TIDMBD49
RNS Number : 9941H
Electricity North West Limited
29 November 2022
Electricity North West Limited (the "Company") is pleased to
announce its Half Year Financial Report for the period ended 30
September 2022.
The Half Year Report is available to view on the Company's
website:
https://www.enwl.co.uk/about-us/financial-investor-relations/financial-reports/
For further information please contact Electricity North West's
press office on 0844 209 1957 or email pressoffice@enwl.co.uk .
Company Registration No. 02366949
ELECTRICITY NORTH WEST LIMITED
Half Year Condensed Consolidated Financial Statements
for the period ended 30 September 2022
Contents
Interim Management
Report.........................................................................................................
1
Condensed Consolidated Statement of Comprehensive
Income..................................................... 5
Condensed Consolidated S tatement of Financial
Position...............................................................
6
Condensed Consolidated Statement of Changes in
Equity..............................................................
7
Condensed Consolidated Statement of Cash
Flows........................................................................
8
Notes to the Condensed Consolidated Financial
Statements...........................................................
9
Interim Management Report
Cautionary statement
This interim management report contains certain forward-looking
statements with respect to the consolidated financial condition and
business of Electricity North West Limited ("ENWL" or "the
Company") and its subsidiaries (together referred to as "the
Group"). Statements or forecasts relating to events in the future
necessarily involve risk and uncertainty and are made by the
Directors in good faith based on the information available at the
date of signature of this report, with no obligation to update
these forward-looking statements. Nothing in this unaudited interim
management report should be construed as a profit forecast nor
should past performance be relied upon as a guide to future
performance.
Financial statements
The Annual Report and Consolidated Financial Statements of the
Company can be found at www.enwl.co.uk.
Operations
The Group's principal activity is the operation and maintenance
of electricity distribution assets owned by ENWL. The distribution
of electricity is regulated by the terms of ENWL's Electricity
Distribution Licence granted under the Electricity Act 1989 and
monitored by the Gas and Electricity Markets Authority.
There have been no significant changes to the activity of the
Company in the current period.
Consolidated results
6 months 6 months Year
ended ended ended
30 Sep 30 Sep 31 Mar
2022 2021 2022
------------------ ---------- ---------- ----------
Revenue GBP246m GBP216m GBP473m
Profit before GBP18m GBP47m GBP103m
tax and fair
value movements
Net cash flow GBP13m GBP(1)m GBP41m
before financing
activities
Net debt GBP1,281m GBP1,173m GBP1,227m
------------------ ---------- ---------- ----------
Revenue
Revenue was GBP30m higher in the six months to 30 September 2022
compared to the same period in the prior year. The primary factor
driving the increase is the increase in DUoS (Distribution Use of
System) revenues as a result of the higher allowed revenue set by
Ofgem including the impact of inflation and adjustments from under
recoveries in previous years.
The allowed revenue is recovered against an estimated level of
electricity demand across the network. Given the difficulty of
predicting this demand each year we end up with either an over or
an under recovery against planned revenue. These over or under
recoveries are reflected in the Consolidated Income Statement for
the period and will be corrected in future periods through the
Ofgem price setting mechanism.
The revenue for the six months to 31 March 2023 is expected to
be higher than that in the six months to 30 September 2022, due to
the seasonally higher volumes of electricity units distributed over
the winter period.
Interim Management Report (continued)
Profit before tax and fair value movements
The profit before tax and fair value movements was GBP29m lower
than the same period in the prior year. This is due to the net
effect of the GBP30m higher revenue, GBP20m higher operating costs
and GBP39m higher interest expense (see Note 6).
Of the GBP39m higher interest expense, GBP20m relates to an
accretion payment in the period and GBP18m relates to higher
indexation due to the increase in RPI.
The primary driver for the increase in operating costs was also
the increase in RPI.
Net cash flow before financing activities
There was a net cash inflow before financing activities of
GBP13m in the six-months to 30 September 2022, compared to a net
cash outflow of GBP1m in the same period in the prior year. The
increased cash generation was primarily due to GBP19m higher cash
from operations plus GBP5m lower tax payments, net of GBP10m higher
net capex.
Net Debt
Net debt increased by GBP54m over the six-months to 30 September
2022. This is primarily due to a GBP26m increase in the
index-linked debt arising from RPI increases (Note 6), and a lower
cash balance, resulting from the GBP20m accretion payment and
GBP23m dividend payment, net of the GBP13m cash inflow before
financing activities.
Dividends
Dividends of GBP23m were declared for the year ended 31 March
2022 and have been paid in the period. More details on dividends
are given in Note 8. The Directors do not propose an interim
dividend for the year ended 31 March 2023.
Retirement benefit scheme
The retirement benefit surplus over the six-month period to 30
September 2022, has increased from GBP18m to GBP97m. The main
reason for the increase was primarily the increase in the discount
rate assumption by 240 basis points driven by the market movement
in corporate bond yields and a 10 basis points decrease in expected
future inflation. This was partially offset by a reduction in the
value of the Scheme's assets as a result of the market events as
described above (see Note 13).
Principal risks and uncertainties
The principal trade and activities of the Group are carried out
in ENWL and a comprehensive review of the strategy and operating
model, the regulatory environment, the resources and principal
risks and uncertainties facing the Company, and ultimately the
Group, are outlined in the Strategic Report of the ENWL Annual
Report and Consolidated Financial Statements for the year ended 31
March 2022, which are available on the website, www.enwl.co.uk.
An assessment of the change in risk has been carried out and the
principal risks are deemed comparable to those at the last annual
report.
Interim Management Report (continued)
Going concern
When considering whether to continue to adopt the going concern
basis in preparing these condensed financial statements, the
Directors have taken into account a number of factors, including
the following:
-- The Company's electricity distribution licence includes the
obligation in standard licence condition 40 to maintain an
investment grade issuer credit rating, which has been met;
-- Under section 3A of the Electricity Act 1989, the Gas and
Electricity Markets Authority has a duty, in carrying out its
functions, to have regard to the need to secure that licence
holders are able to finance their activities, which are the subject
of obligations imposed by or under Part 1 of the Electricity Act
1989 or the Utilities Act 2000;
-- Management has prepared, and the Directors have reviewed, the
approved Group budgets for the year ending 31 March 2023. These
budgets include projections and cash flow forecasts, including
covenant compliance considerations. Inherent in forecasting is an
element of uncertainty and key sensitivities are considered when
budgets are approved, including possible changes in RPI and
over/under recoveries of allowed revenue;
-- Management have prepared forecasts covering the next
regulatory period to 31 March 2028, based on the business plan
submission for RIIO-ED2 and considering the draft determination.
