TIDMBWRA

RNS Number : 9739U

Bristol Water PLC

29 November 2023

Announcement of unaudited interim results for the six months ended 30 September 2023

Bristol Water plc (the "Company") announces its unaudited results for the six months ending 30 September 2023.

The Company's interim financial results are set out below and can also be accessed via the Company's website.

FINANCIAL HIGHLIGHTS

 
                                           Six months      Six months 
                                                   to              to 
                                         30 September    30 September 
                                                 2023            2022 
                                          (unaudited)     (unaudited) 
                                                 GBPm            GBPm 
 
 Revenue                                            -            69.7 
 
 EBITDA                                         (0.3)            32.9 
 
 Profit before taxation                         (0.1)             0.4 
 
 Earnings per share 
 Statutory (loss) / profit per share           (5.0)p            5.0p 
 
 

On 1st February 2023 the Company's licence, trading, assets and liabilities were transferred to South West Water Limited. Post this statutory transfer the only transactions in the income statement relate to the remaining preference shares, debentures and pension asset. The remaining obligations relating to these are met from matching intra-group contracted assets and related receipts.

During the period the Company declared a dividend of GBP143.0m, payable to the parent company, South West Water Limited, as part of the planned group restructuring steps post statutory transfer. This dividend reduced the intercompany debtor balance owed by South West Water Limited.

For further information, please contact:

 
 Paul Boote            Group Chief Financial Officer       01392 443 168 
 Jennifer Cooke        Group Head of Investor Relations    01392 443 618 
 James Murgatroyd 
  Harry Worthington    FGS Global                          020 7251 3801 
 

INCOME STATEMENT

For the six months ended 30 September 2023

 
 
                                                                            Six months to   Six months to      Year to 
                                                                             30 September    30 September     31 March 
                                                                                     2023            2022         2023 
                                                                              (unaudited)     (unaudited)    (audited) 
 
 
                                                                    Note             GBPm            GBPm         GBPm 
 
 Revenue before non underlying items                                 5                  -            69.7        115.6 
 Non underlying revenue                                                                 -               -        (6.6) 
                                                                          ===============  ==============  =========== 
 Revenue                                                                                -            69.7        109.0 
 
 Operating costs                                                     6              (0.3)          (49.1)       (84.6) 
 Impairment losses on trade receivables                                                 -           (2.1)        (3.5) 
                                                                          ===============  ==============  =========== 
 Operating costs before non underlying items                                        (0.3)          (51.2)       (88.1) 
 
 Non underlying operating costs                                                         -               -        (1.2) 
                                                                          ===============  ==============  =========== 
 Total net operating costs                                                          (0.3)          (51.2)       (89.3) 
 
 Operating (loss) / profit                                                          (0.3)            18.5         19.7 
 
 Interest payable and similar charges before non underlying items    7              (0.6)          (20.1)       (34.0) 
 Interest receivable and similar charges before non underlying 
  items                                                                               0.8             2.0          2.7 
 Non underlying interest payable and similar charges                                    -               -       (13.1) 
                                                                          ===============  ==============  =========== 
 Net interest payable and similar charges                                             0.2          (18.1)       (44.4) 
 
 (Loss) / profit on ordinary activities before taxation                             (0.1)             0.4       (24.7) 
 
 Taxation on (loss) / profit on ordinary activities                  8              (0.2)           (0.1)          4.5 
 
 (Loss) / profit for the period/year                                                (0.3)             0.3       (20.2) 
                                                                          ===============  ==============  =========== 
 
 (Loss) / earnings per ordinary share                                9             (5.0)p            5.0p     (336.7)p 
 

Substantially all of the Company's operations were discontinued during the year ended 31 March 2023.

STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 September 2023

 
                                                                   Six months to   Six months to     Year to 
                                                                    30 September    30 September    31 March 
                                                                            2023            2022        2023 
                                                                     (unaudited)     (unaudited)   (audited) 
                                                            Note            GBPm            GBPm        GBPm 
 
 (Loss) / profit for the period/year                                       (0.3)             0.3      (20.2) 
 
 Other comprehensive income: 
 
 Items that will not be reclassified to profit and loss 
 Actuarial losses on retirement benefit surplus                                -             0.1         0.5 
 Re-measurement of defined benefit pension scheme              8               -               -       (0.1) 
                                                                  ==============  ==============  ========== 
 Other comprehensive income for the period/year, net of tax                    -             0.1         0.4 
 
