Bristol Wtr.8t% Regulatory News (BWRA)

13 Jul 2006 07:00

Bristol Water PLC13 July 2006 BRISTOL WATER plc Bristol Water plc is a subsidiary of Bristol Water Group plc, which is itself asubsidiary of Sociedad General de Aguas de Barcelona S.A. (Agbar) 13 July 2006 Year ended 31 March 2006 2005 Restated £m £m Turnover 81.9 70.6 Operating profit- normal activities 24.9 18.4- exceptional restructuring costs - (1.3)-------------------------------------------------------------------------------- 24.9 17.1-------------------------------------------------------------------------------- Profit before tax 18.4 10.7Profit after tax 11.6 9.1Regulatory Capital Value (RCV) 234.5 229.1Net debt (excluding 8.75% irredeemable cumulativepreference shares) as percentage of RCV 71% 61%Earnings per ordinary share 193.0p 151.9pDividend per ordinary share in respect of the year 139.85p 135.15p Results are reported under UK GAAP.Results for the previous year have been restated to reflect full adoption ofFRS17, FRS20, FRS21, FRS25 and FRS26 Alan ParsonsAndy NieldBristol Water plcTel 0117 953 6407 Or contact: Bristol Water Corporate Affairs on 0117 953 6470 during office hours or 07831 453924 at any time. CHAIRMAN'S STATEMENT Introduction On 22 April 2006 a recommended cash offer was made by Sociedad General de Aguasde Barcelona S.A. (Agbar) for Bristol Water Group plc (BWG), the then ultimateparent company. Agbar has now acquired more than 90% of the shares of BWG. BWGhas subsequently been delisted. Agbar is a substantial and well-respected company operating in a range ofinternational markets providing water services to approximately 23 millionpeople worldwide. No significant changes to the operational or financialstructure of Bristol Water plc are anticipated as a result of the transactionand services to customers will be unaffected. The company has concluded the first year of the new regulatory period coveringthe five years 2005-10 and is making good progress towards delivery of therequired outputs and efficiency targets for the five-year period specified bythe Water Services Regulatory Authority (Ofwat) in its determination of the newprice limits. Financial performance in 2004/05 was adversely affected by a combination ofexpenses being incurred that were not accommodated within allowed price limits,together with a provision for restructuring costs. The price limits for the newfive-year period provide for most of those additional costs together with thefinancing of a substantial capital investment programme. The allowed price limitincrease of 17.3% for the year, together with efficiency gains from therestructuring programme, has improved profitability. During the year we have progressed initiatives to improve further the operatingefficiency of the company. We have implemented a number of redundancies andoutsourced our laboratory services. We are continuing to seek further potentialsavings where consistent with maintaining service standards and appropriatelevels of risk. A major focus during the period has been the planning and initiation of projectsfor the five-year period and the establishment of a framework partnership todeliver them. Good progress is being made with the major capital expenditureproject to improve the security of supply for customers in the northern part ofour area. Capital expenditure for the year was lower than Ofwat's assumptionsdue to the phasing of expenditure. We anticipate a significant increase incapital expenditure in the next two years and in real terms, over the five-yearperiod, anticipate spending in line with Ofwat's assumptions. Levels of service to customers remain extremely high, as reflected in theOfwat's assessment of levels of service and customer surveys. Over the last year at a national level, there has been considerable publicityabout drought conditions, the potential restriction on water supplies andleakage levels. Approximately 40% of the company's water resources come fromimpounding reservoirs. These are now approximately 90% full and no restrictions on water use are expected in the coming year. We are continuing to encourage customers to use water wisely. The company has met its Ofwat-approved leakage target in each year since targets were introduced. Accounting standards As previously indicated the company does not currently intend to adoptInternational Financial Reporting Standards and therefore will continue toreport under UKGAAP. There have been a number of changes to UKGAAP in the period. The fivesignificant changes for the company are the adoption of FRS17 (RetirementBenefit Obligations), FRS20 (Share based payment), FRS21 (Events after thebalance sheet date), FRS25 (Financial Instruments: Disclosure and Presentation)and FRS26 (Financial Instruments: Recognition and Measurement). The newstandards have been adopted for these results and comparative figures for theprevious year have been restated accordingly. Financial