Forecasts demonstrate that there is sufficient headroom on key
covenants and that there are sufficient resources available to the
Group within the forecast period;
--
Short-term liquidity requirements are forecast to be met from
the Group's operating cash flow and short-term deposit balances. A
further GBP13m of committed undrawn bank facilities are available
from lenders; these have a maturity of more than one year; and
-- Whilst the utilisation of these facilities is subject to
gearing covenant restrictions, projections to 31 March 2023 and
2028 indicate there is significant headroom on these covenants.
The Board has given detailed consideration to the principal
risks and uncertainties affecting the Group and Company, as
referred to above, and all other known factors which could impact
on the Group and the Company's ability to remain a going
concern.
After making appropriate enquiries, the Directors have a
reasonable expectation that the Company and Group have adequate
resources to continue in operational existence for the foreseeable
future. Accordingly, they continue to adopt the going concern basis
in preparing the Half Year Condensed Consolidated Financial
Statements.
The going concern basis has been adopted by the Directors, with
consideration of the guidance published by the Financial Reporting
Council.
Corporate governance
The NWEN (Jersey) group has established a governance framework
for monitoring and overseeing strategy, conduct of business
standards and operations of the entire business.
The details of the internal control and risk management systems
which govern the Company in relation to the financial processes are
outlined in the Corporate Governance Report of the ENWL Annual
Report and Consolidated Financial Statements, which are available
on the website www.enwl.co.uk.
Interim Management Report (continued)
Ultimate parent undertaking and controlling party
The immediate parent undertaking is North West Electricity
Networks plc ("NWEN plc"), a company incorporated and registered in
the United Kingdom. The ultimate parent undertaking is North West
Electricity Networks (Jersey) Limited ("NWEN (Jersey"), a company
incorporated and registered in Jersey.
The ownership of the shares in NWEN (Jersey) and, therefore, the
ultimate controlling parties of the Company:
-- KDM Power Limited (40.0%);
-- Equitix ENW 6 Limited (25.0%);
-- Equitix MA North HoldCo Limited (15.0%); and
-- Swingford Holdings Corporation Limited (20.0%).
Directors
The Directors who held office during the period are given below.
Directors served for the whole six-months, and to the date of this
report, except where otherwise indicated.
Executive Directors
-- I Smyth (appointed 5 September 2022)
-- D Brocksom
-- P Emery (resigned 4 September 2022)
Non-executive Directors
-- A Baldock
-- A Buchanan
-- S Cooklin
-- R Holden
-- S Jones
-- P O'Flaherty
-- G Pan
-- T Tanaka
-- M Yamada (appointed 7 July 2022)
-- S Sumitomo (resigned 7 July 2022)
S Jones, P O'Flaherty, G Pan, T Tanaka, M Yamada and S Sumitomo
are shareholder appointed directors and have appointed alternate
directors during their time as Board members.
Alternate Directors
-- S Jones - A Bhuwania
-- P O'Flaherty - A Bhuwania
-- G Pan - H Yu
-- T Tanaka - K Fukushima (resigned 7 July 2022)/ T Tamura
(appointed 7 July 2022)
-- M Yamada - M Murata (appointed 28 July 2022)
-- S Sumitomo - F Kumura (resigned 7 July 2022)
Responsibility statement
We confirm that to the best of our knowledge:
-- the condensed set of consolidated financial statements, which
has been prepared in accordance with the applicable set of
accounting standards, gives a true and fair view of the assets,
liabilities, financial position and profit or loss of the issuer,
and the undertakings included in the consolidation as a whole as
required by DTR 4.2.4R;
-- the interim management report includes a fair review of the
information required by DTR 4.2.7R; and
-- the condensed set of consolidated financial statements has
been prepared in accordance with IAS 34 'Interim Financial
Reporting'.
Registered address
Electricity North West Limited
Borron Street
Stockport
Cheshire
SK1 2JD
Approved by the Board of Directors and signed on its behalf:
D Brocksom
Chief Financial Officer
29 November 2022
Consolidated and Company Statement of Profit or Loss and Other
Comprehensive Income
For the period ended 30 September 2022
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
Note 30 Sept 2021 GBPm
2022 GBPm
GBPm
============================================= ====== ========= ============= ============
Revenue 4 245.7 216.2 472.8
============================================= ====== ========= ============= ============
Employee costs (33.4) (24.6) (60.9)
Depreciation and amortisation expense (69.1) (62.9) (132.7)
Other operating costs (50.6) (46.4) (103.6)
============================================= ====== ========= ============= ============
Total operating expenses (153.1) (133.9) (297.2)
============================================= ====== ========= ============= ============
Operating profit 92.6 82.3 175.6
Investment income 5 0.1 0.3 0.4
Finance expense (net) 6 97.2 (95.3) (150.0)
============================================= ====== ========= ============= ============
Profit/(loss) before taxation 189.9 (12.7) 26.0
Taxation 7 (51.3) (46.2) (59.1)
============================================= ====== ========= ============= ============
Profit/(loss) for the year attributable
to equity shareholders of the Company 138.6 (58.9) (33.1)
Other comprehensive income/(expense):
Items that will not be reclassified
subsequently to profit or loss:
Remeasurement of net defined benefit
scheme 71.1 9.9 68.8
Deferred tax on remeasurement of
defined benefit scheme (17.8) (2.5) (17.2)
Adjustment of brought forward deferred
tax on remeasurement of defined
benefit scheme due to change in
future tax rates - 12.9 12.0
Other comprehensive income/(expense)
for the period 53.3 20.3 64.5
============================================= ====== ========= ============= ============
Total comprehensive income/(expense)
for the period attributable to shareholders 191.9 (38.6) 31.4
============================================= ====== ========= ============= ============
All the results for the current and prior periods are derived
from continuing operations.
