Annual report and financial statement 2009 - United Utilities

More documents

Recommendations

Info

FINANCIAL STATEMENTSNotes to the financial statementscontinued20 RETIREMENT BENEFIT OBLIGATIONS CONTINUEDMovements in the fair value of the schemes’ assets were as follows:2009 2008Group £m £mAt 1 April 1,863.2 2,896.6Expected return on schemes’ assets 124.3 165.7Actuarial losses (496.4) (239.9)Curtailments/settlements – (885.9)Member contributions 9.2 11.0Benefits paid (61.9) (100.4)Company contributions 45.4 16.1At 31 March 1,483.8 1,863.2The net pension expense before taxation recognised in the income statement in respect of the defined benefit schemes is summarisedas follows:Continuing Continuing DiscontinuedGroup operations operations operations Total2009 2008 2008 2008£m £m £m £mCurrent service cost (36.7) (40.3) (5.7) (46.0)Curtailments/settlements – 5.6 – 5.6Past service cost (3.1) (9.4) (0.6) (10.0)Pension expense charged to operating profit (see note 3) (39.8) (44.1) (6.3) (50.4)Expected return on schemes’ assets 124.3 128.6 37.1 165.7Interest on schemes’ obligations (117.5) (105.1) (31.9) (137.0)Pension expense credited to investment income (see note 5) 6.8 23.5 5.2 28.7Curtailments/settlements charged to profit/(loss) on disposal – – (30.5) (30.5)Net pension charged before taxation (33.0) (20.6) (31.6) (52.2)The reconciliation of the opening and closing balance sheet position is as follows:2009 2008Group £m £mAt 1 April (101.2) 61.3Expenses recognised in the income statement (33.0) (52.2)Contributions paid 45.4 16.1Actuarial losses gross of taxation (124.3) (126.4)At 31 March (213.1) (101.2)Actuarial gains and losses are recognised directly in the statement of recognised income and expense. At 31 March 2009, a cumulativepre-tax loss of £95.1 million (2008: £29.2 million gain) had been recorded directly in the statement of recognised income and expense.The history of the schemes for the current and prior years is as follows:2009 2008 2007 2006 2005Group £m £m £m £m £mPresent value of defined benefit obligations (1,696.9) (1,964.4) (2,835.3) (2,721.0) (2,382.3)Fair value of schemes’ assets 1,483.8 1,863.2 2,896.6 2,740.3 2,297.7Net retirement benefit (obligations)/surplus (213.1) (101.2) 61.3 19.3 (84.6)Experience adjustments on schemes’ liabilities (8.9) 23.8 92.6 – (14.3)Experience adjustments on schemes’ assets (496.4) (239.9) (43.3) 397.2 45.3At 31 March 2009, gross pension liabilities in respect of retirement benefit obligations for NGNPS were £171.7 million (2008: £200.6 million).Gross pension assets in respect of NGNPS at 31 March 2009 were £169.7 million (2008: £193.7 million). The group recorded a relateddeferred tax asset at 31 March 2009 of £0.6 million (2008: £1.9 million). The directors consider that the group should apply defined benefitaccounting in respect of the scheme. However, the group does not have the responsibility to fund the net pension deficit and has reflectedthis by the recognition of an available for sale financial asset within investments of £1.4 million at 31 March 2009 (2008: £5.0 million).82 unitedutilities.com
Defined contribution pension costsUUPS also includes a defined contribution section which constitutes around 1.0 per cent of the total asset value.During the year, the group made £7.0 million (2008: £4.0 million) of contributions to defined contribution schemes, which are included in arrivingat operating profit from continuing operations and a further £nil (2008: £0.7 million) which are recognised within discontinued operations.Various companies in the United Kingdom electricity business participate in the Electricity Supply Pension Scheme (ESPS), which is anindustry-wide defined benefit scheme. The United Utilities Electricity Services Limited (UUES) section of the Electricity North WestLimited (ENW) Group of the scheme was created in December 2007 to accommodate the transfer of employees from ENW (formerlyUnited Utilities Electricity Limited) to UUES. At that date, the UUES section of the scheme was fully funded. The group makes cashcontributions over the period of the Asset Services Agreement (ASA) between UUES and ENW, which are fully recoverable from ENWunder the terms of the ASA. There is no obligation brought forward, or carried forward, for which the group is responsible. However,as the group is the employer, it is required to disclose the gross pension liabilities and assets associated with the scheme.At 31 March 2009, gross pension liabilities in respect of retirement benefit obligations for the UUES section were £157.3 million(2008: £196.3 million). Gross pension assets in respect of the UUES section, at 31 March 2009, were £149.4 million (2008: £186.6million). £13.6 million of cash contributions have been made to the UUES section of the ESPS during the year ended 31 March 2009(19 December 2007 to 31 March 2008: £nil), these costs being charged to operating profit as defined contribution pension costs.Therefore, in total for continuing operations, the group incurred defined contribution pension costs of £20.6 million (2008: £4.0 million)(see note 3).The company does not participate in any of the group’s pension schemes.21 DEFERRED TAX LIABILITIESThe following are the major deferred tax liabilities and assets recognised by the group and the movements thereon, during the currentand prior year:Accelerated Retirementtax benefitdepreciation obligations Other TotalGroup £m £m £m £mAt 1 April 2007 1,579.9 (92.4) 63.0 1,550.5Change in taxation rate (105.3) 6.1 (4.2) (103.4)Charged/(credited) to the income statement 51.4 84.6 (73.1) 62.9Credited to equity – (35.4) (0.4) (35.8)Disposed of in the year (312.2) 8.8 (6.8) (310.2)At 31 March 2008 1,213.8 (28.3) (21.5) 1,164.0Abolition of industrial buildings allowances (see note 7) 206.4 – – 206.4Charged/(credited) to the income statement 35.4 3.4 (35.1) 3.7Credited to equity – (34.8) (0.4) (35.2)At 31 March 2009 1,455.6 (59.7) (57.0) 1,338.9Financial statementsCertain deferred tax assets and liabilities have been offset in accordance with IAS 12 ‘Income Taxes’.The company has no deferred tax assets or liabilities.22 PROVISIONSOnerousRestructuring leases Other TotalGroup £m £m £m £mAt 1 April 2007 6.3 7.7 24.9 38.9Charged/(credited) to the income statement 22.3 (4.0) 4.9 23.2Utilised in the year (12.2) – (2.4) (14.6)Disposed of in the year (4.1) (3.7) – (7.8)At 31 March 2008 12.3 – 27.4 39.7Charged to the income statement 7.2 – 5.5 12.7Utilised in the year (8.1) – (4.5) (12.6)At 31 March 2009 11.4 – 28.4 39.8The restructuring provision principally relates to severance and programme costs as a result of group reorganisation.Other provisions principally relate to legal claims against the group and represent management’s best estimate of the value of settlementand costs. It is estimated that these claims will be settled in more than one year.unitedutilities.com 83
Page 1 and 2:
UNITED UTILITIES GROUP PLC ANNUAL R
Page 3 and 4:
Business reviewPerformance against
Page 5 and 6:
In the 2005-2010 period, UUW is inv
Page 7 and 8:
Business reviewTogether with the in
Page 9 and 10:
FINANCIAL REVIEWUnited Utilities ha
Page 11:
cash resources. Cash and short-term
Page 15 and 16:
Non-regulated activitiesand other a
Page 17 and 18:
BUSINESS REVIEW: EMPLOYEESEmployees
Page 19 and 20:
RISKCURRENT CAPITAL MARKET CONDITIO
Page 21 and 22:
RISKMATERIAL LITIGATIONNOSS Consort
Page 23 and 24:
GovernanceTim Weller (45)Chief fina
Page 25 and 26:
In addition, resolutions will be pr
Page 27 and 28:
Corporate governance reportThe Comb
Page 29 and 30:
The letters of appointment of the n
Page 31 and 32:
group are required to complete and
Page 33 and 34: eporting or other matters. Historic
Page 35 and 36: The chart below sets out the summar
Page 37 and 38: Table 5: Operational performance me
Page 39 and 40: ii) Matching share award planDetail
Page 41 and 42: The committee will apply such mitig
Page 43 and 44: Statement of directors’ responsib
Page 45 and 46: Independent auditors’ reportIndep
Page 47 and 48: Balance sheetsat 31 MarchGroupCompa
Page 49 and 50: Cashflow statementsfor the year end
Page 51 and 52: asset (or disposal group) is availa
Page 53 and 54: economy) are translated into sterli
Page 55 and 56: estimates, which would result in op
Page 57 and 58: Notes to the financial statements1
Page 59 and 60: Remuneration of key management pers
Page 61 and 62: 5 INVESTMENT INCOME2009 2008£m £m
Page 63 and 64: 8 DISCONTINUED OPERATIONSDuring the
Page 65 and 66: Basic earnings per share are calcul
Page 67 and 68: 14 INVESTMENTSOtherAssociate invest
Page 69 and 70: A full list of the company’s subs
Page 71 and 72: Trade and other receivables is spli
Page 73 and 74: Terms and debt repayment schedule c
Page 75 and 76: The counterparties in respect of tr
Page 77 and 78: Market riskMarket risk is the risk
Page 79 and 80: More1 year 1-2 2-3 3-4 4-5 than 5Gr
Page 81 and 82: Fair valuesThe fair values of finan
Page 83: The main financial assumptions used
Page 87 and 88: 24 SHAREHOLDERS’ EQUITYShareCumul
Page 89 and 90: 27 SHARE-BASED PAYMENTSOn 28 July 2
Page 91 and 92: The movement in total outstanding o
Page 93 and 94: 28 RELATED PARTY TRANSACTIONSGroupT
Page 95 and 96: Useful information for shareholders
show all

Annual report and financial statement 2009 - United Utilities

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?