Last checked at 31 May 2022 07:00
Announcement of unaudited preliminary financial results for the twelve months ended 31 March 2022
Bristol Water plc (the "Company") announces its unaudited results for the twelve months ending 31 March 2022.
HIGHLIGHTS
For the year ended 31 March 2022
2022 | 2021 | |
£m | £m | |
Turnover | 124.2 | 119.5 |
EBITDA | 61.4 | 48.6 |
Operating profit | 32.6 | 21.0 |
Profit before tax | 13.7 | 8.9 |
(Loss)/Profit after tax | (9.7) | 6.8 |
Net debt (excluding 8.75% irredeemable cumulative preference shares) at 31 March | 389.2 | 379.2 |
Regulatory Capital Value ("RCV") | 586.0 | 550.5 |
Ratio of net debt (excluding 8.75% irredeemable cumulative preference shares) to RCV |
66.4% |
68.9% |
Capital investment before grants and contributions | 42.1 | 38.1 |
Summary
· Strong financial performance with EBITDA improvement of 26.3% to £61.4m, as a result of higher customer demand and strong cost control.
· Revenues increased as a result of higher regulatory allowances coupled with recovery in the non-household market post COVID-19 lockdowns.
· Operating costs before depreciation decreased by 11.4%, reflecting the successful delivery of the Company's transformation programme, despite significant upward inflationary pressures on power, chemicals and supply chain.
· £42.1m investment in the capital programme focussing on improving and renewing the company's asset base.
· Profit before taxation improved by £4.8m to £13.7m. However, the impact of higher future UK corporation tax rates led to a one-off deferred tax charge of £20.5m. This in turn has led to a loss after tax of £9.7m.
· Cash generation and RCV growth resulted in lower gearing as at 31 March 2022.
For further information contact: | |||
Mel Karam, Chief Executive Officer | |||
Laura Flowerdew, Chief Financial Officer | |||
Bristol Water plc | |||
Tel 0117 953 6470 | |||
Or contact: | Bristol Water Corporate Affairs on 0117 953 6470 during office hours or 0800 917 8066 at any time. | ||
CHIEF EXECUTIVE OFFICER'S REPORT
It is with pride that I look back over the last year and reflect on how much the business has achieved, despite another year of uncertainty and change. We welcome the merger of Bristol Water into the Pennon Group, and look forward to supporting the integration of the business. We are excited about the opportunities the merger will bring for our staff, with benefits from sharing experiences, best practice and plans for the future. Working together, and by sharing the best from across the Group, we will strive to continually improve our service to our customers, communities and wider stakeholders.
Whilst the year has seen a change in shareholder, our focus has remained on delivering for our customers and looking to improve our performance both operationally and financially. The skill, dedication and professionalism shown by the Bristol Water team over the last year has been outstanding. They should all be proud of what they have achieved through embracing change whilst keeping the focus on the communities we serve which makes Bristol Water so special. We have seen continued excellence in our leakage performance, with our 3 year average leakage performance now at 36.0 Ml/day (2020/21: 37.9Ml/day). This is the lowest level in the industry, and we know we have a tough challenge over future years in striving to meet a continued reduction.
I am particularly proud of our performance in respect of supply interruptions. This is a critical measure for our customers, as it reflects amount of time for which customers have had their water supply interrupted over the year. Our performance reflects 2 minutes 31 seconds across the year (20202/21: 30 minutes 17 seconds) - a huge improvement year on year, and reflective of improvements in process, ways of working, and approach from our operational and support teams across the business. Whilst we have experienced operational challenges - such as the burst main at Colliters Way last summer, which is one of our key mains to supply a large area of Bristol - the customer impact of these incidents has been mitigated by using approaches such as infusion into the network. Despite 11 pumping stations losing power during Storm Eunice, we kept supply interruptions to a minimum with advanced planning, mobilising our technology and our smart network monitoring. It is great to see the enthusiasm and innovation with which our teams have embraced the challenge.