Condensed Consolidated Statement of Financial Position
As at 30 September 2022 *Restated
Unaudited Unaudited Audited
Period Period ended Year ended
ASSETS ended 30 Sept 31 Mar 2022
Note 30 Sept 2021 GBPm
2022 GBPm
GBPm
================================= ====== =========== ============= =============
Non-current assets
Intangible assets and goodwill 56.8 60.9 58.9
Property, plant and equipment 9 3,560.8 3,463.4 3,512.1
Inter-company derivative asset 12 284.2 404.0 408.8
Retirement benefit surplus 13 96.7 - 18.4
3,998.5 3,928.3 3,998.2
================================= ====== =========== ============= =============
Current assets
Inventories 20.8 15.2 18.1
Trade and other receivables 100.7 73.6 80.0
Current tax asset 3.0 - -
Cash and cash equivalents 61.9 101.5 59.4
186.4 190.3 157.5
================================= ====== =========== ============= =============
Total assets 4,184.9 4,118.6 4,155.7
================================= ====== =========== ============= =============
LIABILITIES
Current liabilities
Trade and other payables (191.7) (145.7) (164.2)
Borrowings 10 (9.9) (8.9) (93.2)
Current tax liabilities - (1.5) (6.2)
Provisions 14 (0.6) - (0.6)
(202.2) (156.1) (264.2)
================================= ====== =========== ============= =============
Net current (liabilities)/assets (15.8) 34.2 (106.7)
Non-current liabilities
Borrowings 10 (1,332.6) (1,265.2) (1,192.9)
Derivative liabilities 12 (663.4) (938.5) (960.2)
Retirement benefit deficit 13 - (41.0) -
Deferred tax (254.8) (164.0) (187.3)
Customer contributions (697.8) (676.8) (686.5)
Provisions 14 (1.0) (1.6) (1.0)
(2,949.6) (3,087.1) (3,027.3)
================================= ====== =========== ============= =============
Total liabilities (3,151.8) (3,243.2) (3,291/5)
================================= ====== =========== ============= =============
Total net assets 1,033.1 875.4 864.2
================================= ====== =========== ============= =============
EQUITY
Called up share capital 238.4 238.4 238.4
Share premium account 4.4 4.4 4.4
Revaluation reserve 73.1 75.1 74.1
Capital redemption reserve 8.6 8.6 8.6
Retained earnings 708.6 548.9 538.7
================================= ====== =========== ============= =============
Total equity 1,033.1 875.4 864.2
================================= ====== =========== ============= =============
*The comparative information has been restated; for more details
see Note 2.
Approved by the Board of Directors on 29 November 2022 and
signed on its behalf by:
D Brocksom
Director
Condensed Consolidated Statement of Changes in Equity
For the period ended 30 September 2022
Called Share Capital
up share premium Revaluation redemption Retained Total
capital account reserve reserve earnings equity
GBPm GBPm GBPm GBPm GBPm GBPm
===================================== ========== ========= ============ ============ ========== ========
At 31 March 2021 (audited) 238.4 4.4 81.9 8.6 596.6 929.9
Loss for the period - - - - (58.9) (58.9)
Other comprehensive expense for
the period - - - - 20.3 20.3
Transfer from revaluation reserve - - (6.8) - 6.8 -
Total comprehensive expense for
the period - - - - (31.8) (38.6)
===================================== ========== ========= ============ ============ ========== ========
Equity dividends (Note 8) - - - (15.9) (15.9)
===================================== ========== ========= ============ ============ ========== ========
At 30 September 2021 (unaudited) 238.4 4.4 75.1 8.6 548.9 875.4
===================================== ========== ========= ============ ============ ========== ========
At 31 March 2021 (audited) 238.4 4.4 81.9 8.6 596.6 929.9
Loss for the year - - - - (33.1) (33.1)
Other comprehensive income for
the year - - - - 64.5 64.5
Transfer from revaluation reserve - - (7.8) - 7.8 -
Total comprehensive income/(expense)
for the year - - (7.8) - 39.2 31.4
===================================== ========== ========= ============ ============ ========== ========
Equity dividends (Note 8) - - - - (97.1) (97.1)
===================================== ========== ========= ============ ============ ========== ========
At 31 March 2022 (audited) 238.4 4.4 74.1 8.6 538.7 864.2
===================================== ========== ========= ============ ============ ========== ========
Profit for the period - - - - 138.6 138.6
Other comprehensive income for
the period - - - - 53.3 53.3
Transfer from revaluation reserve - - (1.0) - 1.0 -
Total comprehensive income/(expense)
for the period - - (1.0) - 192.9 191.9
===================================== ========== ========= ============ ============ ========== ========
Equity dividends (Note 8) - - - (23.0) (23.0)
===================================== ========== ========= ============ ============ ========== ========
At 30 September 2022 (unaudited) 238.4 4.4 73.1 8.6 708.6 1,033.1
===================================== ========== ========= ============ ============ ========== ========
Condensed Consolidated Statement of Cash Flows
For the period ended 30 September 2022
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
Note 30 Sept 2021 GBPm
2022 GBPm
GBPm
======================================= ====== ========= ============= ============
Operating activities
Cash generated from operations 16 119.8 100.5 266.2
Interest paid (14.5) (13.7) (54.1)
Interest portion of lease liabilities - (0.2)
Tax paid (10.3) (15.1) (15.2)
--------------------------------------- ------ --------- ------------- ------------
Net cash generated from operating
activities 95.0 71.7 196.7
Investing activities
Interest received and similar income 0.1 0.4 0.4
Purchase of property, plant and
equipment (106.3) (94.4) (196.5)
Purchase of intangible assets (4.9) (4.1) (12.2)
Customer contributions received 28.7 25.4 51.8
Proceeds from sale of property,
plant and equipment 0.3 0.3 0.5
======================================= ====== ========= ============= ============
Net cash used in investing activities (82.1) (72.4) (156.0)
======================================= ====== ========= ============= ============
Net cash flow before financing
activities 12.9 (0.7) 40.7
Financing activities
Proceeds from external borrowings 37.0 30.0
Repayment of external borrowings (4.1) (3.6) (37.4)
Repayment of lease liabilities (0.7) (0.7) (1.2)
Accretion of index linked swap (20.1) - -
Increase in inter-company loan from
parent 0.5 - 2.0
Decrease in inter-company loan from
group - (200.0) (200.0)
Dividends paid 8 (23.0) (15.9) (97.1)
Net cash used in financing activities (10.4) (220.2) (303.7)
======================================= ====== ========= ============= ============
Net increase/(decrease) in cash and
cash equivalents 2.5 0.9 (263.0)
----------------------------------------------- --------- ------------- ------------
Cash and cash equivalents at beginning
of period 59.4 322.4 322.4
======================================= ====== ========= ============= ============
Cash and cash equivalents at end
of period 61.9 101.5 59.4
======================================= ====== ========= ============= ============
Notes to the Condensed Consolidated Financial Statements
1. General Information
Electricity North West Ltd is a company incorporated in the
United Kingdom, and registered in England and Wales, under the
Companies Act 2006.