 Total comprehensive (loss) / profit for the period/year                   (0.3)             0.4      (19.8) 
                                                                  ==============  ==============  ========== 
 

STATEMENT OF FINANCIAL POSITION

As at 30 September 2023

 
                                                    30 September   30 September     31 March 
                                                            2023           2022         2023 
                                                                       restated 
                                                     (unaudited)    (unaudited)    (audited) 
                                             Note           GBPm           GBPm         GBPm 
 Non-current assets 
 Property, plant and equipment                                 -          689.6            - 
 Intangible assets                                             -           13.3            - 
 Other investments - Loans to a 
  UK holding Company                                           -           61.1            - 
 Other receivables                            10            26.6              -         26.6 
 Retirement benefit surplus                   11             8.2            8.0          8.2 
                                                   =============  =============  =========== 
                                                            34.8          772.0         34.8 
 Current assets 
 Inventory                                                     -            2.2            - 
 Trade and other receivables                                 1.5           35.9        144.5 
 Current tax asset                                           0.6              -          0.7 
 Cash and cash equivalents                                   0.3           14.3          0.1 
                                                   =============  =============  =========== 
                                                             2.4           52.4        145.3 
 
 Total assets                                               37.2          824.4        180.1 
                                                   =============  =============  =========== 
 Non-current liabilities 
 Lease liabilities                                             -          (0.9)            - 
 Deferred income tax liabilities                               -         (94.0)            - 
 Borrowings and derivatives                   12           (1.6)        (413.5)        (1.6) 
 8.75% irredeemable cumulative preference 
  shares                                      12          (12.5)         (12.5)       (12.5) 
 Deferred income                                               -          (1.6)            - 
 Government Grants                                             -          (0.3)            - 
                                                   =============  =============  =========== 
                                                          (14.1)        (522.8)       (14.1) 
 Current liabilities 
 Lease liabilities                                             -          (0.4)            - 
 Current portion of deferred income                            -          (2.7)            - 
 Trade and other payables                                  (1.3)         (43.4)        (0.9) 
 Current tax liability                                         -          (5.5)            - 
                                                           (1.3)         (52.0)        (0.9) 
 
 Total liabilities                                        (15.4)        (574.8)       (15.0) 
                                                   =============  =============  =========== 
 
 Net assets                                                 21.8          249.6        165.1 
                                                   =============  =============  =========== 
 
 Equity 
 Called-up share capital                                     6.0            6.0          6.0 
 Share premium account                                       4.4            4.4          4.4 
 Other reserves                                              5.8            5.8          5.8 
 Retained earnings                                           5.6          233.4        148.9 
                                                   =============  =============  =========== 
 Total Equity                                               21.8          249.6        165.1 
                                                   =============  =============  =========== 
 
   The financial statements of Bristol Water plc, registered number 02662226 
   on pages 2 to 14 were approved by the Board of Directors 28 November 
   2023 and signed on its behalf by: 
 
 
 
   Paul Boote 
   Director 
 
 
 

STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 September 2023

 
                            Called up share capital   Share premium   Capital redemption   Retained earnings     Total 
                                                            account              reserve 
                                               GBPm            GBPm                 GBPm                GBPm      GBPm 
 
 
 Balance at 1 April 2022 
  (restated, note 3.2)                          6.0             4.4                  5.8               232.9     249.1 
                           ========================  ==============  ===================  ==================  ======== 
 
 Profit for the period                            -               -                    -                 0.3       0.3 
 
 Other comprehensive 
 income for the period: 
 Actuarial gains 
  recognised in respect 
  of retirement                                   -               -                    -                 0.1       0.1 
 benefit obligations 
 Re-measurement of                                -               -                    -                   -         - 
 defined benefit scheme 
 
 Total comprehensive 
  income for the period                           -               -                    -                 0.4       0.4 
 
 Ordinary dividends                               -               -                    -                   -         - 
 Share-based payments                             -               -                    -                 0.1       0.1 
 
 Balance as at 30 
  September 2022                                6.0             4.4                  5.8               233.4     249.6 
                           ========================  ==============  ===================  ==================  ======== 
 
 
 
 
 
 Balance at 1 April 2023                        6.0             4.4                  5.8               148.9     165.1 
                           ========================  ==============  ===================  ==================  ======== 
 
