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Tuesday 31 July, 2018

Connect M77/GSO

Annual Financial Report

RNS Number : 3846W
Connect M77/GSO
31 July 2018
 

 
Click on, or paste the following link into your web browser, to view the associated PDF document.

http://www.rns-pdf.londonstockexchange.com/rns/3846W_1-2018-7-31.pdf



Registered number
04698798

 

 

 

 

 

 

 

 

CONNECT M77/GSO PLC 

Annual Report and Financial Statements 
For the Year Ended 

31 March 2018 

 

 

 


 

 

 

 

CONNECT M77/GSO PLC 

Annual Report and Financial Statements
Contents 

 

 

 

 

 

 

Page 

 

 

Strategic report                                                                   1 - 3 

 

Directors' Report                                                                 4 - 5 

 

Directors' Responsibilities Statement                                       6 

Independent auditor's report                                               7 - 9 

Profit and loss account                                                           10 

Balance Sheet                                                                        11 

Statements of changes in equity                                            12 

Notes to the financial statements                                    13 - 24 
 

 

 

 

CONNECT M77/GSO PLC
Strategic Report 

for the year ended 31 March 2018 

 

TheDirectors,inpreparingthisStrategicReport,havecompliedwiths414CoftheCompaniesAct 2006. 

 

Strategic Review 
TheCompanyisincorporatedinGreatBritain,registeredinEnglandandWalesanddomiciledinthe United Kingdom. 

On7May2003ConnectM77/GSOplcsignedacontractwithEastRenfrewshireCouncil(onbehalf oftheScottishGovernmentfortheM77andSouthLanarkshireCouncilandEastRenfrewshire CouncilfortheGlasgowSouthernOrbital(GSO))todesign,build,financeandoperate(DBFO)the M77fromFenwicktoMalletsheughandtheGSOfromMalletsheughtoPhilipshill,EastKilbrideand sectionsoftheA726andtomaintainthese

roadsunderalicenceovera32yearperiodaswellas modifycertainsectionsoftheA77.InaccordancewiththeconcessionagreementtheCompany

is responsibleforoperatingtheroadstogetherwithcarryingoutalloftheroutineandmajorlifecycle maintenance for the life of the concession. 

ThenewroadsectionswereopenedtothepublicinApril2005andthefinalcompletioncertificate was issued in September 2005. 

TherehavebeennochangestotheCompany'sactivitiesintheyearunderreviewandnoneare currently contemplated. 

 

Review of business 
Theresultsfortheyeararesetoutonpage9.Thelossfortheyearbeforetaxationwas£(33,000) (2017:£(61,000))andthenetliabilitiespositionasat31March2018is£28,809,000(2017: £29,095,000) for the Company. 

 

Key Performance Indicators 

 

TheCompanyhassetspecificbusinessobjectives,whicharemonitoredusinganumberofkey performance indicators ("KPIs").  The relevant KPIs for this report are detailed below: 

 

2018             2017 

£ '000           £ '000 

 

(Loss)/profit after taxation                                                  (32)                42

Net liabilities                                                                (29,127)        (29,095) 
 

 

 

 

CONNECT M77/GSO PLC
Strategic Report 

for the year ended 31 March 2018 

 

 

Key Performance Indicators (continued) 

 

DespitetheCompanyshowingnet    liabilities,theCompany'sprojections,takingaccountof reasonablypossiblecounterpartyperformance,showthattheCompanyexpectstobeableto continuetooperatefortheforeseeablefuture.Accordingly,theycontinuetoadoptthegoingconcern basis in preparing the annual report and financial statements. 

 

Principal Risks and Uncertainties 

 

TheCompanyrecognisesthateffectiveriskmanagementisfundamentaltoachievingitsbusiness objectivesinordertomeetitscommitmentsinfulfillingthePFIcontractandindeliveringasafeand efficientservice.Riskmanagementcontributestothesuccessofthebusinessbyidentifying opportunitiesandanticipatingrisks   inordertoimprovebusinessperformanceandfulfilour contractualobligations.TheFinancialrisksaredescribedindetailinnote13oftheFinancial Statements. 

 

            Credit and cash flow risk

TherelevantfinancialriskstotheCompanyarecreditandcashflowrisks,whicharisefromits primaryclient,EastRenfrewshireCouncil.Thecreditandcashflowrisksarenotconsidered significant as the client is a government organisation. 

 

            Interest rate risk

ThefinancialriskmanagementobjectiveoftheCompanyistoensurethatfinancialrisksare mitigatedbytheuseoffinancialinstrumentswheretheycannotbeaddressedbymeansof contractualprovisions.Therearenoderivatives,risk     ismitigatedthroughafixedrateloan instrument. Financial instruments are not used for speculative purposes.  

 

Liquidity risk 
TheCompany'sliquidityriskisprincipallymanagedthroughfinancingtheCompanybymeansoflong- termborrowings,withanamortisationprofilethatmatchestheexpectedavailabilityoffundsfromthe Companyoperatingactivities.Inaddition,theCompanymaintainsreservebankaccountstoprovide short-term liquidity against future debt service and other expenditure requirements. 
TheCompanyhasanetliabilitypositionwhichiscausedbytherolledupsubordinateddebtinterest andprincipalamountsduetotheshareholders.Thisdoesnotcauseanissueforgoingconcern sincetheshareholdershavewaivedtheirrightstoreceiveinterestfortheyearto31/03/2019.As suchtheCompanyhastherequiredfundstomeetdebtobligationsastheyfalldueforthefollowing year. 
 

 

 

 

CONNECT M77/GSO PLC
Strategic Report 

for the year ended 31 March 2018 

 

 

Principal Risks and Uncertainties (continued) 

 

Contractual relationships 
TheCompanyoperateswithinacontractualrelationshipwith     itsprimarycustomer,East RenfrewshireCouncil.Asignificant    impairmentofthisrelationshipcouldhaveadirectand detrimentaleffectontheCompany'sresultsandcouldultimatelyresultinterminationofthe concession. 
TomanagethisrisktheCompanyhasregularmeetingswithEastRenfrewshireCouncilincluding discussions on performance, project progress, future plans and customer requirements. 

