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ENW Finance plc (55VR)

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Thursday 23 November, 2017

ENW Finance plc

Half-year Report

RNS Number : 3993X
ENW Finance plc
23 November 2017
 

ENW Finance Plc (the "Company") is pleased to announce its Half Year Financial

Report for the period ended 30 September 2017.

 

The Half Year Report is available to view on the Company's website:

https://www.enwl.co.uk/about-us/news/stock-exchange-announcements.

 

For further information please contact Electricity North West's press office on 0844 209 1957

or email [email protected].

 

  

Company Registration No. 06845434

 

 

ENW FINANCE PLC

Half Year Condensed Financial Statements

for the period ended 30 September 2017

 


 

  

 


Contents

 

Interim Management Report                                                                                                                  1

Condensed Profit and Loss Account                                                                                                      3

Condensed Balance Sheet                                                                                                                    4

Condensed Statement of Changes in Equity                                                                                           5

Notes to the Half Year Condensed Financial Statements                                                                         6

 


Interim Management Report

Cautionary statement

This interim management report contains certain forward-looking statements with respect to the financial condition and business of ENW Finance plc (the 'Company'). Statements or forecasts relating to events in the future necessarily involve risk and uncertainty and are made by the Directors in good faith based on the information available at the date of signature of this report. The Company undertakes no obligation to update these forward-looking statements. Nothing in this unaudited interim management report should be construed as a profit forecast nor should past performance be relied upon as a guide to future performance.

Directors

The names of the Directors who held office during the period and subsequently are given below:

Peter Emery

David Brocksom

Chris Dowling

John Lynch

Niall Mills

Operations

The principal activity of the Company is that of a financing company within the North West Electricity Networks (Jersey) Limited group (the 'Group') and the Company has debt in issue and listed on the London Stock Exchange.

There have been no significant changes to the activity of the Company in the current period.

Results

The results for the period are included in the Condensed Profit and Loss Account on page 3.

There have been no significant events in the 6 months ended 30 September 2017 in respect of the Company.


Principal risks and uncertainties

The principal risks and uncertainties have not changed from the last annual report. As the Company's obligations in respect of the listed debt are met via income receivable from Electricity North West Ltd ('ENWL'), the Board considers the principal risks and uncertainties facing the Company to be those that affect ENWL and the larger Group.

The principal trade and activities of the Group are carried out by ENWL and a comprehensive review of the strategy and operating model, the regulatory environment, the resources and principal risks and uncertainties facing that Company, and ultimately the Group, are discussed in the ENWL Annual Report and Consolidated Financial Statements for the year ended 31 March 2017. 

The Annual Reports and Consolidated Financial Statements of ENWL and the Company can be found at www.enwl.co.uk.

Going concern

After making enquiries, and based on the assumptions, sensitivities and uncertainties outlined in the accounting policies on pages 6 and 7, the Directors have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. 

For this reason, they continue to adopt the going concern basis in preparing the Half Year Condensed Financial Statements.


Interim Management Report (continued)

Responsibility statement

We confirm that to the best of our knowledge:

a.   the condensed set of financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer as required by DTR 4.2.4R;

b.   the interim management report includes a fair review of the information required by DTR 4.2.7R; and

c.   the condensed set of financial statements has been prepared in accordance with IAS 34 'Interim Financial Reporting'.

 

Registered address 

ENW Finance Plc

304 Bridgewater Place

Birchwood Park

Warrington

WA3 6XG

 

Approved by the Board of Directors and signed on its behalf:

 

 

 

D Brocksom

Chief Financial Officer

22 November 2017

 

 



 

Condensed Profit and Loss Account

For the period ended 30 September 2017

 


Note

Unaudited

Period ended 30 September

2017

£000

Unaudited

Period ended 30 September

2016

£000

Audited

Year ended

31 March 2017

£000






Operating profit


-

-

-






Interest receivable and similar income

3

6,414

6,419

12,809






Interest payable and similar charges

4

(5,296)

(5,436)

(10,671)








 

 

 

Profit on ordinary activities before taxation


1,118

983

2,138






Taxation

5

(285)

(212)

(511)



 

 

 

Profit for the financial period/year  shareholders


833

771

1,627



 

 

 

 

All the results shown in the Condensed Profit and Loss Account, for each period, derive from continuing operations.

There were no other items of comprehensive income, other than the results shown above, and therefore no separate Condensed Statement of Comprehensive Income has been presented.

