporation tax paid (3,713) (5,932)
Capital expenditure and
financial investment
Purchase of tangible fixed (45,227) (42,452)
assets
Fixed asset contributions 1,322 276
received
Net proceeds from disposal of 1,224 1,925
tangible assets
Net cash outflow from capital
expenditure and financial (42,681) (40,251)
investment
Equity dividends paid to (8,700) (17,220)
shareholders
Net cash outflow before
management of liquid resources (16,013) (19,390)
and financing
Financing
Proceeds from the issue of - 5,000
shares
Capital element of finance (1,061) (1,154)
leases
Increase loan to subsidiary - (2,000)
undertaking
Proceeds from loan drawdown 14,000 8,500
Debentures repaid (7) -
Net cash inflow from financing 12,932 10,346
Decrease in net cash (3,081) (9,044)
Reconciliation of increase in net cash to movement in net debt
Net cash at 1 April 6,582 19,938
Decrease in net cash (above) (3,081) (9,044)
Total cash 3,501 10,894
Opening borrowings (500,991) (464,005)
Net increase in borrowings (12,932) (5,346)
Other non-cash changes (12,915) (5,130)
Net debt at the end of the (523,337) (463,587)
period
Notes to the condensed Company financial statements
15. Basis of preparation
The condensed Company financial statements for the six months ended 30 September 2008 are set out on pages 13 to 19 and have been
prepared in accordance with the accounting policies disclosed in the Company financial statements for the year ended 31 March 2008 and
should be read in conjunction with those financial statements. The financial statements for the year ended 31 March 2008 have been prepared
under the historical cost convention in accordance with applicable UK accounting standards and under the Companies Act 1985, other than in
respect of grants and contributions as described in those financial statements.
These interim financial results are unaudited and do not comprise statutory accounts within the meaning of section 240 of the Companies
Act 1985. Statutory accounts for the year ended 31 March 2008 were approved by the Board of directors on 11 July 2008 and delivered to the
Registrar of Companies. The report of the auditors on those accounts was unqualified and did not contain any statement under section 237 of
the Companies Act 1985.
16. Turnover
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Metered water income 43,811 43,470
Unmetered water income 39,497 37,468
Other sales 2,565 3,561
85,873 84,499
All revenue is generated from activities within the United Kingdom.
17. Operating costs
Wages and salaries 9,344 8,310
Depreciation and non-exceptional profit on sale of fixed 15,835 16,240
assets
Other operating charges 27,734 28,419
52,913 52,969
18. Other operating income
Rental income 539 612
Sundry income 1,750 1,839
2,289 2,451
Notes to the condensed company financial information (continued)
19. Interest receivable and similar income
Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Interest receivable from group 7,819 7,599
undertakings
Interest receivable on bank
balances and short term 79 462
deposits
7,898 8,061
20. Interest payable and similar charges
On loans from group undertakings
- interest 8,143 8,010
- fair value movement of RPI indexation 9,181 7,771
Other finance charges 11,503 9,889
28,827 25,670
21. Taxation
Income tax expense is recognised based on management's best estimate of the weighted average annual income tax rate expected for the
full financial year, which is 34.5% for the six months to 30 September 2008 (31.9% for the six months to 30 September 2007).
The accounting for deferred tax includes an assessment of the impact of the 28% corporation tax rate that applies from 1 April 2008.
22. Dividends
Equity dividends paid and proposed during the period
8,700 21,441
Notes to the condensed company financial information (continued)
23. Tangible fixed assets
£000
Net book amount
At 1 April 2008 713,746
Additions 45,452
Disposals (851)
Grants and contributions (1,048)
Depreciation and impairment (16,142)
At 30 September 2008 741,157
(restated)
Net book amount
At 1 April 2007 664,010
Additions 40,769
Disposals (44)
Grants and contributions (1,925)
Depreciation and impairment (16,472)
At 30 September 2007 686,338
24. Debtors
30 September 31 30
2008 March September
2008 2007
(restated)
£000 £000
£000
Trade debtors 6,566 12,219 6,553
Amounts due from group 490 2,223 3,736
undertakings
Corporation tax 138 138 138
Other debtors 1,963 3,516 3,204
Prepayments and accrued income 21,407 17,589 22,694
Total debtors due within one 30,564 35,685 36,325
year
Amounts due from group
undertakings due after more
than one year 195,613 195,613 195,613
25. Creditors: amounts falling due within one year
Obligations under finance leases 3,182 1,734 1,684
Bank loans - - 6,800
Trade creditors 12,337 13,756 12,448
Amounts due to group undertakings 9,027 11,108 5,233
Payments received in advance 10,399 10,383 10,624
Other taxes and social security 404 655 607
Other creditors 408 2,343 1,216
Accruals 23,624 22,426 22,759
Proposed dividends - - 5,489
59,381 62,405 66,860
Notes to the condensed company financial information (continued)
26. Share capital
There were no changes in share capital during the six months to 30 September 2008. During the six months to 30 September 2007 South East
Water Limited issued 5,000,000 ordinary shares of £1 to South East Water (Holdings) Limited for a consideration of £5 million.
27. Reconciliation of movements in equity shareholders' funds
Notes Six months Six months ended
ended 30 September 2007
30 September 2008 (restated)
£000
£000
Shareholders' funds at start 144,768 150,239
of period
Profit for the period 9,012 11,452
Dividends paid and proposed 22 (8,700) (21,441)
Actuarial (loss)/gain on
pension scheme for the period (3,479) 3,933
Movement on deferred tax 974 (1,180)
relating to pension deficit
Share capital issued during 26 - 5,000
the period
Shareholders' funds at end of 142,575 148,003
period
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR ZZLFBVLBEFBE
1 Year Sth.e.wtr.11%db Chart |
1 Month Sth.e.wtr.11%db 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
