REG - NorthumbrianWaterGrp - Final Results - Part 2

Released: 02/06/2010
- Part 2: For the preceeding part double click [ID:nRSB9039Ma]
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
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