performance The company has performed well with operating profit increasing by 46% to£24.9m. This includes the effect of the average 17.3% increase in main watersupply tariffs, reflecting the 13.8% K factor for 2005/06 set by Ofwat in theprice determination for the five years 2005-10. Gross capital expenditure amounted to £22.6m. Net debt, excluding the 8.75% irredeemable cumulative preference shares (whichunder FRS25 are now required to be classified as a long-term creditor),increased to £166.2m compared to £140.8m at 31 March 2005. The increase in netdebt reflects the £21.5m advanced to BWG and the additional contribution to thepension scheme. Additional long-term index linked debt of £57m was successfully raised throughthe Artesian programmes arranged by The Royal Bank of Scotland. £21.5m was usedto provide an intercompany loan to BWG and £7m to make a special contribution tothe defined benefit pension scheme. The remainder will be used to financecapital expenditure and debt maturities over the next two years. This'pre-funding' is reflected in the relatively high cash at bank and on deposit of£40.5m at 31 March 2006. BWG used the £21.5m loan plus other cash balances to finance a return ofapproximately £30m to shareholders, which was completed during July 2005. At the year-end the net debt excluding the 8.75% irredeemable cumulativepreference shares of £166.2m represented approximately 71% of Regulatory CapitalValue (RCV). We anticipate that the company will be able to maintain this ratioin the range of 75% to 80% over the remainder of the five-year regulatory periodto 2009/10. Dividends The company policy is to pay an annual level of ordinary dividends comprising: •A base level of dividend reflecting the cost of capital allowed by Ofwat in the determination of price limits, adjusted to reflect actual gearing levels and where appropriate actual performance relative to Ofwat's assumptions. •An amount equal to the post-tax interest receivable from Bristol Water Group plc in respect of intercompany loans. Interim dividends totalling £8.4m have been declared in respect of the year. TheBoard does not propose a final dividend. Pensions The company has a defined contribution pension scheme which was closed to newentrants a number of years ago and all new employees are offered stakeholderpension arrangements. At 31 March 2006 the gross surplus of the scheme, under FRS17, included withinthe company's balance sheet, was £4.4m. This represents a £16.3m improvementfrom the £11.9m deficit at 31 March 2005 reflecting the additional contributionof £7m made during the year and favourable net investment performance andactuarial movements. Board changes After 37 years service to the company, Roger Wyatt (Managing Director) retiredat the end of March 2006. His contribution to the company has been enormous andwe wish him a long and happy retirement. Peter Knowlson, HR Director, retired at30 September 2005 and we also wish him well for the future. I was appointed as a director and Chairman at the last Annual General Meeting.This has allowed separation of the roles of Chief Executive and Chairman in linewith good Corporate Governance. Following the Agbar acquisition, Juan Antonio Guijarro Ferrer, Manual NavarroAgullo and Manuel Cermeron were appointed to the board on 19 June 2006. ManualNavarro Agullo will take the role of Chief Executive, and Alan Parsons becomesManaging Director. We welcome the new members to the board. Conclusions The company is well placed for the future and it looks forward to being a memberof the Agbar group. Moger Woolley Chairman13 July 2006 PROFIT AND LOSS ACCOUNT for the year ended 31 March 2006 2006 2005 Restated Note £m £m Turnover 81.9 70.6 Operating costs (57.0) (52.2)Exceptional operating costs - (1.3)-------------------------------------------------------------------------------- Total operating costs 2 (57.0) (53.5)-------------------------------------------------------------------------------- Operating profit 24.9 17.1 Net interest payable and similar charges (6.3) (6.1)Dividends on 8.75% irredeemable cumulativepreference (1.1) (1.1)sharesNet finance income in respect of retirement benefitobligations 0.9 0.8-------------------------------------------------------------------------------- Profit on ordinary activities before taxation 18.4 10.7 Taxation on profit on ordinary activities 3 (6.8) (1.6)-------------------------------------------------------------------------------- Profit on ordinary activities after taxation 11.6 9.1 Dividends on ordinary shares 4 (10.2) (7.3)-------------------------------------------------------------------------------- Retained profit for the financial year 1.4 1.8================================================================================ Earnings per ordinary share 5 193.0p 151.9p================================================================================ All of the turnover and