• Excel downloads
• |
• Company presentations
• |
• Print Page
• |
• Contact Us
• |
• pennon-group.co.uk

Contents

• Financial highlights and Group strategy
• Directors’ Report - Business Review
• Chairman’s statement
• Pennon Group: Financial performance
• Pennon Group: Funding position
• Chief Executives’ overviews:
  • South West Water
  • Viridor
• About our businesses:
  • South West Water
    • Regulatory and competitive environment
    • Customers, community and employees
    • Key relationships
    • Principal risks and uncertainties
  • Viridor
    • Regulatory and competitive environment
    • Customers, community and employees
    • Key relationships
    • Principal risks and uncertainties
  • Pennon Group
    • Other financial information
    • Key relationships
    • Principal risks and uncertainties
  • Our corporate responsibility
  • Interpretation
  • Glossary
• Directors’ Report - Other statutory information
• Board of Directors
• Directors’ Remuneration Report
• Corporate Governance and Internal Control
• Independent Auditors’ report
• Financial statements:
  • Consolidated income statement
  • Statements of comprehensive income
  • Balance sheets
  • Statements of changes in equity
  • Cash flow statements
  • Notes to the financial statements:
    • 1. General information
    • 2. Principal accounting policies
    • 3. Financial risk management
    • 4. Critical accounting judgements and estimates
    • 5. Prior year adjustment
    • 6. Operating segments
    • 7. Operating costs
    • 8. Net finance costs
    • 9. Taxation
    • 10. Profit of parent company
    • 11. Earnings per share
    • 12. Dividends
    • 13. Employment costs
    • 14. Directors' emoluments
    • 15. Goodwill
    • 16. Other intangible assets
    • 17. Property, plant and equipment
    • 18. Financial instruments by category
    • 19. Other non-current assets
    • 20. Investments
    • 21. Inventories
    • 22. Trade and other receivables current
    • 23. Derivative financial instruments
    • 24. Cash and cash deposits
    • 25. Trade and other payables current
    • 26. Current tax liabilities/(recoverable)
    • 27. Borrowings
    • 28. Other non-current liabilities
    • 29. Retirement benefit obligations
    • 30. Deferred tax
    • 31. Provisions
    • 32. Share capital
    • 33. Share premium account
    • 34. Capital redemption reserve
    • 35. Retained earnings and other reserves
    • 36. Cash flow from operating activities
    • 37. Net borrowings
    • 38. Aquisitions
    • 39. Principal subsidiary and joint venture undertakings
    • 40. Operating lease commitments
    • 41. Contingent liabilities
    • 42. Capital commmitments
    • 43. Related party transactions
• Five-year financial summary
• Shareholder information

NOTES TO THE FINANCIAL STATEMENTS

29. RETIREMENT BENEFIT OBLIGATIONS

The Group operates a number of defined benefit pension schemes including a defined contribution section within the main scheme.

During the year the acquisition of Greater Manchester Waste Limited resulted in the Group participating in two further defined benefit pension schemes. The amounts acquired are shown in the analysis of the fair value of the schemes' assets and the present value of the schemes' defined benefit obligations below.

The assets of the Group's pension schemes are held in separate trustee administered funds. The trustees of the funds are required to act in the best interest of the funds' beneficiaries. The appointment of schemes' trustees is determined by the schemes' trust documentation. The Group has a policy for the main fund that one-half of all trustees, other than the Chairman, are nominated by members of the schemes, including pensioners.

Defined contribution schemes

Pension costs for defined contribution schemes were £2.4m (2009 £1.9m).

Defined benefit schemes

Assumptions

The principal actuarial assumptions at 31 March were:

Mortality

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience. The mortality assumption uses a scheme-specific 'medium cohort' basis.

The average life expectancy in years of a member having retired at age 62 on the balance sheet date is projected at:

The average life expectancy in years of a future pensioner retiring at age 62, 20 years after the balance sheet date is projected at:

The sensitivities regarding the principal assumptions used to measure the schemes' liabilities are:

The amounts recognised in the income statement were:

The actual return on schemes' assets was a profit of £98.5m (2009 loss of £79.2m).

The amounts recognised in the statement of comprehensive income were:

The amounts recognised in the balance sheet were:

The schemes' assets and the expected long-term rates of return at the year end were:

Other assets principally represent cash contributions received from the Group towards the year-end which are invested during the subsequent financial year.

The Company's share of the schemes' assets at the balance sheet date were:

The expected return on schemes' assets is determined by considering the long-term returns and the balance between risk and reward on the various categories of investment assets held. Expected returns on equity and property investments reflect long-term rates of return experienced in the respective markets. Expected yields on fixed interest investments are based on gross redemption yields as at the balance sheet date.

In conjunction with its investment advisers, the trustees have structured the schemes' investments with the objective of balancing investment returns and levels of risk. The asset allocation for the main scheme has three principal elements:

- holding of bonds which is expected to be less volatile than most other asset classes and reflects the schemes' liabilities

- a proportion of equities, with fund managers having freedom in making investment decisions to maximise returns

- investment of a relatively small proportion of the schemes' assets (circa 10%) in alternative asset classes which give the potential for gaining higher returns (property and currency).

The liabilities of the defined benefit schemes are measured by using the projected unit credit method which is an accrued benefits valuation method in which the scheme liabilities make allowance for projected earnings.

Movements in the net liability were:

Movements in the fair value of schemes' assets were:

Movements in the present value of schemes' defined benefit obligations were:

The future cash flows arising from the payment of the defined benefits are expected to be settled primarily in the period between 15 and 40 years from the balance sheet date.

The five-year history of experience adjustments is:

The cumulative actuarial gains recognised in the Group statement of comprehensive income at 31 March 2010 were £19.4m (2009 gains of £63.8m).

The cumulative actuarial gains recognised in the Company statement of comprehensive income at 31 March 2010 were £1.9m (2009 gains of £6.2m).

In 2008 the Group completed the triennial actuarial valuation of its defined benefit schemes as at 1 April 2007 which resulted in higher future service and deficit recovery contributions. The Group updated the valuation of the main scheme to 31 March 2009 and has made deficit recovery contributions of £13.2m during the year (2009 £38.7m). The Group monitors funding levels on an annual basis and expects to pay total contributions of £34.4m during the year ended 31 March 2011.

• Web design AB
• |
• Terms and Conditions
• |
• Copyright
• |
• Feedback
• |
• Accessibility