 

The Directors do not believe that the Company is exposed to any significant Financial Risk. The 
Company's principal activity as detailed above is low risk as all relationships with the customer, 
funders and sub-contractors within the Company in which it sits are determined by the terms of the  respective contracts. 

 

Future Developments 

 

TheDirectorsexpectthegenerallevelofactivitytoremainstableintheforthcomingyear.There havebeennootherchangestotheCompany'sactivitiesintheyearunderreviewandnoothersare currently contemplated. 

 

This report was approved by the board on   July 2018 and signed by its order. 

 

 

Patrick McCarthy 
Company Secretary 
 

 

 

 

CONNECT M77/GSO PLC
Registered number:04698798 

Directors' Report 

for the year ended 31 March 2018 

 

TheDirectorspresenttheirannualreporttogetherwiththeauditedfinancialstatementsofthe Company for the year ended 31 March 2018. 

The following information has been disclosed in the Strategic Report: 

1. Principal Activity and Business Review 

2. Key Performance Indicators 

3. Principal Risks and Uncertainties 

4. Indication of likely future developments in the business 

 

 

 

Theauditedfinancialstatementsfortheyearended31March2018aresetoutonpages9to24. The profit for the year after taxation was £286,000 (2017: profit £42,000). 

Thedirectorsdeclaredandpaiddividendsof£nil(2017:£nil).TheDirectorsexpecttheCompanyto continue its operations for the foreseeable future. 

 

 

TheCompany'sforecastsandprojections,takingaccountofreasonablepossiblechangesintrading performance,showthattheCompanyhasadequateresourcestocontinueinoperationalexistence fortheforeseeablefuture.Accordingly,theDirectorscontinuetoadoptthegoingconcernbasisin preparingthefinancialstatements.Furtherinformationisprovidedinnote1tothefinancial statements. 

 

Directors 

The following persons served as directors throughout the year and up to the date of this report: 

D. W. Bowler 

M. P. Mageean             

M. J. Edwards               

D. G. Blanchard             (appointed on 20/06/17) 

Directors' Indemnities 

 

The Company has made qualifying third party indemnity provisions for the benefit of its Directors which remain in   force at the date of this report.

 

 

Each of the persons who is a Director at the date of approval of this report confirms that: 

(i)sofarastheDirectorisaware,thereisnorelevantauditinformationofwhichtheCompany's auditor is unaware; and 

(ii)theDirectorhastakenallthestepsthatheoughttohavetakenasaDirectorinordertomake himselfawareofanyrelevantauditinformationandtoestablishthattheCompany'sauditorisaware of that information. 

 

This confirmation is given and should be interpreted in accordance with the provisions of s418 of the  Companies Act 2006. 

Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed 
and KPMG LLP will therefore continue in office. 
 

 

 

 

CONNECT M77/GSO PLC
Registered number:04698798 

Directors' Report 

for the year ended 31 March 2018 

 

This report was approved by the board on    July 2018 and signed by its order. 

 

 

Patrick McCarthy 
Company Secretary 
 

 

 

 

CONNECT M77/GSO PLC 

Statement of Directors' responsibilities in respect of the Stategic Report, the  Directors' Report and the Financial Statements 

ThedirectorsareresponsibleforpreparingtheStrategicReport,theDirectors'Reportandthe financial statements in accordance with applicable law and regulations.  

Companylawrequiresthedirectorstopreparefinancialstatementsforeachfinancialyear.Under thatlawtheyhaveelectedtopreparethefinancialstatementsinaccordancewithUKaccounting standardsandapplicablelaw(UKGenerallyAcceptedAccountingPractice),includingFRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland

Undercompanylawthedirectorsmustnotapprovethefinancialstatementsunlesstheyare satisfiedthattheygiveatrueandfairviewofthestateofaffairsofthecompanyandoftheprofitor lossofthecompanyforthatperiod.Inpreparingthesefinancialstatements,thedirectorsare required to:  

 

 

 

 

 

 

 

 

 

 

 

select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; 

statewhetherapplicableUKaccountingstandardshavebeenfollowed,subjecttoanymaterial departures disclosed and explained in the financial statements;  
assessthecompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,matters related to going concern; and  

usethegoingconcernbasisofaccountingunlesstheyeitherintendtoliquidatethecompanyor to cease operations, or have no realistic alternative but to do so.  

 

 

Thedirectorsareresponsibleforkeepingadequateaccountingrecordsthataresufficienttoshow andexplainthecompany'stransactionsanddisclosewithreasonableaccuracyatanytimethe financialpositionofthecompanyandenablethemtoensurethatthefinancialstatementscomply withtheCompaniesAct2006.Theyareresponsibleforsuchinternalcontrolastheydetermineis necessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterial misstatement,whetherduetofraudorerror,andhavegeneralresponsibilityfortakingsuchsteps asarereasonablyopentothemtosafeguardtheassetsofthecompanyandtopreventanddetect fraud and other irregularities.  
 

 

 

 

CONNECT M77/GSO PLC 

Independent auditor's report 

to the members of CONNECT M77/GSO PLC 

1      Our opinion is unmodified

WehaveauditedthefinancialstatementsofM77/GSOPlc("theCompany")fortheyearended31March2018which comprisetheProfitandLossAccount,theBalanceSheet,theStatementofChangesinEquityandtherelatednotes, including the accounting policies in note 1.  

 

In our opinion the financial statements:  

give a true and fair view of the state of Company's affairs as at 31 March 2018 and of its loss for the year then ended;  

 

 

 

 

havebeenproperlypreparedinaccordancewithUKaccountingstandards,includingFRS102TheFinancialReporting Standard applicable in the UK and Republic of Ireland; and  

have been prepared in accordance with the requirements of the Companies Act 2006.  

 

 

Basis of opinion

WeconductedourauditinaccordancewithInternationalStandardsonAuditing(UK)("ISAs(UK)")andapplicablelaw.Our responsibilitiesaredescribedbelow.Webelievethattheauditevidencewehaveobtainedisasufficientandappropriate basis for our opinion.  Our audit opinion is consistent with our report to the audit committee.  

Wewereappointedasauditorbythedirectorson17October2016.Theperiodoftotaluninterruptedengagementisforthe2 financialyearsended31March2018.Wehavefulfilledourethicalresponsibilitiesunder,andweremainindependentofthe Groupinaccordancewith,UKethicalrequirementsincludingtheFRCEthicalStandardasappliedtopublicinterestentities. No non-audit services prohibited by that standard were provided. 

