t
Bristol Water PLC announced its unaudited interim results for the six months ended 30 September 2025 on 27 November 2025. For this period, the company reported a profit before taxation of £0.1 million and statutory profit per share of 1.7p. The planned buy-out of the Bristol Water Section of The Water Companies Pension Scheme was completed on 11 July 2025, resulting in a £nil income statement settlement charge.
| Date | 27 Nov 2025 |
| Time | 07:05:01 |
| Category | Results |
| ID | 1787J |
Bristol Water PLC
Announcement of unaudited interim results for the six months ended 30 September 2025
Bristol Water plc (the "Company") announces its unaudited results for the six months ending 30 September 2025.
The Company's interim financial results are set out below and can also be accessed via the Company's website.
FINANCIAL HIGHLIGHTS
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Six months to 30 September 2025 |
Six months to 30 September 2024 |
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(unaudited) |
(unaudited) |
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£m |
£m |
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Profit / (loss) before taxation |
0.1 |
(0.1) |
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Earnings per share |
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Statutory profit / (loss) per share |
1.7p |
(1.7)p |
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The only transactions in the income statement relate to the remaining preference shares, debentures and pension asset. The remaining obligations relating to these are met from matching intra-group contracted assets and related receipts. The planned buy-out of the Bristol Water Section of The Water Companies Pension Scheme was completed on 11 July 2025. The section's assets and liabilities were remeasured prior to settlement using actuarial assumptions at this date. As the Trustees had previously insured the benefits through a bulk annuity policy, there was a £nil income statement settlement charge following the buyout.
For further information, please contact:
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Laura Flowerdew |
Group Chief Financial Officer |
01392 443 168 |
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Sarah Heald |
Investor Relations |
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James Murgatroyd Harry Worthington |
FGS Global |
020 7251 3801 |
INCOME STATEMENT
For the six months ended 30 September 2025
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Six months to 30 September 2025 (unaudited) |
Six months to 30 September 2024 (unaudited) |
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Note |
£m |
£m |
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Operating costs |
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(0.4) |
(0.4) |
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Operating loss |
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(0.4) |
(0.4) |
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Interest payable and similar charges |
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5 |
(0.6) |
(0.6) |
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Interest receivable and similar income |
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1.2 |
1.1 |
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Net interest receivable and similar income |
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0.6 |
0.5 |
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Profit on ordinary activities before taxation |
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0.2 |
0.1 |
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Taxation on profit on ordinary activities |
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6 |
(0.1) |
(0.2) |
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Profit / (loss) for the period |
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0.1 |
(0.1) |
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Profit / (loss) per ordinary share |
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7 |
1.7p |
(1.7)p |
All amounts above relate to the continuing operations of the Company.
STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 30 September 2025
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Six months to 30 September 2025 |
Six months to 30 September 2024 |
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(unaudited) |
(unaudited) |
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Note |
£m |
£m |
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Profit / (loss) for the period |
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0.1 |
(0.1) |
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Other comprehensive income: |
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Items that will not be reclassified to profit and loss |
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Actuarial gain on retirement benefit surplus |
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9 |
2.5 |
- |
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Re-measurement of defined benefit pension scheme restriction |
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(0.6) |
- |
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Other comprehensive income for the period, net of tax |
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1.9 |
- |
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Total comprehensive profit / (loss) for the period |
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2.0 |
(0.1) |
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STATEMENT OF FINANCIAL POSITION
As at 30 September 2025
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30 September 2025 (unaudited) |
31 March 2025 (audited) |
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Note |
£m |
£m |
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Non-current assets |
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Other receivables |