operating costs relate to continuing operations. There is no difference between the profit on ordinary activities before taxationand the retained profit for the financial year stated above and their historicalcost equivalents. STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES for the year ended 31 March 2006 2006 2005 Restated £m £m Profit attributable to Bristol Water plc shareholders 11.6 9.1 Actuarial gains recognised in respect of retirement benefitobligations 7.8 1.7Attributable deferred taxation (2.1) (0.5) Charged against operating profit for equity-settledshare-based payment 0.2 - Attributable deferred taxation 0.6 --------------------------------------------------------------------------------- Total recognised gains for the year 18.1 10.3-------------------------------------------------------------------------------- BALANCE SHEET at 31 March 2006 2006 2005 Restated Note £m £mFixed assetsTangible fixed assets 6 197.0 195.6 Investments - Loans to Bristol Water Group plc 68.5 47.0 Current assetsStocks 0.7 0.6Debtors 19.1 18.5Cash at bank and on deposit 7 40.5 12.0-------------------------------------------------------------------------------- 60.3 31.1-------------------------------------------------------------------------------- Creditors: amounts falling due within one yearShort term borrowings and derivatives 7 (2.5) (4.2)Other creditors (19.2) (17.7)-------------------------------------------------------------------------------- (21.7) (21.9)-------------------------------------------------------------------------------- Net current assets 38.6 9.2-------------------------------------------------------------------------------- Total assets less current liabilities 304.1 251.8 Creditors: amounts falling due after more than one 7 (204.2) (148.6)year 8.75% irredeemable cumulative preference shares 7 (12.5) (12.5) Deferred income (9.6) (8.6) Provisions for liabilities and charges 8 (18.8) (19.3) Retirement benefit obligations 9 3.1 (8.6)-------------------------------------------------------------------------------- Net assets 62.1 54.2-------------------------------------------------------------------------------- Capital and reservesCalled up share capital 6.0 6.0Share premium account 4.4 4.4Share option reserve 0.8 -Other reserves 5.8 5.8Profit and loss account 45.1 38.0-------------------------------------------------------------------------------- Equity shareholders' funds 10 62.1 54.2-------------------------------------------------------------------------------- CASH FLOW STATEMENT for the year ended 31 March 2006 2006 2005 Restated Note £m £m Net cash inflow from operating activities 11(a) 35.1 34.1-------------------------------------------------------------------------------- Returns on investments and servicing of financeInterest received 5.3 3.6Interest paid on term loans and debentures (8.4) (7.2)Interest paid on finance leases (1.2) (1.1)Dividends paid on 8.75% irredeemable cumulativepreference shares (1.1) (1.7)Net costs of issue of new loans (1.1) --------------------------------------------------------------------------------- (6.5) (6.4)-------------------------------------------------------------------------------- TaxationCorporation tax paid (1.7) (1.9)-------------------------------------------------------------------------------- Capital expenditure and investing activitiesPurchase of tangible fixed assets (22.5) (20.1)Contributions received 3.1 3.7Loan advanced to Bristol Water Group plc (21.5) --------------------------------------------------------------------------------- (40.9) (16.4)-------------------------------------------------------------------------------- Dividends paid on equity shares 4 (10.2) (7.3)-------------------------------------------------------------------------------- Cash (outflow)/inflow before management of liquid resources and financing (24.2) 2.1 Management of liquid resourcesbeing (increase)/decrease in short term deposits (29.1) 5.4-------------------------------------------------------------------------------- FinancingNew term loans 57.0 -Capital element of lease repayments (1.9) (1.6)Loan repayments (1.8) (5.3)Payments in respect of swap liability (0.6) (0.6)-------------------------------------------------------------------------------- 52.7 (7.5)-------------------------------------------------------------------------------- Decrease in cash 11(b) (0.6) - Cash, beginning of year 1.6 1.6-------------------------------------------------------------------------------- Cash, end of year 1.0 1.6-------------------------------------------------------------------------------- NOTES TO THE ACCOUNTS 1. BASIS OF PREPARATION AND CIRCULATION These preliminary statements do not constitute the statutory accounts for the year ended 31 March 2006. The statutory accounts have been reported on by the auditors without qualification but have not yet been delivered to the Registrar of