 Loss for the period                              -               -                    -               (0.3)     (0.3) 
 
 Other comprehensive 
 income for the period: 
 Actuarial losses                                 -               -                    -                   -         - 
 recognised in respect of 
 retirement 
 benefit obligations 
 Re-measurement of                                -               -                    -                   -         - 
 defined benefit scheme 
 
 Total comprehensive 
  income for the period                           -               -                    -               (0.3)     (0.3) 
 
 Ordinary dividends                               -               -                    -             (143.0)   (143.0) 
 
 Balance as at 30 
  September 2023                                6.0             4.4                  5.8                 5.6      21.8 
                           ========================  ==============  ===================  ==================  ======== 
 

The Board has not proposed interim dividends on the ordinary shares in respect of the period ended 30 September 2023 (6 months ended 30 September 2022: GBPnil).

CASH FLOW STATEMENT

For the six months ended 30 September 2023

 
 
                                                                          Six months to   Six months to      Year to 
                                                                           30 September    30 September     31 March 
                                                                                   2023            2022         2023 
                                                                            (unaudited)     (unaudited)    (audited) 
 
 
                                                                  Note             GBPm            GBPm         GBPm 
 Cashflows from operating activities 
 (Loss) / profit before taxation                                                  (0.1)             0.4       (24.7) 
 Adjustments for: 
  Share based payments                                                                -             0.1          0.1 
  Deferred income amortisation                                                        -           (2.0)        (3.3) 
  Depreciation                                                     6                  -            12.7         21.4 
  Amortisation of intangibles                                      6                  -             1.7          2.9 
  Difference between pension charges and contributions paid                         0.3             0.2          0.6 
  Profit on disposal of assets                                                        -               -          0.1 
  Interest income                                                  7              (0.5)           (1.8)        (2.4) 
  Interest expense                                                 7                0.6            20.1         47.1 
  Pension interest income                                          7              (0.3)           (0.2)        (0.3) 
  Increase in inventory                                                               -           (0.3)        (0.5) 
  (Increase) / decrease in trade and other receivables                                -           (4.4)          0.5 
  (Decrease) / increase in trade and other creditors and 
   provisions                                                                     (0.1)             5.7          9.5 
                                                                        ===============  ==============  =========== 
 Cash (used in) / generated from operations                                       (0.1)            32.2         51.0 
 
 Interest paid                                                                        -           (7.2)       (21.4) 
 Corporation taxes paid                                                               -           (1.5)        (1.6) 
 Contributions received                                                               -             1.5          2.8 
                                                                        ===============  ==============  =========== 
 Net cash (used in) / generated from operating activities                         (0.1)            25.0         30.8 
                                                                        ===============  ==============  =========== 
 
 Cash flows from investing activities 
 Purchase of property plant and equipment and intangibles                             -          (23.0)       (40.7) 
 Interest received                                                                  0.8               -          2.4 
 Repayment of intercompany loan receivable                                            -               -         61.1 
 Transfer of trade and assets                                                         -               -        (5.1) 
                                                                        ===============  ==============  =========== 
 Net cash generated from / (used in) investing activities                           0.8          (23.0)         17.7 
                                                                        ===============  ==============  =========== 
 
 Cash flows from financing activities 
 Proceeds from loans and borrowings                                                   -             8.0         81.1 
 Repayment of loans and borrowings                                                    -           (7.0)       (75.8) 
 Payment of lease liabilities                                                         -           (0.2)        (0.3) 
 Preference dividends paid                                                        (0.5)           (0.5)        (1.1) 
 Equity dividends paid                                                                -               -       (64.3) 
                                                                        ===============  ==============  =========== 
 Net cash (used in) / generated from financing activities                         (0.5)             0.3       (60.4) 
                                                                        ===============  ==============  =========== 
 
 Net increase / (decrease) in cash and cash equivalents                             0.2             2.3       (11.9) 
 
 Cash and cash equivalents, beginning of period                                     0.1            12.0         12.0 
 
 Cash and cash equivalents, end of period                                           0.3            14.3          0.1 
                                                                        ===============  ==============  =========== 
 

The current year movement in trade and other receivables includes a dividend in specie of GBP143.0m which was used to reduce the intercompany debtor balance owed by South West Water Limited.