 

2      Key audit matters: our assessment of material misstatement

Keyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceintheauditofthefinancial statementsandincludethemostsignificantassessedrisksofmaterialmisstatement(whetherornotduetofraud)identified byus,includingthosewhichhadthegreatesteffecton:theoverallauditstrategy;theallocationofresourcesintheaudit;and directingtheeffortsoftheengagementteam.Wesummarisebelowthekeyauditmatters,indecreasingorderofaudit significance,inarrivingatourauditopinionabove,togetherwithourkeyauditprocedurestoaddressthosemattersand,as requiredforpublicinterestentities,ourresultsfromthoseprocedures.Thesematterswereaddressed,andourresultsare basedonproceduresundertaken,inthecontextof,andsolelyforthepurposeof,ourauditofthefinancialstatementsasa whole,andinformingouropinionthereon,andconsequentlyareincidentaltothatopinion,andwedonotprovideaseparate opinion on these matters. 

 

            Service and income recognition

(£2,380; 2017: £2,245k) 

Refer to page 13 (accounting policy) and page 15 (financial disclosures). 

 

            The risk

Theamountofservicerevenuerecognisediscalculatedviaamark-upbeingappliedtocostsincurredduringtheyear.The mark-upisdeterminedfromalongtermfinancialmodelwhichactsasalongtermforecastoftherevenuesandcoststobe incurredontheproject.Asignificantportionoftheserviceprovisionandtheassociatedperformancerisk,areoutsourcedto subcontractorswithcostscontractuallyagreedoverthelifeofthecontract.Lifecyclereplacementriskremainswiththe Company and is a significant estimate. 

Afraudriskexistsasmanagementcouldmanipulatetheamountofrevenuerecognisedeitherthroughamendingthefuture forecastassumptions,particularlythroughthelifecyclecostswhichareakeyestimate(seenote7fordetails)andhence changethemark-upappliedtothecostsonwhichrevenueisrecognisedorbyapplyingthemark-uptocostswhicharenot related to the provision of the services under the concession contract. 

               Our response

Our procedures included: 
Servicerevenuerecalculation:Werecalculatedservicerevenuebaseduponthecostsincurredwhichrelateto 

provisionofservicesundertheconcessioncontractusingthemark-updeterminedinthefinancialforecastsand 
compared this to the amounts recorded. 
Comparingforecasts:Wechallengedtheappropriatenessofcostestimatesandassessedwhetherornotestimates 
showedanyevidenceofmanagementbias.Ourchallengewasbaseduponourassessmentofhistoricalaccuracyofthe 
Company'sforecaststhroughcomparisonofcurrentyearactualcosts,asampleofwhichhavebeenverifiedtosupplier 
invoices,versusprioryearforecast,comparisonofforecastcostestimatesincurrentyearversustheprioryearand 
expectations based on our knowledge of the Company and experience of the industry in which it operates. 
 

 

 

 

CONNECT M77/GSO PLC 

Independent auditor's report 

to the members of CONNECT M77/GSO PLC 

 

 

3 Our application of materiality an an overview of the scope of our audit

Materialityforthestatutoryfinancialstatementsasawholewassetat£720,000(2017:£750,000)determinedwithreference to a benchmark of total assets, of which it represents 0.5% (2017: 0.5%). 

WeagreedtoreporttotheAuditCommitteeanycorrectedoruncorrectedidentifiedmisstatementsexceeding£36,000(2017: £38,000),  in addition to other identified misstatements that warranted reporting on qualitative grounds. 

Our audit of the company was undertaken to the materiality level set out above and was performed at our offices in London. 

 

 

            4 We have nothing to report on going concern

Wearerequiredtoreporttoyouifwehaveconcludedthattheuseofthegoingconcernbasisofaccountingisinappropriate orthereisanundisclosedmaterialuncertaintythatmaycastsignificantdoubtovertheuseofthatbasisforaperiodofatleast twelve months from the date of approval of the financial statements.  We have nothing to report in these respects.  

 

            5 We have nothing to report on the strategic report and the directors report

Thedirectorsareresponsibleforthestrategicreportandthedirectors'report.Ouropiniononthefinancialstatementsdoes not cover those reports and we do not express an audit opinion thereon.  
Ourresponsibilityistoreadthestrategicreportandthedirectors'reportand,indoingso,considerwhether,basedonour financialstatementsauditwork,theinformationthereinismateriallymisstatedorinconsistentwiththefinancialstatementsor our audit knowledge.  Based solely on that work:  

we have not identified material misstatements in those reports;  
inouropiniontheinformationgiveninthestrategicreportandthedirectors'reportforthefinancialyearisconsistentwith 
the financial statements; and  

in our opinion those reports have been prepared in accordance with the Companies Act 2006.  

 

                 6 We have nothing to report on the other matters on which we are required to report by exception

Under the Companies Act 2006, we are required to report to you if, in our opinion:  
adequateaccountingrecordshavenotbeenkeptbytheCompany,orreturnsadequateforouraudithavenotbeen 

received from branches not visited by us; or  

 

we have not received all the information and explanations we require for our audit.   We have nothing to report in these respects.  

 

                7 Respective responsibilities Directors' responsibilities

Asexplainedmorefullyintheirstatementsetoutonpage6,theDirectorsareresponsiblefor:thepreparationofthefinancial statementsincludingbeingsatisfiedthattheygiveatrueandfairview;suchinternalcontrolastheydetermineisnecessaryto enablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror; assessingtheCompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcern; andusingthegoingconcernbasisofaccountingunlesstheyeitherintendtoliquidatetheCompanyortoceaseoperations,or have no realistic alternative but to do so.  
 

 

 

 

CONNECT M77/GSO PLC 

Independent auditor's report 

to the members of CONNECT M77/GSO PLC 

 

               Auditor's responsibilities

Ourobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsasawholearefreefrommaterial misstatement,whetherduetofraudorotherirregularities(seebelow),orerror,andtoissueouropinioninanauditor'sreport. Reasonableassuranceisahighlevelofassurance,butdoesnotguaranteethatanauditconductedinaccordancewithISAs (UK)willalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraud,otherirregularitiesor errorandareconsideredmaterialif,individuallyorinaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomic decisions of users taken on the basis of the financial statements.  