Water quality performance has not achieved our targets this year. Appearance contacts did not reduce as our stretching targets required, but by the end of the year we were back on track. Although we aim for 100% water quality compliance, and the number of standard failures has remained low, we are determined to take action to continuously improve our performance. Our action and improvement plans have reduced the risks to water quality during the year, and we are increasing our focus on this area at a time that many of our performance measures have delivered record good performance for Bristol Water.
Health and safety performance is another area where we have not met our goals. We have seen a high number of hazards and near misses reported both by our employees and our contractors; whilst it is good that issues are identified, there is much more to do to avoid accidents. We are focussed on doing more to minimise risks and maintain focus and vigilance, to ensure all our staff go home to their families without injury at the end of every day.
Our focus on delivering excellent customer service in everything we do has resulted in continued good performance on the critical C-Mex performance measure. Although we were disappointed not to improve beyond 6th place overall, I am delighted by the fantastic 3rd place on the billing component. This demonstrates the hard work undertaken with Pelican, our billing joint venture with Wessex Water. Our operational customer service has also seen a focus and dedication from across the business, with our operational teams going out of their way to deliver tailored, supportive service to our customers. It was great to be highlighted by the Institute of Customer Service as one of the top 10 organisations across all sectors for complaint handling last year.
It was a great privilege to celebrate 175 years of Bristol Water, and the heritage that comes with this. Our social contract, the first of its kind by any utility company, continues that work to this day, with 93% satisfaction over the last year amongst the community stakeholders who work with us on its delivery. It was an honour to meet His Royal Highness the Duke of Gloucester in October, and to be able to share with him the incredible work our people do, and have done over our history.
With this in mind, I look forward to a future that builds and celebrates this past, but also allows us to flourish and grow our business through collaborating with our peers across the Pennon Group. I am excited to find out what the future holds.
Mel Karam,
Chief Executive Officer
30 May 2022
UNAUDITED PRELIMINARY FINANCIAL STATEMENTS
YEAR ENDED 31 March 2022
INCOME STATEMENT (UNAUDITED)
for the year ended 31 March 2022
|
| 2022 | 2021 | |
Note |
| £m | £m | |
|
|
| ||
Revenue | 4 |
| 124.2 | 119.5 |
|
|
|
| |
Operating costs excluding impairment losses on trade receivables | 5 |
| (88.8) | (91.4) |
Impairment losses on trade receivables | 5 |
| (2.7) | (4.9) |
Operating costs before exceptional items |
|
| (91.5) | (96.3) |
|
|
| ||
Exceptional operating costs | 5 |
| (0.1) | (2.2) |
Total net operating costs | 5 |
| (91.6) | (98.5) |
|
|
| ||
Operating profit |
|
| 32.6 | 21.0 |
|
|
|
| |
Other net interest payable and similar charges | 6 | (17.8) | (11.0) | |
|
| |||
Dividends on 8.75% irredeemable cumulative preference shares | 6 | (1.1) | (1.1) | |
|
| |||
Net interest payable and similar charges | 6 | (18.9) | (12.1) | |
|
| |||
Profit before tax |
|
| 13.7 | 8.9 |
|
|
|
| |
Taxation on profit on ordinary activities | 7 |
| (23.4) | (2.1) |
|
|
|
| |
(Loss) / profit for the financial year |
|
| (9.7) | 6.8 |
|
|
|
| |
|
|
|
| |
(Loss) / earnings per ordinary share | 8 |
| (161.7)p | 113.3p |
|
|
|
| |
|
|
|
| |
|
|
|
|
All activities above relate to the continuing activities of the Company.
STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
for the year ended 31 March 2022
|
| 2022 | 2021 | ||
| Note |
| £m | £m | |
|
|
| |||
(Loss)/profit for the financial year |
|
| (9.7) | 6.8 | |
|
|
| |||
Other comprehensive income:
|
|
|
| ||
Items that will not be reclassified to profit and loss |
|
|
| ||
Actuarial loss on retirement benefit surplus |
|
| (1.0) | (0.3) | |
Remeasurement of defined benefit pension scheme restriction | 7 |
| 0.4 | 0.3 | |
|
|
|
| ||
Other comprehensive loss for the year, net of tax
|
|
| (0.6) | - | |
Total comprehensive (loss) / income for the year |
|
| (10.3) | 6.8 | |
|
| ||||
STATEMENT OF FINANCIAL POSITION (UNAUDITED)
at 31 March 2022
| 2022 | 2021 | ||
| Note | £m | £m | |
|
| |||
Non-current assets |
| |||
Property, plant and equipment |
| 696.6 | 682.9 | |
Intangible assets |
| 12.7 | 13.3 | |
Other investments - Loans to group undertakings |
| 61.1 | 61.1 | |
Deferred income tax assets |
|
| 7.9 | 5.9 |
Retirement benefit surplus |
| 8.1 | 9.1 | |
|
| 786.4 | 772.3 | |
|
|
| ||
Current assets |
|
| ||
Inventory |
| 1.9 | 1.7 | |
Trade and other receivables |
| 29.5 | 29.6 | |
Cash and cash equivalents |
| 12.0 | 10.9 | |
|
| 43.4 | 42.2 | |
|
|
| ||
Total assets |
| 829.8 | 814.5 | |
|
|
| ||
|
|
| ||
Non-current liabilities |
|
| ||
Lease liabilities | 12 | (1.1) | (1.5) | |
Deferred income tax liabilities |
| (93.2) | (72.3) | |
Borrowings and derivatives | 12 | (399.7) | (379.2) | |
8.75% irredeemable cumulative preference shares | 12 | (12.5) | (12.5) | |
Deferred income |
| (83.0) | (82.9) | |
Government grants |
| (0.3) | (0.3) | |
|
|
| ||
|
| (589.8) | (548.7) | |
|
|
| ||
Current liabilities |
|
| ||
Lease liabilities | 12 | (0.4) | (0.4) | |
Current portion of borrowings and derivatives | 12 | - | (9.0) | |
Current portion of deferred income |
| (1.9) | (1.8) | |
Trade and other payables |
| (38.0) | (35.3) | |
Provisions for liabilities |
| - | (0.5) | |
| (40.3) | (47.0) | ||
|
| |||
Total liabilities | (630.1) | (595.7) | ||
|
| |||
|
|
| ||
Net assets |
| 199.7 | 218.8 | |
|
|
| ||
Equity |
|
| ||
Called-up share capital |
| 6.0 | 6.0 | |
Share premium account | 4.4 | 4.4 | ||
Other reserves | 5.8 | 5.8 | ||
Retained earnings | 183.5 | 202.6 | ||
|
| |||
Total Equity | 199.7 | 218.8 |
STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
For the year ended 31 March 2022
|
|
|
| ||||||
Called up share capital | Share premium account | Capital redemption reserve | Retained earnings | Total | |||||
| |||||||||
£m | £m | £m | £m | £m | |||||
| |||||||||
Balance at 1 April 2020 | 6.0 | 4.4 | 5.8 | 201.8 | 218.0 | ||||
Profit for the year | - | - | - | 6.8 | 6.8 | ||||
| |||||||||
Other comprehensive income for the year: | |||||||||
Actuarial loss recognised in respect of | |||||||||
retirement benefit obligations | - | - | - | (0.3) | (0.3) | ||||
Remeasurement of defined benefit pension scheme | - | - | - | 0.3 | 0.3 | ||||
Total comprehensive income for the year |
- |
- |
- |
6.8 |
6.8 | ||||
| |||||||||
Ordinary dividends | - | - | - | (6.0) | (6.0) | ||||
| |||||||||
Balance as at 31 March 2021 | 6.0 | 4.4 | 5.8 | 202.6 | 218.8 | ||||
|
| ||||||||
|
| ||||||||
Balance as at 1 April 2021 | 6.0 | 4.4 | 5.8 | 202.6 | 218.8 | ||||
|
| ||||||||
Loss for the year | - | - | - | (9.7) | (9.7) | ||||
Other comprehensive loss for the year: |
| ||||||||
| Actuarial loss recognised in respect of | ||||||||
| retirement benefit obligations | - | - | - | (1.0) | (1.0) | |||
| Remeasurement of defined benefit pension scheme | - | - | - | 0.4 | 0.4 | |||
|
| ||||||||
Total comprehensive loss for the year |
- |
- |
- | (10.3) | (10.3) | ||||
|
| ||||||||
Ordinary dividends | - | - | - | (8.9) | (8.9) | ||||
Share based payments | - | - | - | 0.1 | 0.1 | ||||
|
| ||||||||
Balance as at 31 March 2022 | 6.0 | 4.4 | 5.8 | 183.5 | 199.7 | ||||
The Board has not proposed a final dividend in respect of the financial year 2021/22 (2021: £nil).