NOTES TO THE INTERIM ACCOUNTS

For the six months ended 30 September 2023

 
 1     General Information 
       Bristol Water plc ("the Company") 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. 
 
 2     Basis of preparation 
       The financial information contained in this interim announcement does not constitute statutory 
        accounts within the meaning of section 435 of the Companies Act 2006. The interim accounts 
        have been prepared in accordance with Financial Reporting Standard 104 "Interim Financial 
        Reporting" issued by the Financial Reporting Council and the Disclosure Rules and Transparency 
        Rules of the United Kingdom's Financial Conduct Authority. 
 
        The Company has adopted FRS 101 "Reduced disclosure framework - Disclosure exemptions from 
        EU-adopted IFRS for qualifying entities". 
 
 3     Accounting policies 
        The same accounting policies used in preparing the annual financial statements as at 31 March 
        2023 have been used in preparing these interim accounts. 
 
 3.1   Going concern 
        Following the transfer of the Company's licence, trade, assets and obligations to South West 
        Water Limited on 1 February 2023, the Company's remaining obligations will be met by matching 
        intra-group contracted assets and related receipts. 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 period which covers the period from approval 
        of these interim financial statements through to 30 November 2024. 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 12. 
 3.2   Change in accounting policies 
        As at 30 September 2022, the Company's accounting policies were aligned to its parent company 
        Pennon Group plc resulting in a restatement of the opening balance sheet as at 1 April 2022. 
        At 31 March 2023 the estimates used in the September 2022 interim financial statements were 
        updated resulting in a small additional change to the opening retained earnings and deferred 
        tax liability balances as at 1 April 2022. The Company's financial statements for the comparative 
        period, i.e. 30 September 2022, have been restated so all periods are comparable. The impact 
        of this adjustment also includes the correction of a presentational error whereby deferred 
        tax assets should have been offset against deferred tax liabilities in line with IAS 12 and 
        a change in the presentation of current tax liability as a separate line item in the balance 
        sheet in line with IAS 1. 
 
 4     Critical accounting estimates and judgments 
       The preparation of interim financial statements requires management to make judgements, estimates 
        and assumptions that affect the application of accounting policies and the reported amounts 
        of assets and liabilities, income and expense. Actual results may differ from these estimates. 
        Estimates and judgments are continually evaluated and are based on historical experience and 
        other factors, including expectations of future events that are believed to be reasonable 
        under the circumstances. 
 
       The estimates and assumptions that have a significant risk of causing a material adjustment 
        to the carrying amount of assets and liabilities within the financial year relate to the defined 
        benefit scheme. The significant judgements made by management in applying the Company's accounting 
        policies and the key sources of estimate uncertainty relating to the defined benefit scheme 
        were the same as those applied to the financial statements for the year ended 31 March 2023. 
 
 
 5     Revenue 
 
                                                             Six months to          Six months to           Year to 
                                                         30 September 2023      30 September 2022     31 March 2023 
                                                               (unaudited)            (unaudited)         (audited) 
                                                                      GBPm                   GBPm              GBPm 
       Appointed income 
   Household - measured                                                  -                   30.6              50.0 
   Household - unmeasured                                                -                   21.6              36.1 
   Non-household- measured                                               -                   13.2              22.2 
   Non-household - unmeasured                                            -                    0.2               0.3 
   Contributions from developers                                         -                    2.0               3.3 
   Third party services                                                  -                    0.9               1.8 
   Rental income                                                         -                    0.6               1.0 
                                              ============================  =====================  ================ 
                                                                         -                   69.1             114.7 
 
       Non-appointed income 
   Recreations                                                           -                    0.3               0.5 
   Rental income                                                         -                    0.1               0.2 
   Other                                                                 -                    0.2               0.2 
                                              ============================  =====================  ================ 
                                                                         -                    0.6               0.9 
 
  Revenue before non underlying items                                    -                   69.7             115.6 
                                              ============================  =====================  ================ 
 
       Non underlying income 
   Watershare +                                                          -                      -             (6.6) 
                                              ============================  =====================  ================ 
  Total Revenue                                                          -                   69.7             109.0 
                                              ============================  =====================  ================ 
 
  Appointed income was income earned under the Company's licence to supply water for the period 
   until 1 February 2023 when the licence was transferred to SWW. Non-appointed income related 
   to activities that do not require a water supply licence. All revenue related to the trade 
   and assets transferred to SWW. 
 