 

A fuller description of our responsibilities is provided on the FRC's website at www.frc.org.uk/auditorsresponsibilities.  

 

                Irregularities - ability to detect

Weidentifiedareasoflawsandregulationsthatcouldreasonablybeexpectedtohaveamaterialeffectonthefinancial statementsfromoursectorexperience,throughdiscussionwiththedirectorsandothermanagement(asrequiredbyauditing standards). 

Wehadregardtolawsandregulationsinareasthatdirectlyaffectthefinancialstatementsincludingfinancialreporting (includingrelatedcompanylegislation)andtaxationlegislation.Weconsideredtheextentofcompliancewiththoselawsand regulations as part of our procedures on the related financial statements items. 

Inadditionweconsideredtheimpactoflawsandregulationsinthespecificareasofhealthandsafety,regulatorycapitaland liquidityandcertainaspectsofcompanylegislationrecognisingthefinancialandregulatednatureofthecompany'sactivities anditslegalform.Withtheexceptionofanyknownorpossiblenon-compliance,andasrequiredbyauditingstandards,our workinrespectofthesewaslimitedtoenquiryofthedirectorsandothermanagementandinspectionofregulatoryandlegal correspondence.Weconsideredtheeffectofanyknownorpossiblenon-complianceintheseareasaspartofourprocedures on the related financial statements items. 

Wecommunicatedidentifiedlawsandregulationsthroughoutourteamandremainedalerttoanyindicationsofnon- compliance throughout the audit. 

Aswithanyaudit,thereremainedahigherriskofnon-detectionofnon-compliancewithrelevantlawsandregulations (irregularities)/irregularities,asthesemayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverride of internal controls. 

 

                8 The purpose of our audit work and to whom we owe our responsibilities

 

ThisreportismadesolelytotheCompany'smembers,asabody,inaccordancewithChapter3ofPart16oftheCompanies Act2006.OurauditworkhasbeenundertakensothatwemightstatetotheCompany'smembersthosemattersweare requiredtostatetotheminanauditor'sreportandfornootherpurpose.Tothefullestextentpermittedbylaw,wedonot acceptorassumeresponsibilitytoanyoneotherthantheCompanyandtheCompany'smembers,asabody,forouraudit work, for this report, or for the opinions we have formed.  

 

 

 

Tom Eve (Senior Statutory Auditor) 

for and on behalf of KPMG LLP, Statutory Auditor Chartered Accountants 

15 Canada Square 

London 

E14 5GL 

    July 2018 
 

 

 

 

CONNECT M77/GSO PLC 

Profit and Loss Account 

for the year ended 31 March 2018 

 

Notes                   2018                     2017 
£ '000                  £ '000 

Turnover                                                                        2                  2,380                   2,245 

Cost of sales                                                                                       (1,992)                 (1,902) 

Gross profit                                                                                           388                      343 

Administrative expenses                                                                         (281)                    (240) 

Operating profit                                                              3                     107                      103 

 

Interest receivable and similar income                                4                  9,610                   9,718 Interest payable and other expenses                                  5                 (9,750)                 (9,882) 

 

(Loss) before taxation                                                                            (33)                      (61) 

 

 

Tax on (loss) 

 

 

6                         1                      103 

 

 

                 (Loss)/profit for the financial year                                                         (32)                       42 

 

 

 

 

TherewerenoitemsrecognisedinOtherComprehensiveIncomeineitheryearotherthanthe reportedprofit/(loss)shownabove;consequentlynoseparatestatementofothercomprehensive income is presented. 
 

 

 

 

CONNECT M77/GSO PLC Balance Sheet 

as at 31 March 2018 

 

 

 

Current assets 

Financial asset: amounts falling due within one year                      7                   1,073                                      1,265 Debtors: due within one year                                                                 8                      148                                         117 Investments: due within one year                                                         9                 16,867                                   15,944 Cash and cash equivalents                                                                                        3,009                                    3,030 

21,097                                20,356 

Non-current assets 

Financial asset: amounts falling due after one year                         7               122,820                                 124,002 

122,820                              124,002 

Total Assets                                                                                                              143,917                                 144,358 

 

Current liabilities 

Creditors: due within in one year                                                        10                  (6,366)                                   (5,080) Total current liabilities                                                                                                 (6,366)                                   (5,080) 

Non-current liabilities 

Creditors: due after one year                                                               11             (165,126)                              (166,816) Deferred tax liability                                                                               11                  (1,552)                                   (1,557) Total non-current liabilities                                                                                    (166,678)                              (168,373) 

Total liabilities                                                                                                         (173,044)                              (173,453) Net Liabilities                                                                                                                     (29,127)                                (29,095) 

 

Capital and reserves 

Called up share capital                                                                        13                         50                                            50 Profit and loss account                                                                                             (29,177)                                 (29,145) 

Shareholders' deficit                                                                                               (29,127)                                 (29,095) 

 

These financial statements for Connect M77/GSO plc, company registration number 04698798, were approved  by the Board of Directors and authorised for issue on    July 2018 and signed on its behalf by: 

 

 

David Blanchard 

Director 

Approved by the board on    July 2018 
 

 

 

 

CONNECT M77/GSO PLC 
Statements of Changes in Equity for the year ended 31 March 2018 

 

 

Proift and 
Loss 

account                Total 
£ '000               £ '000               £ '000 

At 31 March 2016                                                                       50             (29,187)            (29,137) 

Profit for the year                                                                           -                    42                    42 

At 31 March 2017                                                                       50             (29,145)            (29,095) 

(Loss) for the year                                                                         -                   (32)                  (32) 

At 31 March 2018                                                                       50             (29,177)            (29,127) 
 

 

 

                        Connect M77 GSO PLC

                        Notes to the Financial Statements

                        For the year ended 31 March 2018

 

                        1 Accounting policies

 

a)     Basis of preparation

 

ThesefinancialstatementshavebeenpreparedinaccordancewithFRS102TheFinancialReporting StandardapplicableintheUKandRepublicofIreland("FRS102")andtherequirementsoftheCompanies Act 2006. The amendments issued to FRS 102 in July 2015 have been applied. 