The financial information for the six-month period ended 30
September 2022, and similarly the six-month period ended 30
September 2021, has not been audited or reviewed by the auditor.
The financial information for the year ended 31 March 2022 has been
based on information in the audited financial statements for that
year.
The financial information for the year ended 31 March 2022 does
not constitute the statutory financial statements for that year (as
defined in s434 of the Companies Act 2006), but is derived from
those financial statements. Statutory financial statements for 31
March 2022 have been delivered to the Registrar of Companies. The
auditor reported on those financial statements: their report was
unqualified, did not draw attention to any matters by way of
emphasis and did not contain a statement under s498(2) or s498(3)
of the Companies Act 2006.
2. Significant accounting policies
Basis of preparation
The Annual Report and Consolidated Financial Statements have
been prepared in accordance with international accounting standards
in conformity with the requirements of the Companies Act 2006. The
Half Year Condensed Consolidated Financial Statements of the Group
which are unaudited, have been prepared in accordance with
International Accounting Standard 34 'Interim Financial Reporting'
(IAS 34).
The results for the period ended 30 September 2022 have been
prepared using the same method of computation and the same
accounting policies set out in the Annual Report and Consolidated
Financial Statements of ENWL for the year ended 31 March 2022.
Although some of the Group's operations may be affected by
seasonal factors such as general weather conditions, the Directors
do not feel that this has a material effect on the performance of
the Group, beyond the expected impact on revenue outlined on page
1, when comparing the interim results to those expected to be
achieved in the second half of the year.
These condensed financial statements are prepared on the going
concern basis. Further detail on the going concern assessment is
contained in the Interim Management Report.
These condensed financial statements are presented in sterling,
the functional currency of the Company. All values are stated in
million pounds (GBP'm) unless otherwise indicated.
Going concern
The directors have, at the time of approving the financial
statements, a reasonable expectation that the Group has adequate
resources to continue in operational existence for the foreseeable
future. Thus, they continue to adopt the going concern basis of
accounting in preparing the financial statements.
Notes to the Condensed Consolidated Financial Statements
(continued)
Changes in accounting policy
There are no accounting policies or standards adopted for the
six-month period ended 30 September 2022, or for the remainder of
the year to 31 March 2023, that have a significant impact on the
Company.
Prior period restatement
In the year ended 31 March 2022, there has been a presentational
change to the derivative assets and liabilities balances reported
as at 30 September 2021.
There has been a reclassification adjustment to gross up an
inter-company embedded derivative and an inter-company back-to-back
derivative agreement between Electricity North West Limited and ENW
Finance plc. which were previously presented on a net basis. Whilst
in practice the arrangements are net settled, there exists no legal
right to offset.
The comparative information in the statement of financial
position has been restated, recognising an inter-company derivative
asset of GBP404.0m and a corresponding increase to the derivative
liabilities of GBP404.0m, with a net nil impact on total net
assets. This derivative asset of GBP404.0m was offset against a
derivative liability of GBP404.0m.
The comparative fair value movement in the finance expense note
(Note 5) has been restated to show the movement on the
inter-company derivative asset, inter-company derivative liability
and derivative liabilities separately, with a net nil impact on the
total finance expense recognised in the income statement.
3. Critical accounting judgements and key sources of estimation uncertainty
In the application of the Group's accounting policies the
directors are required to make judgements (other than those
involving estimations) that have a significant impact on the
amounts recognised and to make estimates and assumptions about the
carrying amounts of assets and liabilities that are not readily
apparent from other sources. The estimates and associated
assumptions are based on historical experience and other factors
that are considered to be relevant. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects
only that period; or in the period of the revision and future
periods if the revision affects both current and future
periods.
Critical judgements in applying the group's accounting
policies
The following are the critical judgements, apart from those
involving estimations (which are presented separately below), that
the directors have made in applying the Group's accounting policies
and that have the most significant effect on the amounts recognised
in the financial statements.
Notes to the Condensed Consolidated Financial Statements
(continued)
3. Critical accounting judgements and key sources of estimation uncertainty (continued)
Property, Plant and Equipment
The Group recognises infrastructure assets where the
expenditures incurred enhance or increase the capacity of the
network, whereas any expenditure classed as maintenance is expensed
in the period it is incurred. Capital projects often contain a
combination of enhancement and maintenance activity which are not
distinct and, therefore, the allocation of costs between capital
and operating expenditure is inherently judgemental. The costs
capitalised include an allocation of overhead costs, relating to
the proportion of time spent by support function staff, which is
also inherently judgemental.
Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources
of estimation uncertainty that may have a significant risk of
causing a material adjustment to the carrying amounts of assets and
liabilities within the next financial year, are outlined below.
Impairment of tangible and intangible assets (including
goodwill)
Management assesses the recoverability of tangible and
intangible assets on an annual basis. Determining whether any of
those assets are impaired requires an estimation of the value in
use of the asset to the Group. This value in use calculation
requires the Group to estimate the future cash flows expected to
arise from the asset and a suitable discount rate in order to
calculate present value for the asset and compare that to its
carrying value. This concluded that no impairment loss is required
against those assets.