CASH FLOW STATEMENT (UNAUDITED)
For the year ended 31 March 2022
| 2022 | 2021
| ||||
| Note |
| £m | £m | ||
Cash flows from operating activities |
|
|
|
| ||
Profit before taxation |
|
| 13.7 | 8.9 | ||
Adjustments for: |
|
|
| |||
Share based payments |
|
| 0.1 | - | ||
Deferred income amortisation |
|
| (1.9) | (1.8) | ||
Depreciation | 5 |
| 25.0 | 24.0 | ||
Amortisation of intangibles | 5 |
| 3.9 | 3.7 | ||
Difference between pension charges and |
|
|
| |||
contributions paid |
|
| 0.9 | 1.0 | ||
Profit on disposal of assets |
|
| (0.1) | (0.1) | ||
Interest income | 6 |
| (3.6) | (3.9) | ||
Interest expense | 6 |
| 22.8 | 16.4 | ||
Pension interest income | 6 |
| (0.3) | (0.4) | ||
|
|
| ||||
(Increase) in inventory |
|
| (0.2) | - | ||
(Increase) / decrease in trade and other receivables |
|
| (1.3) | 2.3 | ||
Decrease in trade and other creditors and provisions |
|
| (0.7) | (3.0) | ||
Cash generated from operations |
|
| 58.3 | 47.1 | ||
|
|
| ||||
Interest paid |
|
| (12.4) | (12.5) | ||
Corporation taxes paid |
|
| (1.9) | (1.4) | ||
Contributions received |
|
| 2.1 | 2.9 | ||
|
|
|
| |||
Net cash inflows from operating activities |
|
| 46.1 | 36.1 | ||
|
|
|
| |||
Cash flows from investing activities |
|
|
| |||
Purchase of property, plant and equipment and intangibles |
|
| (40.4) | (41.9) | ||
Proceeds from sale of fixed assets |
|
| 0.2 | 0.3 | ||
Interest received | 6 |
| 3.6 | 3.9 | ||
Repayment of intercompany loan receivable |
|
| - | 4.4 | ||
|
|
| ||||
Net cash used in investing activities |
| (36.6) | (33.3) | |||
|
|
| ||||
|
| |||||
Cash flows from financing activities |
|
| ||||
Proceeds from loans and borrowings |
|
| 11.0 | 6.0 | ||
Repayment of loans and borrowings |
|
| (9.0) | - | ||
Payment of finance lease liabilities |
|
| (0.4) | (0.9) | ||
Preference dividends paid | 6 |
| (1.1) | (1.1) | ||
Equity dividends paid |
| (8.9) | (6.0) | |||
|
|
| ||||
Net cash used in financing activities |
| (8.4) | (2.0) | |||
|
| |||||
|
|
| ||||
Net increase in cash and cash equivalents |
| 1.1 | 0.8 | |||
|
| |||||
Cash and cash equivalents, beginning of year |
|
| 10.9 | 10.1 | ||
|
|
| ||||
Cash and cash equivalents, end of year |
|
| 12.0 | 10.9 | ||
NOTES TO THE FINANCIAL STATEMENTS
1 | General information Bristol Water plc ("the Company") is a water supply company holding an instrument of appointment as set out by the Water Industry Act 1991. The Company is the licensed monopoly provider of water services in the Bristol area, and as such is regulated by the Water Services Regulation Authority - Ofwat.