       

Thefinancialstatementsarepreparedinsterling,whichisthefunctionalcurrencyoftheCompany.Monetary amounts in these financial statements are rounded to the nearest £'000. 

TheCompany'sparentundertaking,ConnectM77/GSOHoldingsLimitedincludestheCompanyinits consolidatedfinancialstatements.TheconsolidatedfinancialstatementsofConnectM77/GSOHoldings Limited are available to the public and may be obtained from the address in note 15. 

Inthesefinancialstatements,thecompanyisconsideredtobeaqualifyingentity(forthepurposesofthis FRS)andhasappliedtheexemptionsavailableunderFRS102inrespectofthepreparationofaCashFlow Statement and related notes. 

AstheconsolidatedfinancialstatementsofConnectM77/GSOHoldingsLimitedincludetheequivalent disclosures,theCompanyhasalsotakentheexemptionsunderFRS102availableinrespectofthefollowing disclosures: 

ThedisclosuresrequiredbyFRS102.11BasicFinancialInstrumentsandFRS102.12OtherFinancial InstrumentIssuesinrespectoffinancialinstrumentsnotfallingwithinthefairvalueaccountingrulesof Paragraph 36(4) of Schedule 1. 

TheCompanyproposestocontinuetoadoptthereduceddisclosureframeworkofFRS102initsnext financial statements. 

Theaccountingpoliciessetoutbelowhave,unlessotherwisestated,beenappliedconsistentlytoallperiods presented in these financial statements. 

  

Thefinancialstatementshavebeenpreparedonthehistoricalcostconvention.Theprincipalaccounting policies adopted are set out below.   

 

 

b)     Going Concern

Thecurrenteconomicconditionscreatesomegeneraluncertainty.TheDirectorshavereviewedthe Company'ssupplychainanddonotbelievethatanyspecificriskhasbeenidentified.TheDirectorshave alsoconsideredtheabilityoftheAuthoritytocontinuetopayunitaryfeesdueundertheconcessioncontract totheCompany'ssubsidiaryanddonotconsiderthistobeamaterialrisk.TheCompany'sforecastsand projections,takingaccountofreasonablypossiblecounterpartyperformance,showtheCompanyexpectsto beabletocontinuetooperateforthefulltermoftheconcession.DespitetheCompanyshowingnetliabilities theCompany'sprojections,takingaccountofreasonablypossiblecounterpartyperformance,showthatthe Companyexpectstobeabletocontinuetooperatefortheforeseeablefuture.Accordingly,theycontinueto adopt the going concern basis in preparing the annual report and financial statements. 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

                        1 Accounting policies (continued)

c)     Financial Asset and Service Revenue

 

TheCompanyaccountsasafinancialassetinaccordancetoSection11ofFRS102forabasicfinancial instrument and is measured at amortised cost.
Intheoperationalphase,revenueisrecognisedbyallocatingaproportionoftotalunitaryincomereceivable overthelifeoftheprojecttoservicecostsbymeansofadeemedconstantrateofreturnonthesecosts. Revenueisrecognisedbyapplyinga5%mark-up%ontheoperationalcosts,representingthefairvalueof operational services. 

d) Other Financial Assets 
TheCompanyhaselectedtoapplytheprovisionsofSection11'BasicFinancialInstruments'andSection12 'OtherFinancialInstrumentsIssues'ofFRS102toallofitsfinancialinstruments.Financialassetsare recognisedintheCompany'sbalancesheetwhentheCompanybecomespartytothecontractualprovisions of the instrument. 

Financialassetshavebeenclassifiedas'loansandreceivables',whichincludescashandcashequivalents. Theclassificationdependsonthenatureandpurposeofthefinancialassetsandisdeterminedatthetimeof recognition. 

Basicfinancialassets,whichincludetradeandotherreceivablesandcashandbankbalances,areinitially measuredattransactionpriceincludingtransactioncostsandaresubsequentlycarriedatamortisedcost usingtheeffectiveinterestmethod,unlessthearrangementconstitutesafinancingtransaction,wherethe transactionismeasuredatthepresentvalueofthefuturereceiptsdiscountedatamarketrateofinterest. Other financial assets classified as fair value through profit or loss are measured at fair value.        

Tradereceivablesandotherreceivablesthathavefixedordeterminablepaymentsthatarenotquotedinan activemarketarealsoclassifiedas     'loansandreceivables'.Loansandreceivablesaremeasuredat amortisedcostusingtheeffectiveinterestratemethod,lessanyimpairment.Interestincomeisrecognisedby applyingtheeffectiveinterestrateexceptforshorttermreceivableswheretherecognitionofinterestwould be immaterial. 

Cashandcashequivalentscomprisecashonhand,demanddeposits,andothershorttermhighlyliquid investments, that are readily convertible into cash and are subject to an insignificant risk of change in value. 

Financialassetsareimpairedwherethereisobjectiveevidencethatasaresultofoneormoreeventsthat haveoccurredaftertheinitialrecognitionofthefinancialasset,theestimatedfuturecashflowshavebeen impacted.Thecarryingamountofafinancialassetisreducedbytheimpairmentdirectlywiththeexceptionof tradereceivableswhichwouldbereducedthroughtheuseofanallowanceaccount,unlessitisconsidered that it is uncollectible. 

 

TheCompanyderecognisesafinancialassetonlywhenthecontractualrightstoreceivethecashflowsfrom theassetexpire,orittransfersthefinancialassetandsubstantiallyalltheriskandrewardsofownershipof the asset to another entity. 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

                        Accounting policies (continued)

e)Financial Liabilities

 

Financialliabilitiesandequityareclassifiedaccordingtothesubstanceofthecontractualarrangements enteredinto.Financialliabilities,includingborrowings,areinitiallymeasuredatfairvalue,netoftransaction costsandaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestratemethod,withinterest expenserecognisedonaneffectiveyieldbasis.TheCompanyderecognisesitsfinancialliabilitieswhenthe Company's obligations are discharged, cancelled or they expire. 

Theeffectiveinterestratemethodisamethodofcalculatingamortisedcostsofthefinancialliabilitiesand allocatinginterestexpenseovertherelevantperiod.Theeffectiveinterestrateistheratethatexactly discounts the estimated future cash payments through the expected life of the financial liabilities. 

