Nthn.elec.prf Regulatory News (NTEA)

21 Apr 2008 16:25

Northern Electric PLC21 April 2008 NORTHERN ELECTRIC plc ANNOUNCEMENT 21 APRIL 2008 PRELIMINARY STATEMENT OF ANNUAL RESULTS AND DIVIDENDS FOR YEAR ENDED 31 DECEMBER2007 The financial information set out below does not constitute the Group andCompany's statutory accounts for the years ended 31 December 2007 and 31December 2006. Statutory accounts for the year ended 31 December 2006 have beendelivered to the Registrar of Companies and those for the year ended 31 December2007 will be delivered to the Registrar of Companies by 31 July 2008. TheGroup's auditors have reported on the accounts for the year ended 31 December2007. Their report was unqualified and did not contain statements under Section237(2) or (3) of the Companies Act 1985. This announcement has been prepared on the basis of accounting policies set outin the Annual Report and Accounts for the year ended 31 December 2006. Whilst the financial information included in this announcement has been computedin accordance with International Financial Reporting Standards (IFRSs), thisannouncement does not itself contain sufficient information to comply withIFRSs. Principal Activities & Business Review Northern Electric plc (the "Company") is a subsidiary of CE Electric UK FundingCompany and its principal activity during the year was to act as a holdingcompany. The activities of the Company's principal subsidiaries during the year were thedistribution of electricity by Northern Electric Distribution Limited (NEDL) andthe provision of engineering contracting services by Integrated Utility ServicesLimited (IUS). NEDL serves an area of approximately 14,400 sq km in the north east of Englandwith a resident population of 3.2 million, receives electricity from theNational Grid transmission system and distributes it to the 1.6 millioncustomers connected to its electricity distribution network of transformers,switchgear and overhead and underground cables, at voltages of up to 132kV. NEDLis an authorised distributor under the Electricity Act 1989 and holds anelectricity distribution licence granted by the Secretary of State. During the year, NEDL invested £125.8m in its electricity distribution systemfor the replacement of assets and continuing network improvements intended toincrease the quality of the electricity supply provided to its customers. IUS provided engineering contracting services to a range of clients during theyear, including E-on (formerly Central Networks), Network Rail, NorthumbrianWater and Yorkshire Water, continued to develop its contract with E-on andexpanded its activities in the provision of a "Multi Utility" service to housebuilders throughout the North East and Yorkshire, operating as an independentconnections provider. A contract to deliver contestable connections on behalfof Scottish Water commenced during the year and has created the opportunity todevelop further business within southern Scotland. The UK contracting element ofthe business is expanding across the United Kingdom with an increase in contractawards for delivery in 2008. IUS will also be developing its services to therail market with particular focus in the south of England. Profit before tax at £109.0m was £3.3m lower than the previous year. Highermargins (£15.3m) due to distribution tariff increases implemented during theyear and additional gains (£0.5m) were offset by higher depreciation andamortisation charges (£6.0m) reflecting the reduction in asset lives, highermaintenance costs (£2.6m), other operating cost increases (£6.7m) and higher netfinance costs (£3.8m). No ordinary dividends were paid during the year and the directors recommend thatno final dividend is paid in respect of the year. Net debt at 31 December 2007 was £192.1m which represented an increase of £10.0mduring the year. Enquiries Enquiries should be made to John Elliott, Company Secretary, on 0191 2235103. NORTHERN ELECTRIC plc ANNUAL RESULTS - YEAR ENDED 31 DECEMBER 2007 GROUP INCOME STATEMENT 2007 2006 £m £m Revenue 282.0 280.3Cost of sales (64.3) (77.9) Gross profit 217.7 202.4 Distribution costs (64.4) (54.2)Administrative expenses (22.1) (17.0) Operating profit 131.2 131.2 Share of profit after tax of joint venture accounted for usingthe equity method 0.4 0.4Other gains/(losses) 0.2 (0.3)Investment income 14.9 16.2Finance costs (37.7) (35.2) Profit before tax 109.0 112.3 Income tax expense (23.0) (35.9) Profit from ordinary activities after tax attributed to equityshareholders of the Company 86.0 76.4 All activities relate to continuing operations. STATEMENT OF RECOGNISED INCOME AND EXPENSE FOR THE YEAR ENDED 31 DECEMBER 2007 There is no other income or expense for the Group for 2007 and 2006 other thanthe profits reported above. MOVEMENT ON RESERVES AND RECONCILIATION OF TOTAL EQUITY Share Capital Share Premium Redemption Retained Total Capital Account Reserve Earnings Equity £m £m £m £m £m Total equity at 31 December2006 72.2 158.8 6.2 176.4 413.6 Profit for the year - - - 86.0 86.0 Total equity at 31 December2007 72.2 158.8 6.2 262.4 499.6 NORTHERN ELECTRIC plc ANNUAL RESULTS - YEAR ENDED 31 DECEMBER 2007 GROUP BALANCE SHEET 2007 2006 £m £mNon-current assets Property, plant and equipment 1,181.3 1,092.1Intangibles 6.5 6.0Investments in joint venture 3.2 3.2Investments in other companies 0.1 0.1Retirement benefit asset 44.7 4.8Trade and other receivables 4.7 4.6 1,240.5 1,110.8 Current assetsInventories 21.7 17.2Trade and other receivables 59.5 55.6Short-term securities - 100.0Cash and cash equivalents 176.8 79.1 258.0 251.9 Total assets 1,498.5 1,362.7 Current liabilitiesTrade and other payables (83.1) (66.4)Current income tax liabilities (16.1) (12.6)Deferred revenue (10.2) (9.4)Borrowings (21.9) (114.3)Provisions (3.2) (3.7) (134.5) (206.4) Net current assets 123.5 45.5 Non-current liabilitiesBorrowings (347.0) (246.9)Deferred income tax liabilities (164.1) (166.3)Retirement benefit obligations (1.4) (1.3)Deferred revenue (350.7) (327.3)Provisions (1.2) (0.9) (864.4) (742.7) Total liabilities (998.9) (949.1) Net assets 499.6 413.6 EQUITYShare capital 72.2 72.2Share premium 158.8 158.8Retained earnings 262.4 176.4Other reserves 6.2 6.2 Total equity 499.6 413.6 NORTHERN ELECTRIC plc ANNUAL RESULTS - YEAR ENDED 31 DECEMBER 2007 STATEMENT OF CASH FLOWS 2007 2006 £m £m Net cash from operating activities 67.0 77.7 Investing activitiesDividends received from joint venture 0.4 0.6Payments from disposal of business unit/subsidiary - (6.7)Sale of long-term securities 100.0 -Proceeds from disposal of property, plant and equipment 0.8 0.6Purchases of property, plant and equipment (117.9) (114.4)Purchases of intangible assets (2.0) (3.3)Receipt of customer contributions 41.8 33.2 Net cash from/(used in) investing activities 23.1 (90.0) Financing activitiesEquity dividends paid - (50.0)Movement in borrowings from parent/subsidiaryundertaking (3.4) 0.9Repayment of borrowings - (6.0)New borrowings raised 11.0 - Net cash from/(used in) financing activities 7.6 (55.1) Net increase/(decrease) in cash and cash equivalents 97.7 (67.4) Cash and cash equivalents at beginning of year 79.1 146.5 Cash and cash equivalents at end of year 176.8 79.1 This information is provided by RNS The company news service from the London Stock Exchange