Bristol Water plc is a public company, limited by shares, with irredeemable preference shares and debenture stock listed on the London Stock Exchange.
The Company is incorporated and domiciled in England, United Kingdom. The address of its registered office is Bridgwater Road, Bristol, BS13 7AT, England.
The financial information for the year ended 31 March 2022 does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006.
The statutory accounts for the year ended 31 March 2022 will be finalised on the basis of the financial information presented by the Directors in this preliminary announcement, and will be delivered to the Registrar of Companies in due course. |
|
|
2 | Basis of preparation |
The unaudited financial statements of the Company are prepared on a historical cost basis, except for financial assets and financial liabilities (including derivative instruments) measured at fair value and in accordance with Financial Reporting Standard 101, 'Reduced Disclosure Framework - Disclosure exemptions from EU-adopted IFRS for qualifying entities' ("FRS 101") and with the provisions of the Companies Act 2006.
The accounting policies adopted are consisted with those followed in the preparation of the Company's 2022 Annual Report and Financial Statements which have not changed significantly from those adopted in the Company's 2021 Annual Report and Financial Statements (which are available on the Company website www.bristolwater.co.uk). |
3 | Going concern The Company meets its day-to-day working capital requirements through its cash reserves and borrowings. At 31 March 2022 the Company has access to undrawn committed funds and cash totalling £39.0m (£32.9m excluding restricted cash), and the Company has received confirmation from Pennon Group plc that it will provide support to the Company should it be required, to meet its liabilities as they fall due for the foreseeable future. As a result, the Directors have concluded that the Company has adequate resources, or the reasonable expectation of raising further resources as required, to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements. Further information on the Company's borrowings is given in note 9.
|
4. | REVENUE |
| ||||
|
| 2022 £m | 2021 £m |
| ||
| Appointed income |
|
|
| ||
| Household - measured |
| 55.3 | 53.4 |
| |
| Household - unmeasured |
| 40.9 | 41.7 |
| |
| Non-household - measured |
| 22.2 | 19.2 |
| |
| Non-household - unmeasured |
| 0.3 | 0.3 |
| |
| Contributions from developers |
| 1.9 | 1.8 |
| |
| Third party services |
| 1.4 | 1.4 |
| |
| Rental income |
| 1.0 | 0.8 |
| |
|
| 123.0 | 118.6 |
| ||
| Non-appointed income |
|
| |||
| Recreations |
| 0.7 | 0.5 |
| |
| Rental income |
| 0.2 | 0.1 |
| |
| Other |
| 0.3 | 0.3 |
| |
|
| 1.2 | 0.9 |
| ||
|
|
|
| |||
|
| 124.2 | 119.5 |
| ||
|
Appointed income is income earned under the Company's water's licence to supply water. Non-appointed income relates to activities that do not require a water supply licence.
|
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5. | OPERATING COSTS
| ||||
| (a) Operating costs includes - |
|
| ||
| 2022 | 2021 | |||
| £m | £m | |||
|
| ||||
|
| ||||
| Payroll cost, net of recharges to fixed assets and including retirement benefit costs |
17.0 |
18.3 | ||
|
|
| |||
| Inventory recognised as an expense | 2.8 | 2.6 | ||
|
| ||||
| Depreciation of tangible assets including impairment | 25.0 | 24.0 | ||
|
| ||||
| Amortisation of intangible assets | 3.9 | 3.7 | ||
|
| ||||
| Other operating charges | 40.1 | 42.8 | ||
| Operating costs excluding impairment losses on trade receivables | 88.8 | 91.4 | ||
|
|
| |||
| Impairment of trade receivables | 2.7 | 4.9 | ||
| Total operating costs before exceptional items | 91.5 | 96.3 | ||
|
| ||||
|
| ||||
| Acquisition costs | 0.1 | - | ||
| Provision for legal and similar costs | - | (0.5) | ||
| Transformation costs | - | 2.1 | ||
| Historic raw water costs | - | 0.6 | ||
| Total exceptional items in the income statement | 0.1 | 2.2 | ||
|
|
| |||
| Total net operating costs | 91.6 | 98.5 | ||
|
|
| |||
|
The acquisition costs relate to costs incurred in relation to the acquisition of the Company by Pennon Group plc and the review of the acquisition by the Competition and Markets Authority.