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8 |
26.6 |
26.6 |
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26.6 |
26.6 |
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Current assets |
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Retirement benefit surplus |
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9 |
11.1 |
9.2 |
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Trade and other receivables |
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- |
0.8 |
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Current tax asset |
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- |
0.3 |
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Cash and cash equivalents |
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1.9 |
0.3 |
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13.0 |
10.6 |
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Total assets |
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39.6 |
37.2 |
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Non-current liabilities |
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Borrowings and derivatives |
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10 |
(1.6) |
(1.6) |
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8.75% irredeemable cumulative preference shares |
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10 |
(12.5) |
(12.5) |
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(14.1) |
(14.1) |
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Current liabilities |
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Trade and other payables |
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(0.1) |
(0.1) |
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Current tax asset |
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(0.4) |
- |
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(0.5) |
(0.1) |
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Total liabilities |
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(14.6) |
(14.2) |
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Net assets |
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25.0 |
23.0 |
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Equity |
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Called-up share capital |
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6.0 |
6.0 |
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Share premium account |
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4.4 |
4.4 |
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Other reserves |
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5.8 |
5.8 |
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Retained earnings |
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8.8 |
6.8 |
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Total Equity |
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25.0 |
23.0 |
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The financial statements of Bristol Water plc, registered number 02662226 on pages 2 to 10 were approved by the Board of Directors 26 November 2025 and signed on its behalf by:
Laura Flowerdew Director |
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STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 September 2025
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Called up share capital |
Share premium account |
Capital redemption reserve |
Retained earnings |
Total |
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£m |
£m |
£m |
£m |
£m |
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Balance at 1 April 2024 |
6.0 |
4.4 |
5.8 |
7.0 |
23.2 |
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Loss for the period |
- |
- |
- |
(0.1) |
(0.1) |
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Total comprehensive loss for the period |
- |
- |
- |
(0.1) |
(0.1) |
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Balance as at 30 September 2024 |
6.0 |
4.4 |
5.8 |
6.9 |
23.1 |
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Balance at 1 April 2025 |
6.0 |
4.4 |
5.8 |
6.8 |
23.0 |
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Profit for the period |
- |
- |
- |
0.1 |
0.1 |
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Other comprehensive income for the year |
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Actuarial loss recognised in respect of retirement benefit obligations |
- |
- |
- |
2.5 |
2.5 |
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Remeasurement of defined benefit pension scheme |
- |
- |
- |
(0.6) |
(0.6) |
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Total comprehensive income for the period |
- |
- |
- |
2.0 |
2.0 |
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Balance as at 30 September 2025 |
6.0 |
4.4 |
5.8 |
8.8 |
25.0 |
The Board has not proposed interim dividends on the ordinary shares in respect of the period ended 30 September 2025 (6 months ended 30 September 2024: £nil).
NOTES TO THE INTERIM ACCOUNTS
For the six months ended 30 September 2025
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1 |
General Information |
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Bristol Water plc ("the Company") is a public company, limited by shares, with irredeemable preference shares and debenture stock listed on the London Stock Exchange.
The Company is incorporated and domiciled in England, United Kingdom. The address of its registered office is Bridgwater Road, Bristol, BS13 7AT, England. |
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2 |
Basis of preparation |
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The financial information contained in this interim announcement does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. The interim accounts have been prepared in accordance with Financial Reporting Standard 104 "Interim Financial Reporting" issued by the Financial Reporting Council and the Disclosure Rules and Transparency Rules of the United Kingdom's Financial Conduct Authority.