Companies. The comparative figures for 2005 have been extracted from the accounts of Bristol Water plc for the year ended 31 March 2005 upon which the auditors' report was unqualified and which have been delivered to the Registrar of Companies. The Annual Report and Accounts will be posted to shareholders on or before 9 August 2006. Copies will be available to the public from the registered office at PO Box 218, Bridgwater Road, Bristol BS99 7AU. The Annual General Meeting will be held at the Bristol Water plc Head Office, Bridgwater Road, Bristol, on Monday 11 September 2006 at 9.00 am. During this year the company has adopted the following new Financial Reporting Standards (FRS) in its financial statements, insofar as they are applicable to the affairs of the company: FRS17 - Retirement benefits FRS20 - Share based payments FRS21 - Events after the balance sheet date FRS22 - Earnings per share FRS25 - Financial Instruments: Disclosure and presentation FRS26 - Financial Instruments: Measurement FRS28 - Corresponding amounts All comparative data have been restated accordingly. The main effects of these changes on the reported results of the company are as follows: FRS17: Full recognition is made in these accounts for the surplus arising in the company's section of the Water Companies' Pension Scheme (WCPS). The effect of the change in accounting policy is • to increase profit after tax by £0.4m (year ended 31 March 2005: £1.0m) • to increase total recognised gains and losses for the year by £5.9m (year ended 31 March 2005: £2.2m) • to increase/(decrease) net assets as at 31 March 2006 by £4.3m (as at 31 March 2005: £(7.0)m) FRS20: Provision is made for the notional expense arising on the grant of share options under the terms of the Bristol Water Group Savings Related Share Option Scheme. No restatement of the previous year is necessary as the effect on both the current and prior years is not material. The effect of the change in accounting policy is • to decrease profit after tax by £0.1m (year ended 31 March 2005: Nil) • to decrease total recognised gains and losses for the year by £0.1m (year ended 31 March 2005: Nil) • to increase net assets as at 31 March 2006 by £0.6m (as at 31 March 2005: Nil) FRS21: Dividends and other distributions to shareholders are reflected in financial statements when approved by shareholders in a general meeting, except for interim dividends which are included in financial statements when paid by the company. Accordingly, proposed dividends are not included as a liability in the financial statements. This reduces retained profit for the year ended 31 March 2006 by £1.8m (at 31 March 2005: increased by £0.8m). It increases net assets at 31 March 2006 by £3.5m (at 31 March 2005: by £5.3m). FRS25: The company's 8.75% irredeemable cumulative preference shares have been reclassified from equity to long-term creditors. The associated dividends have been reclassified as interest expense. The effect of the change in accounting policy is • to decrease profit after tax by £1.1m (year ended 31 March 2005: £1.1m) • to leave total recognised gains and losses for both years unchanged • to decrease net assets as at 31 March 2006 by £12.5m (as at 31 March 2005: £12.5m) FRS26: The company has an interest rate swap, which matures on 26 September 2006, which is now measured at fair value. The effect of the change in accounting policy is • to increase profit after tax by £0.3m (year ended 31 March 2005: £0.4m) • to increase total recognised gains and losses for the year by £0.3m (year ended 31 March 2005: £0.4m) • to decrease net assets as at 31 March 2006 by £0.2m (31 March 2005: £0.5m). As outlined in the company's Annual Report and Accounts for the year ended 31March 2005, the company has not adopted IFRS for its financial statements forthe year ended 31 March 2006, and has no current plans to do so until UKGAAP andIFRS are fully harmonised. As a result of changes made in The Water Act 2003, revenue deficit contributionsreceived on or after 1 April 2005 are credited to deferred income and amortisedover a three-year period. 2. OPERATING COSTS Operating costs comprise - Operating Operating costs costs before Exceptional after Operating exceptional operating exceptional Costs items costs* items 2006 2005 2005 2005 Restated Restated Restated £m £m £m £m Net payroll cost 11.5 11.1 1.1 12.2 Total other operating costs 27.6 26.5 0.2 26.7 Net depreciation** 17.9 14.6 - 14.6--------------------------------------------------------------------------------Total operating costs 57.0 52.2 1.3 53.5-------------------------------------------------------------------------------- *Exceptional operating costs - Restructuring During the year ended 31 March 2005 the Board instigated a restructuring programme to improve the operating efficiency of the company. This involved a number of redundancies and related pension funding payments, asset write-downs and incidental expenses. Accordingly the restructuring costs were recognised in the profit and loss account for the year ended 31 March 2005. There were no exceptional operating costs in 2006. **Depreciation The depreciation charge for the year is stated after charging £1.0m accelerated depreciation in respect of plant planned to be taken out of service before it is fully depreciated as part of a capital project to meet quality obligations and streamlining of treatment processes (2005 - £Nil). 