 

 

 



Condensed Balance Sheet

as at 30 September 2017

 


Note

Unaudited Period ended

30 September

2017

£000

Unaudited Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000

ASSETS





Fixed assets





Derivative financial instruments

10

292,513

322,469

310,728

Loans to group undertakings

6

219,782

219,624

219,686



 

 

 



512,295

542,093

  530,414



 

 

 

Current assets





Amounts owed by group undertakings

7

6,245

5,849

6,052

Cash at bank and in hand


12

12

12



 

 

 



6,257

5,861

6,064



 

 

 

Total assets


518,552

547,954

536,478



 

 

 

LIABILITIES





Current liabilities





Creditors: Amounts falling due within one year

8

(6,160)

(5,774)

(5,971)



 

 

 

Net current assets


97

87

93






Total assets less current liabilities


512,769

542,180

530,507






Non-current liabilities





Borrowings

9

(199,281)

(199,124)

(199,186)

Derivative financial instruments

10

(299,803)

(331,636)

(318,943)

Deferred tax


(1,253)

(1,054)

(1,156)



 

 

 



(500,337)

(531,814)

(519,285)



 

 

 

Total liabilities


(506,497)

(537,588)

(525,256)



 

 

 

Net assets


12,055

10,366

11,222



 

 

 

CAPITAL AND RESERVES





Called up share capital


13

13

13

Profit and loss account


12,042

10,353

11,209



 

 

 

Total shareholders' funds


12,055

10,366

11,222



 

 

 

 

The half-year condensed financial statements of ENW Finance plc (registered number 06845434) were approved and authorised for issue by the Board of Directors on 22 November 2017 and signed on its behalf by:

 

 

D Brocksom

Director


Condensed Statement of Changes in Equity

For the period ended 30 September 2017

 


Called up share capital    

 £000

Profit and loss account   

£000

Total equity   

£000





At 1 April 2016

13

9,582

9,595





Profit for the financial period

-

771

771


              

              

              

At 30 September 2016 (unaudited)

13

10,353

10,366


              

              

              





At 1 April 2016

13

9,582

9,595





Profit for the financial year

-

1,627

1,627


              

              

              

At 31 March 2017 (audited)

13

11,209

11,222





Profit for the financial period

-

833

833





At 30 September 2017 (unaudited)

13

12,042

12,055


              

              

              

 

 


Notes to the Half Year Condensed Financial Statements

 1         General information

The financial information for the 6 month period ended 30 September 2017 and similarly the period ended 30 September 2016 has neither been audited nor reviewed by the auditor. The financial information for the year ended 31 March 2017 has been based on information in the audited financial statements for that year.

The financial information for the year ended 31 March 2017 does not constitute the statutory financial statements for that year (as defined in s434 of the Companies Act 2006), but is derived from those financial statements. Statutory financial statements for 31 March 2017 have been delivered to the Registrar of Companies. The auditor reported on those financial statements: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under s498(2) or s498(3) Companies Act 2006.

Significant accounting policies

Basis of preparation

The Company has adopted Financial Reporting Standard 101 'Reduced Disclosure Framework' ("FRS 101"), on the basis that it meets the definition of qualifying entity under Financial Reporting Standard 100 'Application of Financial Reporting Requirements' ("FRS 100"). The Annual Report and Financial Statements have therefore been prepared in accordance with FRS 101, as issued by the Financial Reporting Council. The Half Year Condensed Financial Statements of the Company have been prepared in accordance with FRS 104, 'Interim Financial Reporting'.

As permitted by FRS 101 and FRS 104, for all periods presented, the Company has taken advantage of the disclosure exemptions available under FRS 101 in relation to financial instruments, capital management, presentation of cash flow statement, standards not yet effective and related party transactions with other wholly-owned members of the Group.

Where relevant, equivalent disclosures are given in the consolidated financial statements of North West Electricity Networks plc, the Company's immediate parent; the consolidated financial statements of North West Electricity Networks plc are available to the public and are available on the website www.enwl.co.uk.

The results for the period ended 30 September 2017 have been prepared using the same methods of computation and on the basis of accounting policies consistent with those set out in the Annual Report and Financial Statements of ENW Finance plc for the year ended 31 March 2017.

The Directors do not believe that the Company is affected by seasonal factors which would have a material effect on the performance of the Company when comparing the interim results to those expected to be achieved in the second half of the year.

Going concern

When considering continuing to adopt the going concern basis in preparing the Half Year Condensed Financial Statements for the six months ended 30 September 2017, the Directors have taken into account a number of factors, including the financial position of the Company and the Group in which it operates. The Company is ultimately a subsidiary of North West Electricity Networks (Jersey) Limited, and the key trading subsidiary in the Group is ENWL. As the Company's obligations in respect of the listed debt are met via income receivable from ENWL, the Board considers the principal risks and uncertainties facing the Company to be those that affect the larger Group.