 

 

                                f) Taxation

Currenttaxisprovidedatamountsexpectedtobepaidorrecoveredusingthetaxratesandlawsthathave beenenacted,orsubstantivelyenacted,bythebalancesheetdate.Deferredtaxisprovidedinfullontiming differenceswhichresultinanobligationatthebalancesheetdatetopaymoretax,orarighttopaylesstax, atafuturedate,atratesexpectedtoapplywhentheycrystallisebasedoncurrenttaxratesandlaw.Timing differencesarisefromtheinclusionofitemsofincomeandexpenditureintaxationcomputationsinperiods differentfromthoseinwhichtheyareincludedinfinancialstatements.Unrelievedtaxlossesandother deferredtaxassetsarerecognisedonlytotheextentthat,onthebasisofallavailableevidence,itcanbe regardedasmorelikelythannottherewillbesuitabletaxableprofitsfromwhichthefuturereversalofthe underlying timing differences can be deducted. 

Deferredtaxismeasuredusingthetaxratesandlawsthathavebeenenactedorsubstantivelyenactedby the balance sheet date that are expected to apply to the reversal of the timing difference. 

Whereitemsrecognisedinothercomprehensiveincomeorequityarechargeabletoordeductiblefortax purposes,theresultingcurrentordeferredtaxexpenseorincomeispresentedinthesamecomponentof comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 

 

 

g) Finance Costs

Financecostsinrelationtothefixedrateseniorsecuredbondsandthesecuredloanstockarerecognised usingtheeffectiveinterestratemethodunderFRS102wherebyexpectedinterestoverthelifeoftheproject is spread and recognised in each period. 

Finance assets and financial liabilities
FinancialassetsandfinancialliabilitiesarerecognisedintheCompany'sbalancesheetwhentheCompany becomes party to the contractual provisions of the instrument. 

Financialassetshavebeenclassifiedas'loansandreceivables',whichincludescashandcashequivalents, based on the nature and purpose of the financial assets. 

 

h) Fixed rate senior secured bonds

 

Seniorsecuredbondsareinitiallystatedattheamountofthenetproceedsafterdeductionofrelatedissue costs.Thecarryingamountisincreasedbythefinancecostinrespectoftheaccountingperiodandreduced by payments made in that period. 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

 

                        1 Accounting policies (continued)

i)              Critical accounting judgements and key sources of estimation uncertainty

Critical judgements

IntheapplicationoftheCompany'saccountingpolicies,thedirectorsarerequiredtomakejudgements, estimatesandassumptionsaboutthecarryingamountofassetsandliabilitiesthatarenotreadilyapparent fromothersources.Theestimatesandassociatedassumptionsarebasedonhistoricalexperienceandother factors that are considered to be relevant. Actual results may differ from these estimates. 

Key sources of estimation uncertainty

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoaccounting estimatesarerecognisedintheperiodinwhichtheestimateisrevisedwheretherevisionaffectsonlythat period,orintheperiodoftherevisionandfutureperiodswheretherevisionaffectsbothcurrentandfuture periods. 

Theestimatesandassumptionswhichhaveasignificantriskofcausingamaterialadjustmenttothecarrying amount of assets and liabilities are as follows. 

 

 

                        Service concession arrangement

TheCompanyaccountsfortheprojectasaserviceconcessionarrangement.Thedirectorshaveusedtheir judgementinselectingtheappropriateaccountingbasisfortheconcession.Asthepaymentmechanismis nowbasedonafixedusuage,theDirectorsdeemeditsuitablefortheaccountingbasistobechangedfroma fixedassettoafinancialassetasat31stMarch2016.Thedirectorsusetheirjudgementinselectingthe appropriatefinancialassetratetobeappliedinordertoallocatetheincomereceivedbetweenrevenue,and capitalrepaymentofandinterestincomeonthefinancialasset;andalsotheservicemarginthatisusedto recogniseservicerevenue.Thedirectorshavealsousedtheirjudgementinassessingtheappropriateness ofthefuturemaintenancecoststhatareincludedintheCompany'sforecasts.Thedirectorswillcontinueto monitor the condition of the assets and undertake a regular review of maintenance spend. 

 

 

 

                        2 Analysis of turnover

                        Turnover

                        Turnover by origin and destination

2018                2017 
£ '000              £ '000 

United Kingdom                                                                                                                           2,380               2,245 
2,380               2,245 

All activities are from continuing operations in the United Kingdom. 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

                        3 Operating Profit

                        Operating profit is stated after charging

 

2018                2017 
£ '000              £ '000 

18                       13 
Fees payable to the Company's auditor for the audit of the Company's annual financial statements FeesTotal audit fees                                                                                                                                                             

18                       13

 

TheDirectorsreceivednosalary,feesorotherbenefitsintheperformanceoftheirdutiesinthecurrentand precedingyear.AllstaffcostsarebornebytheshareholdersofConnectM77/GSOHoldingsLimitedwho secondemployeestotheCompanyandchargerelatedservicecosts.TheCompanyhadnoemployees during the year (2017: none). 

TheauditfeefortheCompanywasamountedto£18,000payabletoKPMGLLP(2017:£13,000payableto KPMG LLP). 

4     Interest receivable and similar income                                                                                2018                 2017 
£ '000              £ '000 

Interest on bank accounts and deposits                                                                                      12                     61 
Finance income                                                                                                                           9,598               9,657 

9,610              9,718 

5     Interest payable and other expenses                                                                                    2018                 2017 
£ '000              £ '000 

Secured bond interest                                                                                                                7,708               7,376 
Secured loan stock interest                                                                                                      2,042               2,506 
Total interest payable and similar charges                                                                           9,750               9,882 

6Tax (charge)/credit on profit/(loss) 

The tax (charge)/credit is based on the profit/(loss) for the year and comprises: 

 

 

Current tax 

Corporation tax due                                                                                                                             -                        - Corporation Tax charge in respect of previous years                                                                 (4)                      - Total current tax                                                                                                                                  (4)                      - 

Deferred tax 

Tax on current year losses deferred                                                                                               6                     12 Effect of changes in tax rate                                                                                                             (1)                   91 Total deferred tax                                                                                                                               5                   103 