The prior year exceptional costs relate to provisions for legal costs relating to two separate legal processes the Company entered into in the year ended 31 March 2020 which both concluded in the year ended 31 March 2021; increase in charges payable for raw water abstraction for the financial year 2018/19 and 2019/20 following the conclusion of the arbitration with the CRT; and transformation costs relating to a restructuring programme.
| ||||
6. | NET INTEREST PAYABLE AND SIMILAR CHARGES |
|
| ||||
| 2022 | 2021 | |||||
|
| £m | £m | ||||
| Interest payable and similar charges relate to: |
|
| ||||
|
|
| |||||
| Bank borrowings | 2.0 | 2.0 | ||||
| Term loans and debentures: |
| |||||
|
| Interest charges | 10.4 | 10.2 | |||
|
| Indexation | 9.6 | 3.2 | |||
| Leases | 0.1 | 0.2 | ||||
| Capitalisation of borrowing cost | (0.4) | (0.3) | ||||
| Dividends on 8.75% irredeemable cumulative preference shares | 1.1 | 1.1 | ||||
| 22.8 | 16.4 | |||||
| Less interest receivable and similar income: |
| |||||
|
| ||||||
| Interest income in respect of retirement benefit scheme | (0.3) | (0.4) | ||||
| Loan to BWHUK - interest receivable | (3.6) | (3.9) | ||||
| (3.9) | (4.3) | |||||
|
| ||||||
| Total net interest payable and similar charges | 18.9 | 12.1 | ||||
|
| ||||||
| The rate used to determine the amount of borrowing costs eligible for capitalisation was 5.0% (2021: 4.2%), which is the weighted average interest rate of applicable borrowings. | ||||||
|
| ||||||
| Dividends on the 8.75% irredeemable cumulative preference shares are payable at a fixed rate of 4.375% on 1 April and 1 October each year. Payment by the Company to the share registrars is made two business days earlier. The payments are classified as interest in accordance with IFRS 9. | ||||||
7. | TAXATION | |||||
| 2022 | 2021 | ||||
|
|
| £m | £m | ||
| Tax expense included in Income Statement |
|
| |||
|
|
|
| |||
| Current tax: |
|
| |||
| Corporation tax on profits for the year |
| 1.3 | 1.6 | ||
| Adjustment to prior years |
| 3.3 | (0.2) | ||
| Total current tax |
| 4.6 | 1.4 | ||
|
|
| ||||
| Deferred tax: |
|
| |||
| Origination and reversal of timing differences |
| 1.4 | 0.5 | ||
| Adjustment to prior years |
| (3.1) | 0.2 | ||
Effect of change in UK corporation tax rate |
| 20.5 | - | |||
Total deferred tax |
| 18.8 | 0.7 | |||
|
| |||||
Tax expense on profit |
| 23.4 | 2.1 | |||
|
| |||||
Tax income included in other comprehensive income |
| |||||
|
| |||||
Remeasurement of post employment benefit liability |
| (0.4) | (0.3) | |||
Total tax income included in other comprehensive expense | (0.4) | (0.3) | ||||
| ||||||
Factors affecting future tax charges The UK main rate of corporation tax will increase to 25% from 1 April 2023. This change was substantively enacted on 24 May 2021, as such deferred tax liabilities and assets have been recalculated and recorded at the rate they are expected to unwind. This has increased the tax charge in the income statement by £20.5m. | ||||||
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8. | EARNINGS PER ORDINARY SHARE | ||||
| 2022 | 2021 | |||
| m | m | |||
| Basic earnings per ordinary share have been calculated as follows - |
| |||
| Earnings attributable to ordinary shares | £(9.7) | £6.8 | ||
| Weighted average number of ordinary shares | 6.0 | 6.0 | ||
| (161.7)p | 113.3p | |||
|
| ||||
| As the Company has no obligation to issue further shares, disclosure of earnings per share on a fully diluted basis is not relevant. | ||||
9. | NET BORROWINGS | ||||||
|
| 2022 | 2021 | ||||