   The total revenue in the year ended 31 March 2023 includes GBP107.9m for revenue from contracts 
   with customers under IFRS 15 and GBP1.1m of leasing income under IFRS 16 "Leases". 
 
   In the year ended 31 March 2023, the Company offered Pennon Group plc's, its parent company, 
   WaterShare+ scheme to its customers whereby customers could choose to accept a credit on their 
   bill or take shares in Pennon Group plc. The value of the rebate equated to GBP13 per customer 
   and the total value of GBP6.6 million was recognised in full as a non-underlying reduction 
   to revenue. This item was non-underlying in nature given its individual size and its non-recurring 
   nature. 
 
 
 6       Operating expenses 
 
                                                                 Six months to        Six months to          Year to 
                                                             30 September 2023    30 September 2022    31 March 2023 
                                                                   (unaudited)          (unaudited)        (audited) 
                                                                          GBPm                 GBPm             GBPm 
         Operating expenses include - 
 
         Payroll cost, net of recharges to fixed assets 
         and including 
          retirement benefit costs                                           -                  8.6             14.0 
  Depreciation and amortisation                                              -                 14.4             24.3 
  Profit on disposal of assets                                               -                    -              0.1 
 
         Non underlying costs include - 
 
  Legal costs                                                                -                    -              1.0 
  Integration costs                                                          -                    -              0.2 
 
  In the prior year GBP40m bonds due to be repaid in March 2041 were redeemed as part of the 
   statutory transfer of the Company's business to South West Water. Associated legal costs of 
   cGBP1m were incurred in relation to the bond redemption. The redemption of the bonds was non-recurring 
   and of a material value, hence the cost was treated as non-underlying. 
 
   In the prior year the Company incurred expenses of GBP0.2m relating to the integration and 
   statutory transfer of the Company's trade, assets and obligations to South West Water. These 
   costs were classified as non-underlying due to their non-recurring nature. 
 
 
 
 
 7       Net interest payable and similar charges 
 
 
                                                                 Six months to        Six months to          Year to 
                                                             30 September 2023    30 September 2022    31 March 2023 
                                                                   (unaudited)          (unaudited)        (audited) 
                                                                          GBPm                 GBPm             GBPm 
         Interest payable and similar charges: 
 
  Bank borrowings                                                            -                (1.7)            (3.7) 
         Term loans and debentures: 
   interest charges                                                      (0.1)                (5.6)            (9.4) 
   indexation                                                                -               (12.8)           (20.0) 
  Leases                                                                     -                    -            (0.1) 
  Capitalisation of borrowing cost                                           -                  0.5              0.9 
         Dividends on 8.75% irredeemable cumulative 
           preference shares                                             (0.5)                (0.5)            (1.1) 
  Loan from Pennon Group plc                                                 -                    -            (0.6) 
                                                          ====================  ===================  =============== 
                                                                         (0.6)               (20.1)           (34.0) 
 
         Interest receivable and similar income: 
 
  Interest income in respect of retirement 
   benefit scheme                                                          0.3                  0.2              0.3 
         South West Water Ltd - interest receivable                        0.5                    -                - 
  Bristol Water Holdings UK Ltd - interest 
   receivable                                                                -                  1.8              2.4 
                                                          ====================  ===================  =============== 
                                                                           0.8                  2.0              2.7 
 
  Total underlying net interest receivable / 
   (payable) and similar charges                                           0.2               (18.1)           (31.3) 
                                                          ====================  ===================  =============== 
 
  Bond redemption costs                                                      -                    -           (13.1) 
 
  Total net interest receivable / (payable) and 
   similar charges                                                         0.2               (18.1)           (44.4) 
                                                          ====================  ===================  =============== 
 
 
 
  In the prior year bonds with a carrying value of GBP59.2m were redeemed for GBP72.3 million. 
   The difference of GBP13.1m arising on early settlement was debited to finance costs in the 
   year ended 31 March 2023. The redemption of the bonds is non-recurring and of a material value, 
   hence the debit was treated as non-underlying. 
 
   The rate used to determine the amount of borrowing costs eligible for capitalisation in the 
   period ended 30 September 2022: 9.2%, 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 "Financial Instruments". 
 