3. TAXATION ON PROFIT ON ORDINARY ACTIVITIES 2006 2005 Restated £m £m Analysis of charge for the year, all arising in the United Kingdom: Current tax: Corporation tax at 30% (2005 - 30%) 2.1 1.0 Advance Corporation Tax written back - (1.5) Adjustment to prior periods (0.1) 1.6 Receipts in respect of group relief 1.3 1.0-------------------------------------------------------------------------------- 3.3 2.1-------------------------------------------------------------------------------- Deferred tax: Current year movement 2.8 1.4 Adjustment to prior periods 0.1 (1.8) Effect of discounting 0.6 (0.1)-------------------------------------------------------------------------------- 3.5 (0.5)-------------------------------------------------------------------------------- Tax on profit on ordinary activities 6.8 1.6-------------------------------------------------------------------------------- The adjustment to prior periods in 2005 primarily relates to the effect ofthe company reducing its capital allowance claim for the year ended 31March 2003. This amendment enabled the company to write back AdvanceCorporation Tax (ACT) to be utilised against the resulting increasedtaxable profits. The ACT written back was not recognised as a deferred tax asset in theprevious year. Factors that may affect future tax charges ACT is recognised as an asset to the extent that it is foreseen to berecoverable in the next 12 months. There is a further £3.4m (2005 - £3.4m)of unrecognised ACT carried forward at 31 March 2006. 4. DIVIDENDS 2006 2005 Restated £m £m Ordinary Shares • Dividend in respect of 2003/04: Final dividend of 74.27 pence per share, approved at the Annual General Meeting on 19 July 2004 - 4.5 • Dividend in respect of 2004/05: Interim dividend of 47.15 pence per share, approved by the Board on 7 December 2004 - 2.8 Final dividend of 88.00 pence per share, approved at the Annual General Meeting on 18 July 2005 5.3 - • Dividend in respect of 2005/06: First interim dividend of 19.62 pence per share, approved by the Board on 29 September 2005 1.2 - Second interim dividend of 38.68 pence per share, approved by the Board on 8 December 2005 2.3 - Third interim dividend of 23.53 pence per share, approved by the Board on 28 March 2006 1.4 --------------------------------------------------------------------------------- 10.2 7.3-------------------------------------------------------------------------------- On 16 May 2006 the Board declared a fourth interim dividend of 58.02 penceper share, totalling £3.5m, in respect of the year ended 31 March 2006. Inaccordance with FRS21 this dividend is not recognised in these accounts as aliability. The Board does not propose a final dividend. 5. EARNINGS PER ORDINARY SHARE 2006 2005 Restated m m Earnings per ordinary share have been calculated as follows - On average number of ordinary shares in issue during the year - Earnings attributable to ordinary shares £11.6 £9.1 Weighted average number of ordinary shares 6.0 6.0 As the company has no obligation to issue further shares, disclosure ofearnings per share on a fully diluted basis is not required. 6. TANGIBLE FIXED ASSETS 2006 2005 £m £m Net book value, beginning of year 195.6 193.8 Additions 22.6 20.3 Disposals (0.2) 0.1 Grants and contributions (2.4) (3.7) Depreciation (18.6) (14.9)-------------------------------------------------------------------------------- Net book value, end of year 197.0 195.6-------------------------------------------------------------------------------- 7. NET BORROWINGS 2006 2005 Restated £m £m Cash and short term deposits 40.5 12.0 Debt due within one year (2.5) (4.2) Debt due after one year (204.2) (148.6)-------------------------------------------------------------------------------- Net borrowings excluding 8.75% irredeemable (166.2) (140.8) cumulative preference shares 8.75% irredeemable cumulative preference shares (12.5) (12.5)-------------------------------------------------------------------------------- Net borrowings including 8.75% irredeemable (178.7) (153.3) cumulative preference shares -------------------------------------------------------------------------------- 8. PROVISIONS FOR LIABILITIES AND CHARGES 2006 2005 Restated £m £m Restructuring costs (see note 2) - 0.9 Deferred tax (excluding deferred tax on retirement 18.8 18.4 benefit obligations)-------------------------------------------------------------------------------- 18.8 