|
|
| £m | £m | |||
| Amounts falling due within one year |
|
| ||||
| Bank and other term loans |
| - | 9.0 | |||
| Lease liabilities |
| 0.4 | 0.4 | |||
|
|
| 0.4 | 9.4 | |||
|
|
|
| ||||
| Amounts falling due after one year |
|
| ||||
| Bank and other term loans - secured |
| 397.0 | 376.5 | |||
| Net unamortised premiums arising on issue of term loans |
| 1.1 | 1.1 | |||
| Lease liabilities |
| 1.1 | 1.5 | |||
|
| 399.2 | 379.1 | ||||
|
|
| |||||
| Irredeemable |
|
| ||||
| Debentures |
| 1.6 | 1.6 | |||
|
| 1.6 | 1.6 | ||||
|
|
| |||||
| Cash and cash equivalents |
| (12.0) | (10.9) | |||
|
|
| |||||
| Net borrowings excluding 8.75% irredeemable cumulative preference shares |
| 389.2 | 379.2 | |||
|
|
| |||||
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| 8.75% irredeemable cumulative preference shares |
| 12.5 | 12.5 | |||
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| Net borrowings |
| 401.7 | 391.7 | |||
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None of the bank and other term loans are payable in instalments. | |||||||
| Borrowing facilities |
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Unutilised borrowing facilities are as follows: |
| 2022 | 2021 | ||||
| £m | £m | |||||
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Expiring in December 2021 |
| - | 6.0 | ||||
Expiring in June 2023 |
| 19.0 | 19.0 | ||||
Expiring in December 2023 |
| 8.0 | 19.0 | ||||
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| ||||||
| 27.0 | 44.0 | |||||
The facilities are floating rate and incur non-utilisation fees at market rates. | |||||||
10. | COMMITMENTS |
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Capital commitments at 31 March 2022 contracted for but not provided were £6.9m (2021: £2.2m).
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11. | ULTIMATE PARENT COMPANY AND CONTROLLING PARTY |
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| The immediate parent company for this entity is Bristol Water Core Holdings Limited ("BWCH"), a company incorporated in England and Wales.
As at 31 March 2021, the Directors considered the ultimate parent and controlling party of the Company to be iCON Infrastructure Partners III, L.P acting through its Managing General Partner, iCON Infrastructure Management III Limited.
On 3 June 2021 Pennon Group plc acquired the entire shareholding of Bristol Water Holdings UK Limited ("BWHUK") the Company's intermediate parent company, and its subsidiaries. As a result of the acquisition of BWHUK, Pennon Group plc became the ultimate parent and controlling party of the Company.
The smallest and largest group in which the Company is consolidated is Pennon Group plc which is registered in England and copies of its consolidated interim report are available from Peninsula House, Rydon Lane, Exeter, Devon, England, EX2 7HR.
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12. | RELATED PARTY TRANSACTIONS
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Throughout the year, related parties include members and joint ventures of the Bristol Water Group Limited group of companies (until 2 June 2021); members of the Pennon Water plc group of companies (from 3 June 2021); members of the iCON Infrastructure LLP group of companies (until 2 June 2021); members of Itochu Corporation (until 2 June 2021), and key management personnel.
The principal related parties are: | ||
Pennon Group plc ("PG"), registered in England and Wales, whose year end is 31 March, and is the Company's ultimate UK holding company.
