United Utilities Annual Report and Financial Statements for the year

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Notes to the accounts (continued) 8 TAXATION ON PROFIT ON ORDINARY ACTIVITIES Ordinary tax: Current tax: Restated Restated 2003 2002 2001 £m £m £m UK corporation tax at 30 per cent 11.0 13.6 7.4 Overseas tax 0.1 0.4 0.9 Share of joint ventures’ tax 1.7 2.4 3.1 Prior years tax adjustments (41.9) – – Total ordinary current tax (29.1) 16.4 11.4 Deferred tax: Origination and reversal of timing differences 88.2 82.8 89.0 Decrease/(increase) in discount 0.3 (59.8) (33.0) Prior years tax adjustments (2.6) – – Total ordinary deferred tax 85.9 23.0 56.0 Total ordinary tax 56.8 39.4 67.4 Exceptional tax: Current tax: Exceptional tax on restructuring of businesses (6.3) – 45.0 Deferred tax: Origination and reversal of timing differences (4.5) – 24.0 Decrease in discount 1.4 – – Total exceptional tax (9.4) – 69.0 Tax on profit on ordinary activities 47.4 39.4 136.4 The table below reconciles the notional tax charge at the UK corporation tax rate for the year to the actual current rate for taxation. Restated Restated 2003 2002 2001 £m £m £m Profit on ordinary activities before tax 327.5 302.8 477.7 % % % UK corporation tax rate 30.0 30.0 30.0 Capital allowances in excess of depreciation (24.2) (28.6) (15.2) Other timing differences (1.4) 1.7 (8.1) Disposal of businesses – – 2.5 Withdrawal from infrastructure management in the Americas (4.0) – – Prior years tax adjustments (12.8) – – Net costs not deductible for tax purposes 1.6 2.3 2.6 Actual current tax rate (10.8) 5.4 11.8 9 DIVIDENDS 2003 2002 2001 £m £m £m Interim dividend of 15.5 pence (2002 – 15.3 pence; 2001 – 15.0 pence) 86.2 84.7 82.9 Final dividend of 32.1 pence proposed (2002 – 31.7 pence; 2001 – 31.1 pence) 178.6 176.2 172.0 264.8 260.9 254.9 56 United Utilities Annual Report & Accounts 2003
10 EARNINGS PER SHARE Restated Restated 2003 2002 2001 Profit for the financial year attributable to ordinary shareholders £277.8m £261.8m £341.3m Basic earnings per ordinary share 50.0p 47.3p 61.9p Diluted earnings per ordinary share 49.8p 47.2p 61.6p Adjusted basic earnings per share: £m £m £m Profit for the financial year attributable to ordinary shareholders 277.8 261.8 341.3 Adjustments: Discontinued operations – – (17.6) Exceptional items: – business restructuring 3.8 11.9 16.6 – withdrawal from infrastructure management in the Americas (34.0) – – – adjustment to the carrying value of telecommunications assets 25.5 – – Profit on disposal of businesses – – (191.2) Exceptional taxation (9.4) – 69.0 Amortisation of goodwill 7.5 8.0 4.0 Adjusted profit for financial year attributable to ordinary shareholders 271.2 281.7 222.1 Adjusted basic earnings per ordinary share 48.8p 50.9p 40.3p Adjusted diluted earnings per ordinary share 48.6p 50.7p 40.1p Basic earnings per ordinary share and the adjusted basic earnings per ordinary share have been calculated by dividing profit and the adjusted profit for the financial year attributable to ordinary shareholders by 556.1 million, being the weighted average number of shares in issue during the year (2002 – 553.5 million; 2001 – 551.1 million). Diluted earnings per ordinary share and adjusted diluted earnings per ordinary share have been calculated by dividing profit and the adjusted profit for the financial year attributable to ordinary shareholders by 557.6 million, being the weighted average number of shares in issue during the year including dilutive shares (2002 – 555.2 million; 2001 – 553.7 million). Adjusted earnings per share is being presented to provide additional information on the group’s underlying performance. The weighted average number of shares can be reconciled to the weighted average number of shares including dilutive shares as follows: 2003 2002 2001 million million million Average number of ordinary shares in issue – basic 556.1 553.5 551.1 Average number of ordinary shares under option 9.6 10.0 12.8 Number of ordinary shares that would have been issued at fair value (8.1) (8.3) (10.2) Average number of ordinary shares in issue – diluted 557.6 555.2 553.7 11 INTANGIBLE FIXED ASSETS Other Goodwill intangibles Total £m £m £m Cost: At 1 April 2002 84.0 9.0 93.0 Additions 7.2 – 7.2 Revaluations (1.2) – (1.2) At 31 March 2003 90.0 9.0 99.0 Amortisation: At 1 April 2002 11.7 0.1 11.8 Charge for the year 6.8 0.3 7.1 Revaluations 2.3 8.6 10.9 At 31 March 2003 20.8 9.0 29.8 Net book value: At 31 March 2003 69.2 – 69.2 At 31 March 2002 72.3 8.9 81.2 United Utilities Annual Report & Accounts 2003 57
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United to deliver solid growth Annu
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United in creating value through ef
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Chairman’s statement steadfast pe
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Regulatory process timeline Water A
Page 9 and 10: ALIGNING OUR PEOPLE AND INFRASTRUCT
Page 11 and 12: Operating review Licensed multi-uti
Page 13 and 14: Operating review Licensed multi-uti
Page 15 and 16: LOCKING IN OUR UNIQUE SKILLS AND EX
Page 17 and 18: Operating review Infrastructure man
Page 19 and 20: A POSITIVE SERVICE CULTURE HAS HELP
Page 21 and 22: Operating review Business process o
Page 23 and 24: have had a positive impact on our b
Page 25 and 26: and case study information can be f
Page 27 and 28: Community 58% OF EMPLOYEES FEEL ENC
Page 29 and 30: Workplace 40% INCREASE IN EMPLOYEES
Page 31 and 32: eflects the long-term nature of the
Page 33 and 34: Taxation The current UK mainstream
Page 35 and 36: 1 Sir Richard Evans (age 60) Chairm
Page 37 and 38: Directors’ report Principal activ
Page 39 and 40: Report on governance The Combined C
Page 41 and 42: procedures). It also considers repo
Page 43 and 44: Table 2: Non-executive directors’
Page 45 and 46: Table 5: Executive directors’ con
Page 47 and 48: Table 7: Executive directors’ LTI
Page 49 and 50: Independent auditor’s report Inde
Page 51 and 52: Balance sheets Restated 2003 2002 2
Page 53 and 54: Statement of total recognised gains
Page 55 and 56: Carrying value of tangible fixed as
Page 57 and 58: 2 SEGMENTAL INFORMATION Turnover, p
Page 59: 4 PROFIT ON SALE OR TERMINATION OF
Page 63 and 64: Fixtures, fittings, tools and equip
Page 65 and 66: Acquisitions Revaluation Fair value
Page 67 and 68: 20 PROVISIONS FOR LIABILITIES AND C
Page 69 and 70: 23 FINANCIAL INSTRUMENTS AND RISK M
Page 71 and 72: The cumulative amount of goodwill i
Page 73 and 74: off to the profit and loss account
Page 75 and 76: 26 LEASE COMMITMENTS Subsidiary und
Page 77 and 78: 32 MANAGEMENT OF LIQUID RESOURCES 2
Page 79 and 80: Five year summary Restated Restated
Page 81 and 82: 2003 Annual Report text printed on
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