In consideration of this, the Directors of this Company are cognisant of the going concern disclosure which appears in the Half Year Condensed Consolidated Financial Statements of both ENWL and North West Electricity Networks Plc, the Company's immediate parent undertaking. Disclosure of the considerations made by the Directors in terms of the North West Electricity Networks Plc group and company cash flows, liquidity position, borrowing facilities and covenant compliance can be found in the North West Electricity Networks Plc Half Year Condensed Consolidated Financial Statements.

Notes to the Half Year Condensed Financial Statements (continued)

2    Significant accounting policies (continued)

Consequently, after making the appropriate enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, it is appropriate to adopt the going concern basis in preparing the Half Year Condensed Financial Statements.

Changes in accounting policy

There are no accounting policies and standards adopted for the six month period ended 30 September 2017, or for the remainder of the year to 31 March 2018, that have a significant impact on the Company.

Financial instruments at fair value through profit or loss (FVTPL)

Financial instruments at FVTPL are stated at fair value, with any gains or losses on re-measurement recognised in the profit and loss account. The net gain or loss is recognised in the profit and loss account in finance expense and is separately identifiable from the net interest paid or received on these financial instruments, see Note 4.  Fair value is determined in the manner described in Note 10.

3          Interest receivable and similar income


Unaudited

Period ended 30 September

2017

£000

Unaudited

Period ended 30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Interest receivable from Group companies

6,414

6,419

12,809


 

 

 

4          Interest payable and similar charges


Unaudited

Period ended 30 September

2017

£000

Unaudited

Period ended 30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Interest payable on borrowings held at amortised cost

6,221

6,216

12,403

Fair value movement on derivatives held for trading

(925)

(780)

(1,732)


 

 

 


5,296

5,436

10,671


 

 

 

 

 



 

Notes to the Half Year Condensed Financial Statements (continued)

5          Taxation


Unaudited

Period ended 30 September

2017

£000

Unaudited

Period ended 30 September

2016

£000

Audited

Year ended

31 March 2017

£000

Current tax:




UK corporation tax

189

198

396





Deferred tax:




Current year

96

14

173

Prior year

-

-

(58)


 

 

 

Tax charge for the period/year

285

212

511


 

 

 

 

Corporation tax is calculated at 19% (period ended 30 September 2016: 20%, year ended 31 March 2017: 20%) being the best estimate of the effective tax rate for the full financial year.

The rate will change 17% on 1 April 2020. Deferred tax is calculated based on the expected future tax rates.  

6          Loans to Group undertakings


Unaudited Period ended

30 September

2017

£000

Unaudited Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Loans to group undertakings

219,782

219,624

219,686


 

 

 





On 21 July 2009 the Company lent Electricity North West Limited proceeds of £198.2m in relation to the bond issue of £200.0m at 6.125 per cent fixed rate due 2021, net of discount on issue, on terms aligned to the terms of the external bond (see Note 9) and associated intercompany hedging arrangements.  The carrying value of the receivable reflects the amortisation of the discount.  On the same date, the Company also lent £20.5m to the immediate parent company, North West Electricity Networks plc. 

7          Amounts owed by Group undertakings


Unaudited Period ended

30 September

2017

£000

Unaudited Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Amounts owed by group undertakings

6,245

5,849

6,052


 

 

 





The amount due in less than one year is interest relating to the loans to group undertakings (Note 6).



 

Notes to the Half Year Condensed Financial Statements (continued)     

8          Creditors: amounts falling due within one year


Unaudited Period ended

30 September

2017

£000

Unaudited Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Accrued interest

2,378

2,378

2,378

Corporation tax

3,782

3,396

3,593


 

 

 


6,160

5,774

5,971


 

 

 

9          Borrowings


Unaudited Period ended

30 September

2017

£000

Unaudited Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Bonds measured at amortised cost

199,281

199,124

199,186


 

 

 





The Company has £200.0m 6.125% fixed rate bonds due 2021, guaranteed by ENWL.

10      Financial Instruments

Categories of financial instruments at FVTPL


Unaudited Period ended

30 September

2017

£000

Unaudited Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Derivative financial assets

292,513

322,469

310,728

Derivative financial liabilities

(299,803)

(331,636)

(318,943)


 

 

 

 

Profit for the year has been arrived at after (crediting)/charging the following fair value movements:


Unaudited

Period ended 30 September

2017

£000

Unaudited

Period ended

30 September

2016

£000

Audited

Year ended

31 March 2017

£000





Derivative financial assets

18,215

(65,268)

(53,527)

Derivative financial liabilities

(19,140)

64,488

51,795


 

 

 

Net credit to Profit and Loss Account (Note 4)

(925)

(780)

(1,732)


 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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