Fair values of derivative financial instruments
In estimating the fair value of derivative financial
instruments, the Group uses market-observable data (Level 1 and 2
inputs) to the extent it is available. Where such data is not
available, certain estimates (Level 3 inputs) regarding inputs to
the valuation are required to be made. Level 3 inputs form a
significant part of the fair value of the financial instruments
held by the Group. Information about the valuation techniques and
inputs used are disclosed in Note 12.
Retirement benefit schemes
The Group's defined benefit obligation is derived using various
assumptions, as disclosed in Note 13. Results can be affected
significantly by the assumptions used, which management decide
based on advice by a firm of actuaries.
Where available, market data is used to value assets, however
for some less liquid assets, up-to-date data is not available,
certain estimates regarding inputs to the valuation are required to
be made, as disclosed in Note 13.
Notes to the Condensed Consolidated Financial Statements
(continued)
4. Operating segments
Predominantly all Group operations arise from electricity
distribution in the North West of England and associated
activities. Only one operating segment is, therefore, regularly
reviewed by the Chief Executive Officer and Executive Leadership
Team.
The geographical origin and destination of revenue is all within
the United Kingdom. In addition, whilst revenue can fluctuate with
weather conditions, revenues are not affected significantly by
seasonal trends.
5. Investment income
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
======================================= ========= ============= ============
Interest receivable on short-term bank
deposits 0.1 0.3 0.4
======================================= ========= ============= ============
6. Finance expense (net)
*Restated
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
============================================== =========== ============= =============
Interest expense:
Interest on group borrowings at amortised
cost (Note 15) 3.2 7.0 10.2
Interest on borrowings at amortised
cost 20.1 20.2 40.6
Net interest settlements on derivatives
at FVTPL 6.4 (0.2) (3.1)
Indexation of index-linked debt 25.8 8.2 25.2
Accretion payable on index linked swap 20.1 - -
Reimbursement of inter-company loan
impairment (0.1) 0.1 0.3
Interest on leases 0.1 0.1 0.2
Net interest cost on pension plan obligations (0.3) 0.6 1.1
Capitalisation of borrowing costs under
IAS 23 (Note 9) (0.3) (0.3) (1.0)
---------------------------------------------- ----------- ------------- -------------
Total interest expense 75.0 35.7 73.5
---------------------------------------------- ----------- ------------- -------------
Fair value movements on financial
instruments:
Fair value loss/(gain) on inter-company
derivative asset (Note 12) 142.3 (36.4) (41.2)
Fair value (gain)/loss on inter-company
derivative liability (Note 12) (142.3) 37.3 42.1
Fair value net (gain)/loss on derivatives
(Note 12) (172.2) 58.7 75.6
============================================== =========== ============= =============
Total fair value movement (Note 12) (172.2) 59.6 76.5
============================================== =========== ============= =============
Total finance expense (net) (97.2) 95.3 150.0
============================================== =========== ============= =============
Notes to the Condensed Consolidated Financial Statements
(continued)
6. Finance expense (net) (continued)
*The comparative fair value movement has been restated to show
the movement on the inter-company derivative asset, inter-company
derivative liability and external derivative liabilities
separately, with a net nil impact on the total fair value movement
and total finance expense recognised in the income statement.
The fair value movements on the derivatives are derived using a
discounted cash flow technique using both market expectations of
future interest rates and future inflation levels, obtained from
Bloomberg, and calibrations to observable market transactions
evidencing fair value; these are Level 2 inputs and Level 3 inputs
under IFRS 13. Note 12 provides more detail on this.
No new derivatives were entered or closed out during the period
(30 Sept 2021: same, 31 Mar 2022: same).
There has been GBP20.1m (30 Sept 2021: GBPnil, 31 Mar 2022:
GBPnil) accretion payments on the index-linked swaps in the year;
these are scheduled five-yearly, seven-yearly and ten-yearly with
the next payment due in July 2023. The amount of accretion accrued
over the year was GBP29.8m (30 Sept 2021: GBP11.5m, 31 Mar 2022:
GBP29.8m), split as follows:
PAYG 5 PAYG 7 PAYG 10 Total
Accumulated Accretion GBPm GBPm GBPm GBPm
====================== ====== ====== ======= =====
1 April 2021 7.8 37.7 14.1 59.6
Accrued in period 7.0 14.2 8.6 29.8
Paid in period - - - -
---------------------- ------ ------ ------- -----
30 September 2021 14.8 51.9 22.7 89.4
---------------------- ------ ------ ------- -----
1 April 2021 7.8 37.7 14.1 59.6
Accrued in year 7.0 14.2 8.6 29.8
Paid in year - - - -
====================== ====== ====== ======= =====
31 March 2022 14.8 51.9 22.7 89.4
Accrued in period 7.0 14.2 8.6 29.8
Paid in period (20.1) - - -
====================== ====== ====== ======= =====
30 September 2022 1.7 66.1 31.3 99.1
====================== ====== ====== ======= =====
Notes to the Condensed Consolidated Financial Statements
(continued)
7. Taxation
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
Group and Company GBPm
======================================= ========= ============= ============
Current tax:
Current period 0.7 7.6 12.3
Adjustments in respect of prior period - - (0.2)
======================================= ========= ============= ============
0.7 7.6 12.5
======================================= ========= ============= ============
Deferred tax:
Current period 50.6 (17.1) 46.4
Adjustments in respect of prior period - - 0.2
Impact of change in future tax rates - 55.7 -
50.6 38.6 46.6
======================================= ========= ============= ============
Tax charge for the period 51.3 46.2 59.1
======================================= ========= ============= ============
Corporation tax is calculated at 19% (30 Sept 2021: 19%, 31 Mar
2022: 19%) of the estimated assessable profit for the period.
The tax charge in future periods will be affected by the
corporation tax rate increase to 25% from 1 April 2023. This was
substantively enacted on 24 May 2022 and confirmed by the
announcement on 14 October 2022.
Deferred tax is calculated using the rate at which it is
expected to reverse. Accordingly, the deferred tax has been
calculated on the basis that it will reverse in future at the 25%
(30 Sept 2021: 19%, 31 Mar 2022: 25%) rate, except where it is
known that it will reverse before 1 April 2023 when the 19% rate
has been used, in all periods reported above.