BWHUK, registered in England and Wales, whose year end is 31 March.
BWCH, the Company's immediate parent, registered in England and Wales, whose year end is 31 March.
Bristol Wessex Billing Services Limited ("BWBSL"), registered in England and Wales, whose year-end is 31 March. The joint venture interest is held by Bristol Water Holdings Limited, an intermediate holding company within the BWHUK group of companies, which owns 100 class 'B' shares in the company, representing a holding of 50% of the voting and equity rights of the company. BWBSL is a joint venture undertaking between Bristol Water Holdings Limited and Wessex Water Services Limited, and provides meter reading, billing, debt recovery and customer contact management services to this Company and Wessex Water Services Limited, under a cost sharing arrangement.
Water 2 Business Limited ("W2B"), registered in England and Wales, whose year-end is 30 June. The interest is held by BWH Limited, an intermediate holding company, which owns 30 class 'B' shares in the company representing a holding of 30% of equity rights and 40% of voting rights of the company. W2B has a retail water and sewerage supply licence and provides retail water services to non-household customers.
Pennon Water Services Limited ("PWS"), registered in England and Wales, whose year-end is 31 March. The interest is held by PG, the ultimate parent company, which owns 80% of PWS. On 3 June 2021, following the acquisition by Pennon Group plc, PWS became a related party of the Company. PWS has a retail water and sewerage supply licence and provides retail water services to non-household customers.
Bristol Water Group Limited ("BWG"), registered in England and Wales, whose year end is 31 March, and until 2 June 2021 was the Company's ultimate UK holding company. Following the acquisition by Pennon Group plc, BWG ceased to be a related party of the Company on 2 June 2021. | ||
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12. | RELATED PARTY TRANSACTIONS (continued)
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| Trading transactions During the year the Company entered into trading transactions with related parties totalling:
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| Sales of goods and services |
| Purchases of goods and services | |||||||
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| 2022 | 2021 |
| 2022 | 2021 | |||||
|
| £m | £m |
| £m | £m | |||||
| Joint ventures and associates of the Pennon Group plc group |
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| BWBSL |
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| |||||||
| - management charges | - | - |
| 2.8 | 2.8 | |||||
| - capital expenditure | - | - |
| 0.2 | 0.2 | |||||
| - other recharges | - | - |
| 0.1 | 0.1 | |||||
| W2B |
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| |||||||
| - non-household supply of water | 16.7 | 17.1 |
| - | - | |||||
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| PWS |
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| - non-household supply of water | 0.6 | - |
| - | - | |||||
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| |||||||
| 17.3 | 17.1 |
| 3.1 | 3.1 | ||||||
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| The amounts above relating to PWS are for the period 3 June 2021, when PWS became a related party of the Company, to 21 March 2022. | ||||||||||
Non trading transactions | |||||||||||
During the year BW received £1.6m (2021: £nil) from BWG for employee services to BWG. At the year end the balance was zero. | |||||||||||
At the year end the balances held with related parties were: | |||||||||||
|
| Amounts due from | Amounts due to | ||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||
| £m | £m | £m | £m | |||||||
| Joint ventures and associates of the Bristol Water Group Limited group |
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| ||||||||
| BWBSL | 0.9 | 1.0 | 1.4 | 1.4 | ||||||
| W2B | 1.4 | 1.2 | 0.3 | - | ||||||
| PWS | - | - | - | - | ||||||
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| 2.3 | 2.2 | 1.7 | 1.4 | |||||||
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| The amounts outstanding are unsecured and will be settled in cash. As a retailer in the non-household market, W2B and PWS supply collateral under the market codes, no guarantees have been given or received. No provisions have been made, or are considered necessary, for doubtful debts in respect of the amounts due from related parties. | ||||||||||
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13. | Circulation
This unaudited announcement is available on the Bristol Water web site: http://www.bristolwater.co.uk. Paper copies are also available from the Company's registered office at Bridgwater Road, Bristol, BS13 7AT. | ||||||||||