Wales & West Utilities Limited - Directors' report ... - Our Home Page

Notes to the financial statements1. Company profit and loss accountAs permitted by section 408 of the Companies Act 2006, the profit and loss account of the Company has notbeen included in these financial statements. The loss after taxation for the year dealt with in the financialstatements of the Company was £114.6m (2010: £89.7m). The loss transferred to reserves was £114.6m(2010: £89.7m).2. Operating profit(a) Operating profit is stated after charging/(crediting)2010 2010Note £m £mContinuing operations:Staff costs 3(b) 68.7 66.6Own work capitalised (19.9) (18.1)Depreciation: Own assets 6 68.8 70.3Release of advanced amortisation on onerouscontract - 1.3Less amortisation of customer contributions (1.3) (1.1)Less amortised grants (0.1) (0.1)Profit on disposal of fixed assets (0.2) (0.2)Replacement expenditure 79.6 76.6Rentals under operating leases:Hire of plant and equipment 1.2 1.0Other 1.1 1.2Exceptional items ~ (decrease)/increase inprovisions2(b)(1.8) 3.3Exceptional items ~ restructuring costs 2(b) 0.7 -Own work capitalised includes direct labour and ancillary costs.(b) Exceptional itemsThe exceptional items relate to the revision of the environmental and demolition provision and wayleavesprovision resulting from reviews of costs incurred and the timing of work done during the three years ended31 March 2011. The restructuring costs relate to amounts payable to National Grid following theimplementation of the new in-house gas control systems.Wales & West Utilities Limited22Registered number: 05046791