Notes to the Condensed Consolidated Financial Statements
(continued)
8. Dividends
Amounts recognised as distributions to equity holders in the
year comprise:
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
Group and Company GBPm
======================================== ========= ============= ============
Final dividends for the year ended
31 March 2021 of 3.33 pence per share
(paid June 2021) - 15.9 15.9
Interim dividends for the year ended
31 March 2022 of 17.03 pence per share
(paid December 2021) - - 81.2
Final dividends for the year ended
31 March 2022 of 4.82 pence per share
(paid June 2022) 23.0 - -
Dividends for the period (Note 15) 23.0 15.9 97.1
======================================== ========= ============= ============
The Directors do not propose an interim dividend for the year
ending 31 March 2023.
9. Property, plant and equipment
During the period, the Group spent GBP116.6m (30 Sept 2021:
GBP99.8m, 31 Mar 2022: GBP200.8m) on additions to property, plant
and equipment as part of its capital programme for its operating
network. Included in this figure is capitalised interest of GBP0.3m
(30 Sept 2021: GBP0.3m, 31 Mar 2022: GBP1.0m), in accordance with
IAS 23 (see Note 6).
The Company has recognised incremental right of use assets of
GBP0.2m (30 Sept 2021: GBP4.0m, 31 Mar 2022: GBP0.7), in accordance
with IFRS 16 (see Note 11).
Notes to the Condensed Consolidated Financial Statements
(continued)
10. Borrowings
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
======================================== ========= ============= ============
Current liabilities:
Bank and other term borrowings 8.4 7.4 7.6
Lease liabilities (Note 11) 1.5 1.5 1.4
Amounts owed to group undertaking (Note
15) - - 84.2
======================================== ========= ============= ============
9.9 8.9 93.2
Non-current liabilities:
Bonds 635.8 629.2 632.5
Bank and other term borrowings 311.2 252.3 259.5
Lease liabilities (Note 11) 2.2 2.9 2.3
Amounts owed to parent undertaking
(Note 15) 84.7 82.2 -
Amounts owed to group undertaking (Note
15) 298.7 298.6 298.6
---------------------------------------- --------- ------------- ------------
1,332.6 1,265.2 1,192.9
======================================== --------- ------------- ============
Total borrowings 1,342.5 1,274.1 1,286.1
======================================== ========= ============= ============
As at 30 Sept 2022 the Group had GBP13.0m of unutilised
committed bank facilities (30 Sept 2021: GBP50.0m, 31 Mar 2022:
GBP50.0m).
The Group's debt facilities expire between 2022 and 2046.
Notes to the Condensed Consolidated Financial Statements
(continued)
11. Leases
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm GBPm
2022 GBPm
================================== ========== ============= ============
Lease assets:
Land and buildings 1.8 2.1 2.0
Telecom 0.1 0.1 0.1
Vehicles 1.7 1.8 1.5
---------------------------------- ---------- ------------- ------------
Total assets 3.6 4.0 3.6
---------------------------------- ---------- ------------- ------------
Lease liabilities:
Land and buildings 1.8 2.4 1.9
Telecom 0.1 0.1 0.1
Vehicles 1.8 1.9 1.7
---------------------------------- ---------- ------------- ------------
Total liabilities (Note 10) 3.7 4.4 3.7
================================== ========== ============= ============
The lease liabilities have been discounted at 5% for land and
buildings and telecoms, and 6% for vehicles.
Notes to the Condensed Consolidated Financial Statements
(continued)
12. Financial instruments
Fair values
All of the fair value measurements recognised in the statement
of financial position for the Group and Company occur on a
recurring basis.
Financial instruments that are measured subsequent to initial
recognition at fair value are grouped into Levels 1 to 3 based on
the degree to which the fair value is observable:
-- Level 1 fair value measurements are those derived from quoted
prices (unadjusted) in active markets for identical assets or
liabilities;
-- Level 2 fair value measurements are those derived from inputs
other than quoted prices included within Level 1 that are
observable for the asset or liability, either directly (i.e. as
prices) or indirectly (i.e. derived from prices); and
-- Level 3 fair value measurements are those derived from
valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable
inputs).
Where available, market values have been used to determine fair
values (Level 1 inputs).
Where market values are not available, fair values have been
calculated by discounting future cash flows at prevailing interest
and RPI rates sourced from market data (Level 2 inputs). In
accordance with IFRS 13, an adjustment for non-performance risk has
then been made to give the fair value.
The non-performance risk has been quantified by calculating
either a credit valuation adjustment (CVA) based on the credit risk
profile of the counterparty, or a debit valuation adjustment (DVA)
based on the credit risk profile of the relevant group entity,
using market-available data. A funding valuation adjustment (FVA)
has also been made.
Whilst the majority of the inputs to the CVA, DVA and FVA
calculations meet the criteria for Level 2 inputs, certain inputs
regarding the Group's credit risk are deemed to be Level 3 inputs,
due to the lack of market-available data. The credit risk profile
of the Group has been built using the few market-available data
points, e.g. credit spreads on the listed bonds, and then
extrapolated over the term of the derivatives. It is this
extrapolation that is deemed to be Level 3. The estimation of the
funding cost in the FVA calculation is also a Level 3 input. All
other inputs to both the underlying valuation and the CVA, DVA and
FVA calculations are Level 2 inputs.
For certain derivatives, the Level 3 inputs form an
insignificant part of the fair value and, as such, these
derivatives are disclosed as Level 2. Otherwise, the derivatives
are disclosed as Level 3.
The adjustment for non-performance risk as at 30 Sept 2022 is
GBP108.4m (30 Sept 2021: GBP72.3m, 31 Mar 2022: GBP121.2m), of
which GBP122.6m (30 Sept 2021: GBP51.9m, 31 Mar 2022: GBP120.3m) is
classed as Level 3.
On entering certain derivatives, the valuation technique used
resulted in a fair value loss. As this, however, was neither
evidenced by a quoted price nor based on a valuation technique
using only data from observable markets, this loss on initial
recognition was not recognised. This was supported by the
transaction price of nil. This difference is being recognised in
profit or loss on a straight-line basis over the life of the
derivatives. The aggregate difference yet to be recognised in
profit or loss is GBP48.5m (30 Sept 2021: GBP50.9m, 31 Mar 2022:
GBP49.7m). The movement in the period all relates to the
straight-line release to profit or loss.