19.3-------------------------------------------------------------------------------- Provision for deferred tax comprises - Accelerated capital allowances and capital element of 36.7 35.3 finance leases Deferred income (2.5) (2.6) Short term timing differences (1.7) (0.5) Arising on equity-settled share based payments (0.6) - Retirement benefit obligations 1.3 (3.6) -------------------------------------------------------------------------------- 33.2 28.6-------------------------------------------------------------------------------- Effect of discounting: Retirement benefit obligations - 0.3 Other (13.1) (13.8)-------------------------------------------------------------------------------- (13.1) (13.5)-------------------------------------------------------------------------------- Net provision, including deferred tax on retirement 20.1 15.1 benefit obligations Less, attributable to retirement benefit obligations (1.3) 3.3 -------------------------------------------------------------------------------- Net provision, excluding deferred tax on retirement 18.8 18.4 benefit obligations -------------------------------------------------------------------------------- 9. PENSIONS Asset distribution and expected return The following table sets out the key assumptions used for the valuation of the company's section of WCPS. The table also sets out as at the accounting date the fair value of the assets, a breakdown of the assets into the main asset classes, the present value of the section liabilities, and the resulting surplus / (deficit). Expected long term Market values of rate of return section assets 2006 2005 2004 2006 2005 2004 restated £m £m £m Equities 7.4% 7.7% 7.9% 78.8 63.2 71.5Bonds 4.3% 4.7% 4.7% 47.0 35.0 18.4--------------------------------------------------------------------------------Market value of section 125.8 98.2 89.9assetsPresent value of (121.4) (110.1) (103.4)liabilities-------------------------------------------------------------------------------- Surplus/(deficit) in 4.4 (11.9) (13.5)the sectionDeferred taxation (1.3) 3.3 4.1-------------------------------------------------------------------------------- Net pension asset/ 3.1 (8.6) (9.4)(liability) -------------------------------------------------------------------------------- 10. MOVEMENT IN SHAREHOLDERS' FUNDS Total Total 2006 2005 Restated £m £m Beginning of year as previously reported 68.9 69.3 Effect of adoption of FRS17 (7.0) (9.2) Effect of adoption of FRS21 5.3 4.5 Effect of adoption of FRS25 (12.5) (12.5) Effect of adoption of FRS26 (0.5) (0.9)-------------------------------------------------------------------------------- At beginning of year as restated 54.2 51.2 Profit for year 11.6 9.1 Actuarial gains recognised in respect of retirement 7.8 1.7 benefit obligations Attributable deferred taxation (2.1) (0.5) Charged against operating profit for equity-settled 0.2 - share based payment Attributable deferred taxation 0.6 - Dividends (10.2) (7.3)-------------------------------------------------------------------------------- End of year 62.1 54.2-------------------------------------------------------------------------------- 11. ADDITIONAL INFORMATION TO THE CASH FLOW STATEMENT (a) Reconciliation of operating profit to net cash inflow from operating activities - 2006 2005 Restated £m £m Operating profit 24.9 17.1 Depreciation, net 17.9 14.6 Difference between pension charges and normal 0.6 0.6 contributions Equity-settled share based payments 0.2 - -------------------------------------------------------------------------------- Cash flow from operations 43.6 32.3 Working capital movements - Stocks (0.1) 0.1 Debtors (0.5) 1.2 Creditors and provisions 0.6 0.5 Additional contributions to pension scheme, (8.5) - including payments in respect of restructuring-------------------------------------------------------------------------------- Net cash inflow from operating activities 35.1 34.1-------------------------------------------------------------------------------- (b) Reconciliation of net cash flow to movement in net borrowings - 2006 2005 Restated £m £m Decrease in net cash in year (0.6) - Cash used to repay borrowings 4.3 7.5 Cash from new borrowings (57.0) - Net costs of issue of loans 1.1 - Cash from increase/(decrease) in short term deposits 29.1 (5.4)-------------------------------------------------------------------------------- (23.1) 2.1 New debt increase not affecting cash flow (2.3) (1.3) Net borrowings at beginning of year including 8.75% (153.3) (154.1) irredeemable cumulative preference shares-------------------------------------------------------------------------------- Net borrowings at end of year including 8.75% (178.7) (153.3) irredeemable cumulative preference shares -------------------------------------------------------------------------------- This information is provided by RNS The company news service from the London Stock Exchange