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water
Limited contracts Other Total
�m �m �m �m
Year ended 31 March 2010
Segment profit on ordinary activities before interest 268.9 10.2 (3.3) 275.8
Net finance costs (106.5)
Share of profit from jointly controlled entities 0.9
Profit on ordinary activities before taxation 170.2
Taxation (47.3)
Profit for the year from continuing operations 122.9
Year ended 31 March 2009
Segment profit on ordinary activities before interest 266.9 9.1 (2.4) 273.6
Net finance costs (121.7)
Share of profit from jointly controlled entities 0.8
Profit on ordinary activities before taxation 152.7
Taxation (164.6)
Loss for the year from continuing operations (11.9)
3. Finance costs payable/(income receivable)
Year to Year to
31.3.2010 31.3.2009
�m �m
Finance costs payable on debentures, bank and other loans and overdrafts 114.7 122.8
Amortisation of discount, fees, loan issue costs and other financing items (4.5) (4.9)
Accretion on index linked bonds (6.6) 22.4
Interest cost on pension plan obligations 36.1 38.5
Finance costs payable on hire purchase contracts and finance leases 4.0 4.7
Total finance costs payable 143.7 183.5
Expected return on pension plan assets (31.6) (44.3)
Finance income receivable (5.6) (17.5)
Net finance costs payable 106.5 121.7
4. Taxation
Tax on profit on ordinary activities
Year to Year to
31.3.2010 31.3.2009
�m �m
Current tax:
Current income tax charge at 28% 38.9 33.0
Income tax reported in equity on cash flow hedges - 0.1
Adjustment in respect of prior periods (1.3) (1.1)
UK corporation tax 37.6 32.0
Overseas tax 0.2 0.1
Total current tax 37.8 32.1
Deferred tax:
Origination and reversal of temporary differences in the year at 28% 9.2 13.8
Effect of changes in tax rates and laws:
- Impact of Industrial Buildings Allowances abolition - 117.2
Income tax reported in equity on cash flow hedges - (0.1)
Adjustment in respect of prior periods 0.3 1.6
Total deferred tax 9.5 132.5
Tax charge in the income statement 47.3 164.6
5. Earnings per share
Basic earnings per share (EPS) is calculated by dividing the profit/(loss) attributable to ordinary equity holders of the
parent Company by the weighted average number of ordinary shares in issue during the year. Treasury shares held are
excluded from the weighted average number of shares for basic EPS.
Profit Weighted average number of shares Profit per share Loss Weighted average number of shares Loss per share
31.3.2010 31.3.2010 31.3.2010 31.3.2009 31.3.2009 31.3.2009
�m million pence �m million pence
Basic EPS 122.5 517.6 23.67 (12.7) 518.0 (2.45)
The weighted average number of shares for diluted EPS is calculated by including the treasury shares held.
Profit Weighted average number of shares Profit per share Loss Weighted average number of shares Loss per share
31.3.2010 31.3.2010 31.3.2010 31.3.2009 31.3.2009 31.3.2009
�m million pence �m million pence
Diluted EPS 122.5 518.6 23.62 (12.7) 518.6 (2.45)
Adjusted EPS is considered by the directors to give a better indication of the Group's underlying performance due to the
volatile and non-cash nature of deferred tax. From 2009/10, the Group has not adjusted for the credit in respect of the
amortisation of debt fair value as this is no longer considered material and has now reached a stable level. The credit
for the year ended 31 March 2010 is �5.3m (2009: �5.6m) and would have an impact on the adjusted EPS of 1.02 pence per
share (2009: 1.08 pence per share).
Earnings Weighted average number of shares Earnings per share (Loss)/ earnings Weighted average number of shares (Loss)/ earnings per share
31.3.2010 31.3.2010 31.3.2010 31.3.2009 31.3.2009 31.3.2009
�m million pence �m million pence
Basic EPS 122.5 517.6 23.67 (12.7) 518.0 (2.45)
Deferred tax 9.5 1.84 132.5 25.58
Amortisation of debt fair value - - (5.6) (1.08)
Adjusted EPS 132.0 517.6 25.51 114.2 518.0 22.05
6. Dividends paid and proposed
Year to Year to
31.3.2010 31.3.2009
�m �m
Declared and paid during the year:
Equity dividends on ordinary shares:
Final dividend for 2008/09: 8.50 pence (2007/08: 8.07 pence) 44.0 41.8
Interim dividend for 2009/10: 4.39 pence (2008/09: 4.29 pence) 22.7 22.2
Dividends paid 66.7 64.0
Proposed for approval by shareholders at the AGM
Final dividend for 2009/10: 8.85 pence (2008/09: 8.50 pence) 45.8 44.0
7. Cash and cash equivalents and short term deposits
For the purposes of the consolidated cash flow statement, cash and cash equivalents comprise the following at 31 March:
31.3.2010 31.3.2009
�m �m
Cash at bank and in hand 66.1 40.0
Short term deposits 108.7 68.8
174.8 108.8
Bank overdrafts (1.5) (16.5)
Cash and cash equivalents 173.3 92.3
31.3.2010 31.3.2009
�m �m
Short term cash deposits > 3 months 1.1 120.8
Short term cash deposits < 3 months 14.7 39.8
Short term cash deposits 15.8 160.6
Short term cash deposits of �14.7 million (2009: �39.8 million), with a maturity of less than three months, represent
amounts on deposit at fixed rates with the Northumbrian Water Pension Scheme.
This information is provided by RNS
The company news service from the London Stock Exchange