Notes to the Condensed Consolidated Financial Statements
(continued)
12. Financial instruments (continued)
Fair values (continued)
The following table shows the sensitivity of the fair values of
derivatives disclosed as Level 3 to the Level 3 inputs, determined
by applying a 10bps shift to the credit curve used to calculate the
DVA.
Unaudited Unaudited Audited
Period ended Period ended Year ended
30 Sept 2022 30 Sept 2021 31 Mar 2022
-10bps +10bps -10bps +10bps -10bps +10bps
GBPm GBPm GBPm GBPm GBPm GBPm
============ ======= ====== ======= ====== ====== ======
Derivatives (4.0) 4.0 (3.6) 4.1 (5.9) 5.6
============ ======= ====== ======= ====== ====== ======
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
========================================= ========= ============= ============
FV of inter-company derivative asset
pre IFRS 13 adjustments 356.1 459.7 487.3
CVA/DVA/FVA adjustments (50.7) (33.2) (56.7)
Day 1 adjustment (21.2) (22.5) (21.8)
========================================= ========= ============= ============
IFRS 13 FV of inter-company derivative
asset 284.2 404.0 408.8
========================================= ========= ============= ============
FV of inter-company derivative liability
pre IFRS 13 adjustments (356.1) (459.7) (487.3)
CVA/DVA/FVA adjustments 50.7 33.2 56.7
Day 1 adjustment 21.2 22.5 21.8
========================================= ========= ============= ============
IFRS 13 FV of inter-company derivative
liability (284.2) (404.0) (408.8)
========================================= ========= ============= ============
FV of derivative liabilities pre IFRS
13 adjustments (536.1) (657.6) (722.3)
CVA/DVA/FVA adjustments 108.4 72.3 121.1
Day 1 adjustment 48.5 50.9 49.7
----------------------------------------- --------- ------------- ------------
IFRS 13 FV of derivative liabilities (379.2) (534.4) (551.4)
========================================= ========= ============= ============
At 30 September 2022, there is no collateral held or posted in
relation to the derivatives (30 Sept 2021: GBPnil, 31 Mar 2022:
GBPnil).
Notes to the Condensed Consolidated Financial Statements
(continued)
12. Financial instruments (continued)
Fair values (continued)
The following table provides an analysis of the Group's
financial instruments that are measured subsequent to initial
recognition at fair value, grouped into Levels 1 to 3 based on the
degree to which the fair value is observable:
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
==================================== ========= ============= ============
Inter-company derivative asset:
Level 1 - - -
Level 2 - - -
Level 3 284.2 404.0 408.8
==================================== ========= ============= ============
284.2 404.0 408.8
==================================== ========= ============= ============
Inter-company derivative liability:
Level 1 - - -
Level 2 - - -
Level 3 (284.2) (404.0) (408.8)
==================================== ========= ============= ============
(284.2) (404.0) (408.8)
==================================== ========= ============= ============
Derivative liabilities:
Level 1 - - -
Level 2 (75.8) (261.7) (34.3)
Level 3 (303.4) (272.7) (517.1)
------------------------------------ --------- ------------- ------------
(379.2) (534.4) (551.4)
==================================== ========= ============= ============
Notes to the Condensed Consolidated Financial Statements
(continued)
12. Financial instruments (continued)
The following table provides a reconciliation of the fair value
amounts disclosed as Level 3.
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
============================================ ========= ============= ============
Opening balance (517.1) (415.0) (415.0)
On new instruments in the period - - -
Transfers from Level 3 into Level 2 15.8 182.6 5.1
Transfers from Level 2 into Level 3 (7.7) (4.6) (35.6)
Total gains or losses in profit or
loss:
On transfers from Level 2 into Level
3 19.4 - 5.5
On instruments carried forward in Level
3 186.2 (35.7) (77.1)
============================================ ========= ============= ============
Closing balance (303.4) (272.7) (517.1)
============================================ ========= ============= ============
The transfers were principally due to a change in the
significance of the unobservable inputs used to derive the Group's
credit curve for the DVA, as described in this section above. Any
transfers between levels are determined and recognised at the end
of the reporting period.
For cash and cash equivalents, trade and other receivables and
trade and other payables the book values approximate to the fair
values because of their short-term nature.
Except as detailed in the following table, the carrying amounts
of financial assets and financial liabilities recorded at amortised
cost in the financial statements are approximately equal to their
fair values. The fair values shown in the table below are derived
from market values and, therefore, meet the Level 1 criteria.
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
=========================================== ========= ============= ============
Carrying value:
Bonds held at amortised cost (Note
10) (635.8) (629.2) (632.5)
Amounts owed to affiliated undertaking
(Note 10) (298.7) (298.6) (298.6)
Fair value:
Bonds held at amortised cost (651.2) (867.7) (812.1)
Amounts owed to affiliated undertaking (214.6) (290.1) (271.3)
=========================================== ========= ============= ============
Notes to the Condensed Consolidated Financial Statements
(continued)
13. Retirement benefit schemes
Defined benefit schemes
The defined benefit surplus/obligation is calculated using the
latest actuarial valuation as at 31 March 2019 and has been
projected forward by an independent actuary to take account of the
requirements of IAS 19 'Employee Benefits' in order to assess the
position at 30 September 2022 for the purpose of these financial
statements. The present value of the defined benefit
surplus/obligation, the related current service cost and the past
service cost were measured using the projected unit credit method.
The defined benefit plan assets have been updated to reflect their
market value as at 30 September 2022. Differences between the
expected return on assets and the actual return on assets have been
recognised as an actuarial gain or loss in the statement of
comprehensive income in accordance with the Group's accounting
policy.
The increase in the defined benefit surplus over the six-month
period to 30 September 2022 to GBP96.7m (30 Sept 2021: GBP41.0m
deficit, 31 Mar 2022: GBP18.4m surplus), was primarily due to the
increase in the discount rate assumption by 240 basis points driven
by the market movement in corporate bond yields and a 10 basis
points decrease in expected future inflation. This was partially
offset by a reduction in the value of the Scheme's assets as a
result of the market events as described above.