Total tax (charge)/credit on profit/(loss)                                                                                          1                   103 

The difference between the total current tax shown above and the amount calculated by applying the 
standard rate of UK corporation tax to the profit/(loss) before tax is as follows: 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

 

6Tax (charge)/credit on profit/(loss) (continued) 

 

 

(Loss) before tax 

Tax on (loss) on ordinary activities at standard UK corporation  tax rate of 19% 

 

 

 

 

 

 

 

 

 

 

2018                2017  £ '000               £ '000 

(33)                  (61) 
6                     12 

 

 

Effects of: 

Adjustments to tax charge in respect of previous years                                                             (4)                      - Changes in tax rate                                                                                                                           (1)                   91 

1                 103 

7Financial Asset                                                                                                                            2018                 2017 
£ '000              £ '000 

Opening balance                                                                                                                    125,268          126,547 
Service Income received in the year                                                                                     (14,078)          (13,826) 
Operating revenues                                                                                                                    2,259               2,148 
Lifecycle replacement costs                                                                                                         846                  742 

Notional interest                                                                                                                          9,598               9,657 
Closing Balance                                                                                                                     123,893          125,268 

 

 

Comprising: 

Amounts falling due within one year                                                                                       1,073               1,265 Amounts falling due after more than one year                                                                  122,820          124,002 

123,893          125,267 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

8Debtors 

 

Due within one year: 

Trade debtors                                                                                                                                 148               116 

148              116 

9     Investments - due within one year 

Investmentsduewithinoneyearrepresentamountsheldondeposit>3monthswithafinancialinstitution whicharenotavailableforwithdrawalwithinthattimeand,inaccordancewiththeCompany'sfunding arrangements, are restricted and cannot be used to fund the on-going operations of the Company. 

There are £nil amounts held on deposit > 3 months. 
Restricted cash includes: 

Debt Service Reserve: £8,509K (2017: £8,133K) 
Tax Reserve: £8,358K (2017: £7,811K) 

10Creditors: due within one year 

2018                2017 
£ '000              £ '000 

Trade creditors                                                                                                                                190                  101 Accruals                                                                                                                                        1,705               1,538 VAT payable                                                                                                                                             205                  184 Fixed rate guaranteed senior secured bonds                                                                       3,911               3,257 Corporation tax payable                                                                                                                355                       - 

6,366                  5,080 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

11Creditors: due after more than one year 

2018                2017 
£ '000              £ '000 

Fixed rate guaranteed senior secured bonds                                                                   126,504          130,236 
126,504          130,236 

Secured loan stock                                                                                                                   14,865             14,865 Secured loan stock interest                                                                                                    23,757             21,715 

38,622           36,580 

165,126         166,816 

                        Deferred taxation

2018                2017 
£ '000              £ '000 

Opening deferred tax asset/(liability)                                                                                      (1,557)            (1,660) Current year credit to the statement of comprehensive income                                                6                     12 Current year disallowed depreciation                                                                                              -                        - Utilisation of losses                                                                                                                            -                        - Effect of change in tax rate                                                                                                               (1)                    91 Closing deferred tax asset/(liability)                                                                                       (1,552)            (1,557) 

 

                                                                                                At 1 April2017  Movement in the year At 31March 2018 

Trading losses                                                                                                        10                       5                     15 Capitalised Interest                                                                                          (1,567)                     -              (1,567) 

(1,557)                    5               (1,552) 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

11Creditors: amounts falling due after more than one year (continued) 

Fixedrateguaranteedseniorsecuredbondsdue2034of£152,429,000wereissuedon7May2003.The bondshavebeenunconditionallyandirrevocablyguaranteedbySyncoraGuarantee(UK)Limited(formerly XL Capital Assurance (UK) Limited) for payment of principal and interest. 

Interestonthebondsispayablesemi-annuallyinarrearson31Marchand30Septemberineachyearata fixed rate of 5.404% per annum commencing on 30 September 2003. 

Unlesspreviouslyredeemedorpurchasedandcancelled,thebondswillmatureon31March2034andare subjecttoredemptioninpartfrom,andincluding,30September2006inaccordancewiththeamortisation schedule set out in the bonds offering circular. 

Thesecuredloanstockbearsinterestat12.1%perannumandaccruesfromthedateoffinalcompletion.It isredeemableininstalmentsbetween2015and2035,orastheCompanyelects,butsubjecttocertain restrictionsinthecollateraldeed.ThesecuredloanstockissuedbytheCompanyisheldbytheCompany's immediateparentcompanies.TheCompany'simmediateparentcompanieshavewaivedtheirrightsto receive interest within 12 months for the years ending 31 March 2017 and 31 March 2018. 

AllborrowingscontaineitherafixedorvaryingsecurityinterestovertheassetsoftheCompany,asdefined by an intercreditor agreement.  The bonds have certain covenants attached. 

Fixedrateguaranteedseniorsecuredbondsarestatednetofunamortisedissuecostsof£2,172,000(2017: £2,351,000).TheCompanyincurredtotalissuecostsof£4,403,000inrespectofthefixedratebonds.These costs,togetherwiththeinterestexpense,areallocatedtotheprofitandlossamountoverthetermofthe bonds. Interest is calculated using the effective interest rate method. 

TheCompanyhascommittedborrowingfacilitiesavailableof£167,294,000whichhavebeenfullydrawnas at 31 March 2018 (2017 - £167,294,000). 

 

2018                2017 
£ '000              £ '000 

Fixed rate guaranteed senior secured bonds                                                                   132,587          135,844 Secured loan stock                                                                                                                   14,865            14,865 

147,452          150,709 

                        The borrowings are paid as follows

2018                2017 
£ '000              £ '000 

Repayable within one year                                                                                                        3,911               3,257 Repayable between one and two years                                                                                 4,344               3,911 Repayable between two and five years                                                                                15,880             14,458 Repayable after five years                                                                                                     123,317          129,083 

147,452          150,709 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

                   12 Financial instruments and derivatives

TheCompany'sfinancialinstrumentsareshowninthetablebelow.Themainpurposeofthesefinancial instrumentsistoraisefinancefortheconstructionandoperationoftheDBFOroads.TheCompanyhasnot enteredintoderivativetransactions.Itis,andhasbeenthroughouttheyearunderreview,theCompany's policythatnotradinginfinancialinstrumentsshallbeundertaken.Themainrisksarisingfromthe Company'sfinancialinstrumentsaremarket,creditandliquidityrisk.TheBoardreviewsandagreespolicies formanagingeachoftheserisksandtheyaresummarisedbelow.TheCompanyhasnoforeigncurrency transactions. All the Company's borrowings are denominated in sterling. 