 
 
  8     Taxation                                                 Six months to        Six months to          Year to 
                                                             30 September 2023    30 September 2022    31 March 2023 
                                                                   (unaudited)          (unaudited)        (audited) 
                                                                          GBPm                 GBPm             GBPm 
       Tax expense / (income) included in Income 
       Statement 
 
       Current tax: 
   Corporation tax on profits for the period /year                         0.2                  5.7              0.4 
   Adjustment in respect of prior period                                     -                    -            (0.1) 
                                                          ====================  ===================  =============== 
  Total current tax                                                        0.2                  5.7              0.3 
 
       Deferred tax: 
   Origination and reversal of timing differences                            -                (5.6)            (4.9) 
   Adjustment to prior periods                                               -                    -              0.1 
  Total deferred tax                                                         -                (5.6)            (4.8) 
 
  Tax expense/(income) on profit / (loss)                                  0.2                  0.1            (4.5) 
                                                          ====================  ===================  =============== 
 
 
       Tax expense included in other comprehensive 
       income 
 
  Remeasurement of post-employment benefit 
   liability                                                                 -                    -              0.1 
 
  Total tax expense included in other comprehensive 
   income                                                                    -                    -              0.1 
                                                          ====================  ===================  =============== 
 
 
 9     (Loss) / earnings per ordinary share 
 
                                                                              At                   At               At 
                                                               30 September 2023    30 September 2022    31 March 2023 
                                                                     (unaudited)          (unaudited)        (audited) 
 
 
                                                                               m                    m                m 
       Basic (loss) / earnings per ordinary share have 
       been calculated as follows - 
       (Loss) / earnings attributable to ordinary shares                GBP(0.3)               GBP0.3        GBP(20.2) 
  Weighted average number of ordinary shares                                 6.0                  6.0              6.0 
                                                            ====================  ===================  =============== 
                                                                          (5.0)p                 5.0p         (336.7)p 
 
  As the Company has no obligation to issue further shares, disclosure of earnings per share 
   on a fully diluted basis is not relevant. 
 
 
 10    Other receivables: 
       Other receivables comprise loan notes issued to the Company on 1 February by SWW. 
 
                                                                      At                   At                 At 
                                                               30 September 2023    30 September 2022    31 March 2023 
                                                                  (unaudited)          (unaudited)         (audited) 
 
                                                                     GBPm                 GBPm               GBPm 
                                       Fixed interest rate 
 
  GBP25,000,000 fixed rate loan note           6%                   25.0                   -                 25.0 
  GBP1,405,218 fixed rate loan note            4%                    1.4                   -                 1.4 
  GBP72,900 fixed rate loan note              3.5%                   0.1                   -                 0.1 
  GBP54,875 fixed rate loan note               4%                    0.1                   -                 0.1 
       GBP36,740 fixed rate loan              4.25%                   -                    -                  - 
       note 
                                                            ====================  ===================  =============== 
                                                                    26.6                   -                 26.6 
                                                            ====================  ===================  =============== 
 
 
 11   Retirement benefits 
 
        Pension arrangements for former employees have historically been provided through the Company's 
        membership of the Water Companies' Pension Scheme (WCPS), which provides defined benefits 
        based on final pensionable pay. The Company's membership of WCPS is through a separate section 
        of the scheme. On 7 June 2018 the Trustee of the Bristol Water Section of the WCPS purchased 
        a bulk annuity policy to insure the benefits for the members in the section. Following this, 
        the method for valuing the liabilities of the pension scheme has remained the same. The pension 
        liability, following the purchase of the bulk annuity policy, matches the value of the insurance 
        asset. 
 
        The gross pension surplus of GBP12.6m at 30 September 2023 (30 September 2022 GBP12.4m) relates 
        to the market value of assets still held by the scheme other than the annuity policy/insurance 
        asset. 
 
        Looking ahead, we expect the insurer will take over responsibility for the payment and administration 
        of member benefits. Once this has happened members will no longer be members of the Section, 
        instead they will have individual policies with the insurer. At this point the Section will 
        be wound up. 
 