14. Provisions
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
============================================= ========= ============= ============
Opening Balance 1.6 1.7 1.7
Charged/(released) to the income statement - - (0.2)
Lease liabilities under IFRS 16 reclassified
as provision - - 0.3
Utilisation of provision - (0.1) (0.2)
============================================= ========= ============= ============
Closing balance 1.6 1.6 1.6
============================================= ========= ============= ============
Current 0.6 - 0.6
Non-current 1.0 1.6 1.0
============================================= ========= ============= ============
Closing balance 1.6 1.6 1.6
============================================= ========= ============= ============
The Company is part of a Covenanter Group (CG) which is party to
a Deed of Covenant under which certain guarantees over the benefits
of members of the EATL Group of the Electricity Supply Pension
Scheme have been given. The closing provision at 30 September 2022
of GBP1.2m (30 Sept 2021: GBP1.6m, 31 Mar 2022: GBP1.2m) on a
discounted basis relates to the Company's 6.7% share of the
liabilities. GBP0.2m of this balance is due after more than one
year and GBP1.0m of it is due in less than one year.
The remainder of the provision relates to onerous lease
provisions and is all due in less than one year.
Notes to the Condensed Consolidated Financial Statements
(continued)
15. Related party transactions
Transactions between the Company and its subsidiaries, which are
related parties, have been eliminated on consolidation and are not
disclosed in this note. During the period, the Electricity North
West Ltd Group companies entered into the following transactions
with related parties who are not members of that Group:
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
Group GBPm
=============================================== ========= ============= ============
Charges to:
Electricity North West (Construction
and Maintenance) Ltd 1.2 - 0.1
Electricity North West Services Ltd 0.7 1.2 0.9
Electricity North West Property Ltd 0.1 - -
Charges from:
Electricity North West (Construction
and Maintenance) Ltd (0.5) (0.2) -
Electricity North West Services Ltd (4.0) - (7.3)
Interest payable to:
North West Electricity Networks plc (1.1) (1.1) (2.1)
ENW Finance plc (2.2) (5.9) (8.1)
----------------------------------------------- --------- ------------- ------------
Interest on group borrowings (Note 6) (3.2) (7.0) (10.2)
----------------------------------------------- --------- ------------- ------------
Reimbursement of inter-company loan impairment
ENW Finance plc (0.1) 0.1 0.3
Fair value movement on inter-company
derivative asset with ENW Finance plc
(Note 6) 142.3 (36.4) (41.2)
Fair value movement on inter-company
derivative liability with ENW Finance
plc (Note 6) (142.3) 37.3 42.1
Dividends paid to North West Electricity
Networks plc (Note 8) (23.0) (15.9) (97.1)
Directors' remuneration (1.2) (1.2) (2.2)
=============================================== ========= ============= ============
Notes to the Condensed Consolidated Financial Statements
(continued)
15. Related party transactions (continued)
Amounts outstanding between the Group and other companies within
the North West Electricity Networks (Jersey) Limited Group:
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
=========================================== ========= ============= ============
Amounts owed by:
North West Electricity Networks plc 3.5 3.4 3.5
North West Electricity Networks (Holdings)
Ltd 0.2 0.2 0.2
Electricity North West (Construction
and Maintenance) Ltd 0.4 0.3 0.6
Electricity North West Services Ltd 0.6 0.3 0.3
Electricity North West Property Ltd 0.1 0.1 0.1
North West Electricity Networks (Jersey)
Ltd 0.1 0.9 0.1
------------------------------------------- --------- ------------- ------------
Total in debtors 4.9 5.2 4.8
------------------------------------------- --------- ------------- ------------
Amounts owed to:
North West Electricity Networks (Holdings)
Ltd (0.2) - (0.2)
Electricity North West (Construction
and Maintenance) Ltd (0.1) - -
Electricity North West Services Ltd (0.5) (0.3) (0.9)
North West Electricity Networks (Jersey)
Ltd (0.1) - (0.1)
Interest payable to:
North West Electricity Networks plc (0.6) (0.6) (0.6)
ENW Finance plc (1.1) (0.7) (3.4)
Total in creditors (2.6) (1.6) (5.2)
------------------------------------------- --------- ------------- ------------
Borrowings payable to (Note 10):
North West Electricity Networks plc (84.7) (82.2) (84.2)
ENW Finance plc (298.7) (298.6) (298.6)
Inter-company derivative asset with
ENW Finance plc (Note 12) 266.6 404.0 408.8
Inter-company derivative liability
with ENW Finance plc (Note 12) (266.6) (404.0) (408.8)
Group tax relief to:
North West Electricity Networks plc - (5.5) (10.2)
The loan from North West Electricity Networks plc accrues
weighted average interest at 2.47% per annum (30 Sept 2021: 2.53%,
31 Mar 2022: 2.47%) and is repayable in March 2028.
The loan from ENW Finance plc accrues interest at a fixed rate
of 1.415% and is repayable in July 2030.
Notes to the Condensed Consolidated Financial Statements
(continued)
16. Cash generated from operations
Unaudited Unaudited Audited
Period Period ended Year ended
ended 30 Sept 31 Mar 2022
30 Sept 2021 GBPm
2022 GBPm
GBPm
=========================================== ========= ============= ============
Operating profit 92.6 82.3 175.6
Adjustments for:
Depreciation of property, plant and
equipment 69.1 60.3 119.9
Amortisation of intangible assets - 2.6 12.8
Amortisation of customer contributions (10.0) (9.7) (19.5)
Profit/(loss) on disposal of property,
plant and equipment (0.3) - (0.1)
Cash contributions in excess of pension
charge to operating profit (10.7) (17.3) (23.7)
=========================================== ========= ============= ============
Operating cash flows before movement
in working capital 140.7 118.2 265.0
Changes in working capital:
(Increase)/decrease in inventories (2.7) (1.2) (4.1)
(Increase)/decrease in trade and other
receivables (20.7) 1.7 (4.7)
Increase/(decrease) in provisions and
payables 2.5 (18.2) 10.0
=========================================== ========= ============= ============
Cash generated from operations 119.8 100.5 266.2
=========================================== ========= ============= ============
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END
IR VKLFLLFLBFBZ
(END) Dow Jones Newswires
November 29, 2022 13:16 ET (18:16 GMT)
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