 

Credit risk 

TheCompany'sprincipalfinancialassetsarecashandshort-termdepositsandtradeandotherreceivables. Thecreditandcashflowrisksarenotconsideredsignificantastheclientisaquasi-governmental organisation. 

Forcashandshort-termdeposits,onlyindependentlyratedcounterpartieswithaminimummediumterm seniordebtratingofatleastAfromStandard&PoorsandA3fromMoody'sareaccepted.Themaximum exposure to credit risk is the carrying value of the financial assets in the table above. 

Interest rate risk 

TheCompanyhasnoexposuretointerestrateriskasallitsborrowingsareatafixedrateofinterest.The fixedratebondshaveinterestpayableat5.404%perannumandthesecuredloanstockhasinterestpayable at12.1%perannum.InterestrateriskarisesontheCompany'scashandshorttermdeposits.A50basis pointincrease/decreaseintheinterestrateoneachtermdepositheldwouldleadtoanincrease/decreaseof £80,071 (2017: £94,444) in the Company's net interest receivable. 

Liquidity risk 

TheCompany'sliquidityriskisprincipallymanagedthroughfinancingtheCompanybymeansoflongterm borrowingswithanamortisingprofilethatmatchestheexpectedavailabilityoffundsfromtheCompany's operating activities. 

Financial liabilities gross maturity 

ThefollowingtabledetailstheCompany'sremainingcontractualmaturitiesforitsfinancialliabilities.The tablehasbeendrawnupbasedontheundiscountedcashflowsoffinancialliabilitiesbasedontheearliest dateonwhichtheCompanycanberequiredtomakepayments.Thetableincludesbothinterestand principal cash flows. 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

12Financial instruments and derivatives (continued) 

 

                Non-derivative financial liabilities gross maturity                        Other                     Other     Total nonderivative

Borrowings financial         liabilities

                     liabilities

2018                2018                2018 
£ '000              £ '000              £ '000 

Due on demand or within one year                                                            (11,251)                      -            (11,251) Due within one to two years                                                                         (11,459)                      -            (11,459) Due within two to five years                                                                          (35,625)                      -            (35,625) Due after more than five years                                                                   (190,892)                      -          (190,892) 

(249,227)                     -   (249,227) 

 

Other                                Other         Total

Borrowings     financial Non

                           Liabilities derivative

                                             liabilities

2017                2017                2017 
£ '000              £ '000              £ '000 

Due on demand or within one year                                                            (10,789)                (100)          (10,889) Due within one to two years                                                                         (11,251)                      -            (11,251) Due within two to five years                                                                          (35,029)                      -            (35,029) Due after more than five years                                                                   (202,947)                      -          (202,947) 

(260,016)                 (100)      (260,116) 

Capital risk management 

TheCompanymanagesitscapitaltoensureitsabilitytocontinueasagoingconcern,tomeetthe requirementsofitscollateraldeedandtomaintainanoptimalcapitalstructuretoreducethecostofcapital. ThecapitalstructureoftheCompanycomprisesequityattributabletoequityholdersconsistingofordinary sharecapitalandprofitandlossaccountasdisclosedinNote13andcashandcashequivalentsand borrowingsasdisclosedinNotes10,11and12.TheCompanyhascompliedwithcapitalrequirements imposedbythecollateraldeedthroughouttheyear.TherehavebeennochangesintheCompany's management of capital from previous years. 

13Called-up share capital                                                                                                             2018                 2017 
£ '000              £ '000 

Allotted, called-up and fully paid 

 42,500 class A ordinary shares of £1 each                                                                                43                     43 
7,500 class B ordinary shares of £1 each                                                                                     7                       7 

50                  50 

 

 

The shareholders' percentage holdings in the Company at 31 March 2018 are as follows: 

Balfour Beatty Infrastructure Investments Limited Class A ordinary share 100%

Cricketdrift Limited Class B ordinary shares 100%

Both classes of equity rank 'pari passu' in respect of voting, dividends and other rights. 
 

 

 

 

CONNECT M77/GSO PLC 

Notes to the Financial Statements for the year ended 31 March 2018 

 

14Capital commitments                                                                                                                2018                 2017 
£ '000              £ '000 

Contracted but not provided for                                                                                                         -                     75 
-                     75 

 

                        15 Ultimate parent companies and controlling parties

TheCompany'simmediateparentcompanyisConnectM77HoldingsLimited,whichisincorporatedinGreat BritainandregisteredinEnglandandWales.Theultimateparentcompaniesandcontrollingpartiesare BalfourBeattyplcandBIIFLP(actingbyitsmanager,3iBIFMInvestmentsLtd)whichareincorporatedinthe UnitedKingdomandregisteredinEnglandandWales.Theregisteredofficesofthecontrollingpartiesare5 Churchill Place, Canary Wharf, London, E14 5HU and 16 Palace Street, London, SW1E 5JD  respectively. 

TheCompanyisawholly-ownedsubsidiaryofConnectM77HoldingsLimitedwhichisregisteredinEngland andWales.The      largestandsmallestCompanyinwhichtheresultsofConnectM77/GSOplcare consolidatedisConnectM77/GSOHoldingsLimited,copiesofwhosefinancialstatementsareavailablefrom it's registered office; 350 Euston Road, London NW1 3AX. 

16Related party transactions                                                                                                      2018                 2017 
£ '000              £ '000 

Balfour Beatty Civil Engineering - operation and maintenance                                         2,765               2,734 
Balfour Beatty Investments - staff secondment charges                                                        162                  136 

2,927             2,870 

Outstanding balances at the end of the year 

Balfour Beatty Civil Engineering - operation and maintenance                                             139                  146 
Balfour Beatty Investments - staff secondment charges                                                        926                  764 

1,065                910 

 

 


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