Financial notes

  1. Following its investigation into our wastewater treatment works
    compliance reporting Ofwat imposed a penalty under Section
    22A of the Water Industry Act. We provided in full for this
    proposed regulatory settlement in the financial statements for
    2018–19 reducing profit in that year. We are now making rebates to
    customers, through revenue, over the period from 2020 to 2025
    and these are offset in the income statement by the amortisation of
    the provision made in 2018-19.
  2. Capital investment for 2020–21 includes an intangible asset of
    £124.6 million recognised for the future payments to Portsmouth
    Water in relation to the right to water from the construction of the
    Havant Thicket reservoir. This is a non-cash valuation in the year and
    payments will be made to Portsmouth over the period to 2100.
  3. ROCE is presented as the ratio of profit before interest and tax
    (£139.6 million) to non-current assets excluding debt (£6,663.9
    million) less current liabilities excluding borrowings and lease
    liabilities (£317.6 million) from the Statement of Financial Position.
  4. Regulatory Capital Value (RCV) a measure of the value of our
    regulatory capital asset base as published by Ofwat. The RCV for
    March 20 has been restated to reflect the adjustments made by
    Ofwat at the end of the last regulatory period.
  5. The net debt to RCV ratio is calculated as short and long-term senior
    borrowings, less cash and short-term deposits to the RCV (all values
    taken from our Regulatory Accounts).