 
       In summary, assets and liabilities under IAS 19 were: 
 
                                                                   At                   At               At 
                                                    30 September 2023    30 September 2022    31 March 2023 
                                                          (unaudited)          (unaudited)        (audited) 
 
                                                                 GBPm                 GBPm             GBPm 
 
 
  Fair value of section assets                                  116.0                123.7            124.6 
  Present value of liabilities                                (103.4)              (111.3)          (112.0) 
                                                 ====================  ===================  =============== 
  Surplus in the section                                         12.6                 12.4             12.6 
  Less: restriction of surplus                                  (4.4)                (4.4)            (4.4) 
 
  Net pension asset on IAS 19 basis                               8.2                  8.0              8.2 
                                                 ====================  ===================  =============== 
 
 
 
 12    Net borrowings 
 
                                                                            At                   At               At 
                                                             30 September 2023    30 September 2022    31 March 2023 
                                                                   (unaudited)          (unaudited)        (audited) 
 
 
                                                                          GBPm                 GBPm             GBPm 
       Net borrowings comprise - 
  Borrowings and derivatives due after one year                            1.6                413.5              1.6 
       Lease liabilities due after one year                                  -                  0.9                - 
       Current portion of lease liabilities                                  -                  0.4                - 
                                                                           1.6                414.8              1.6 
 
  Cash and cash equivalents                                              (0.3)               (14.3)            (0.1) 
                                                          ====================  ===================  =============== 
       Net borrowings excluding 8.75% irredeemable 
       cumulative 
   preference shares                                                       1.3                400.5              1.5 
 
  8.75% irredeemable cumulative preference shares                         12.5                 12.5             12.5 
 
  Net borrowings                                                          13.8                413.0             14.0 
                                                          ====================  ===================  =============== 
 
 
 
 
       Fair value of financial assets and liabilities measured at amortised cost . 
 
       The fair value of financial assets and liabilities are as follows: 
                                                        Six months to        Six months to          Year to 
                                                    30 September 2023    30 September 2022    31 March 2023 
                                                          (unaudited)          (unaudited)        (audited) 
                                                                 GBPm                 GBPm             GBPm 
       Financial liabilities 
  Non-current                                                    20.2                487.4             23.0 
       Current                                                      -                  6.2                - 
 
       Financial assets 
  Non-current                                                  (21.8)                    -           (26.6) 
                                                 ====================  ===================  =============== 
                                                                (1.6)                493.6            (3.6) 
                                                 ====================  ===================  =============== 
 
 
 
 
 13   Ultimate parent company and controlling party 
 
        The immediate parent company for this entity is South West Water 
        Limited a company incorporated in England and Wales. 
 
        As at 30 September 2023 and 31 March 2023, the Directors considered 
        the ultimate parent and controlling party of the Company to 
        be Pennon Group plc. 
 
        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. 
 14   Related party transactions 
 
       During the year ended 31 March 2023 the Company spent GBP2.9m 
       on the purchase of customer related services from BWBSL, a joint 
       venture company between Bristol Water Holdings Limited and Wessex 
       Water Services Limited. At 30 September and 31 March 2023 GBPnil 
       was receivable from BWBSL and GBPnil was payable to BWBSL. 
 
       During the year ended 31 March 2023 the Company recognised sales 
       of GBP16.2m to Water 2 Business Limited (W2B), an associate 
       company within the BWHUK group of companies. At 30 September 
       and 31 March 2023 GBPnil was receivable from W2B. 
 
       During the year ended 31 March 2023 the Company recognised sales 
       of GBP0.9m to PWS. At 30 September and 31 March 2023 GBPnil 
       was receivable from PWS. 
 
 15   Circulation 
 
       This interim announcement is available on the Bristol Water 
       web site. Paper copies are also available from the Company's 
       registered office at Bridgwater Road, Bristol, BS13 7AT, England. 
 

DIRECTORS' RESPONSIBILITIES FOR THE PREPARATION OF INTERIM ACCOUNTS

The directors confirm that these condensed interim financial statements have been prepared in accordance with FRS104 'Interim Financial Reporting', and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

-- an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

-- material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.

The directors of Bristol Water Plc are listed in the Bristol Water Plc Annual Report for 31 March 2023.

Going concern

The directors have a reasonable expectation that the Company has adequate resources available to it to continue in operational existence for the foreseeable future and have therefore continued to adopt the going concern policy in preparing the interim accounts. This conclusion is based upon, amongst other matters, a review of the Company's financial projections together with confirmation of support from its parent company Pennon Group plc.

By order of the Board

P Boote

Chief Financial Officer

28 November 2023

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END

IR NKFBBCBDDNDB

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November 29, 2023 02:00 ET (07:00 GMT)

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