Annual Report and Accounts 2016

Group financial highlights

Revenue
 
£1,352.3m-0.4%
Adjusted Ebitda(1)
before non-underlying items
£508.4m+9.1%
Profit Before Tax
before non-underlying items
£211.3m+0.3%
(statutory basis £206.3m)
Dividend
 
33.58p+5.6%
Assets
£5.7bn
INVESTMENT IN KEY INFRASTRUCTURE
£317m
Shareholder Profits(2) (£m)
Profit before tax and non-underlying items 211.3
Non-underlying items impacting profit before tax (5.0)
Tax charge (38.0)
Profit attributable to perpetual capital holders (16.2)
Profit after tax attributable to shareholders 152.1

Highlights of the year
  • Strong start to the new regulatory period for the water business delivering a RoRE of 11.7%(3)
  • Group results benefiting from growth:
    • £90 million of EBITDA delivered from Energy Recovery Facilities (ERFs) in 2015/16, up 166%. ERFs on track to deliver targeted c.£100 million of EBITDA(1) in 2016/17 despite pressure on power prices and the removal of Levy Exemption Certificates (LECs)
    • Bournemouth Water acquired on 15 April 2015, with key aspects of the integration with South West Water delivered:
      • licence and trade and assets merged
      • shared services combined
      • debt transferred and security removed
  • Group efficiency initiatives underway, expected to deliver future cost savings
    of c.£11 million p.a.
Strategy in Action
  • Dividend increased by 5.6% in line with sector-leading policy of 4% year-on-year
    growth over RPI
  • Group remains well funded with efficient long-term financing
  • Continued focus on sustainable investment and activities that make a positive impact on communities and the environment
  • Implementing improvements in recycling activities.
Read our Group financial highlights (PDF)
  1. Earnings before interest, tax, depreciation, amortisation and non-underlying items (EBITDA). (Adjusted EBITDA includes IFRIC 12 interest receivable and share of joint venture EBITDA – see notes 8 and 20 to the financial statements)
  2. Reconciliation of profit before tax and non-underlying items to profit after tax attributable to shareholders
  3. Return on regulated equity. See page 28 for further details.
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