The Company has adopted FRS 101 "Reduced disclosure framework - Disclosure exemptions from EU-adopted IFRS for qualifying entities". |
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3 |
Accounting policies The same accounting policies used in preparing the annual financial statements as at 31 March 2025 have been used in preparing these interim accounts. |
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3.1 |
Going concern The Company's obligations are met by matching intra-group contracted assets and related receipts. The Company has received confirmation from Pennon Group plc that it will provide support to the Company should it be required, to meet its liabilities as they fall due for the period which covers the period from approval of these interim financial statements through to 30 November 2026. As a result, the Directors have concluded that the Company has adequate resources, or the reasonable expectation of raising further resources as required, to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements. Further information on the Company's borrowings is given in note 10. |
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4 |
Critical accounting estimates and judgments |
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The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
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The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the financial year relate to the defined benefit scheme. The significant judgements made by management in applying the Company's accounting policies and the key sources of estimate uncertainty relating to the defined benefit scheme were the same as those applied to the financial statements for the year ended 31 March 2025. |
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5 |
Net interest receivable and similar income |
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Six months to 30 September 2025 (unaudited) |
Six months to 30 September 2024 (unaudited) |
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£m |
£m |
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Interest payable and similar charges: |
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Debentures interest charges |
(0.1) |
(0.1) |
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Dividends on 8.75% irredeemable cumulative preference shares |
(0.5) |
(0.5) |
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(0.6) |
(0.6) |
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Interest receivable and similar income: |
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Interest income in respect of retirement benefit scheme |
0.4 |
0.3 |
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South West Water Ltd - interest receivable |
0.8 |
0.8 |
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1.2 |
1.1 |
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Total underlying net interest receivable and similar income |
0.6 |
0.5 |
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Dividends on the 8.75% irredeemable cumulative preference shares are payable at a fixed rate of 4.375% on 1 April and 1 October each year. Payment by the Company to the share registrars is made two business days earlier. The payments are classified as interest in accordance with IFRS 9 "Financial Instruments". |
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6 |
Taxation |
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Six months to 30 September 2025 (unaudited) |
Six months to 30 September 2024 (unaudited) |
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£m |
£m |
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Tax expense included in Income Statement |
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Current tax: |
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Corporation tax on profits for the period |
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0.1 |
0.2 |
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Total current tax |
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0.1 |
0.2 |
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Tax expense on profit |
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0.1 |
0.2 |
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7 |
Loss per ordinary share |
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At 30 September 2025 (unaudited) |
At 30 September 2024 (unaudited) |
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m |
m |
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Basic earnings / (loss) per ordinary share have been calculated as follows - |
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Earnings / (loss) attributable to ordinary shares |
£0.1 |
£(0.1) |
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Weighted average number of ordinary shares |
6.0 |
6.0 |
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1.7p |
(1.7)p |
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As the Company has no obligation to issue further shares, disclosure of earnings per share on a fully diluted basis is not relevant. |
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8 |
Other receivables: |
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Other receivables comprise loan notes issued to the Company on 1 February 2023 by South West Water Limited. |
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At 30 September 2025 (unaudited) £m |
At 31 March 2025 (audited) £m |
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Fixed interest rate |
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£25,000,000 fixed rate loan note |
6% |
25.0 |
25.0 |
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£1,405,218 fixed rate loan note |
4% |
1.4 |
1.4 |
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£72,900 fixed rate loan note |
3.5% |
0.1 |
0.1 |
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£54,875 fixed rate loan note |
4% |
0.1 |
0.1 |
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£36,740 fixed rate loan note |
4.25% |
- |
- |
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26.6 |
26.6 |
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9 |
Retirement benefits
Pension arrangements for former employees have historically been provided through the Company's membership of the Water Companies' Pension Scheme (WCPS), which provides defined benefits based on final pensionable pay. The Company's membership of WCPS is through a separate section of the scheme. The planned buy-out of the Section was completed on the 11 July 2025. The section's assets and liabilities were remeasured prior to settlement using actuarial assumptions at this date. The assets and liabilities were both reduced resulting in a net £nil income statement settlement charge. An actuarial gain of £2.7m was recognised in other comprehensive income for the period 1 April 2025 to 11 July 2025.
The gross pension surplus of £14.8m at 30 September 2025 (30 September 2024 £12.5m) relates to the market value of assets still held by the scheme.
The Company believes that it has an unconditional right to a refund of surplus and that the gross pension surplus can be recognised. This benefit is now only available as a refund. Under UK tax legislation a tax deduction of 25% is applied to a refund from a UK pension scheme, before it is passed to the employer. This tax deduction has been applied to restrict the value of the surplus recognised for this scheme. The process to wind up the scheme continues and the Trustee has indicated its intention to return the surplus to the Company. The remaining assets have been recognised as a current asset on the balance sheet.
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9 |
Retirement benefits (continued)
In June 2023, the High Court handed down a decision (Virgin Media Limited v NTL Pension Trustees II Limited and others) which potentially has implications for the validity of amendments made by schemes, including the Company defined benefit schemes, which were contracted-out on a salary-related basis between 6 April 1997 and the abolition of contracting-out in 2016. This decision was upheld by the Court of Appeal in August 2024. There is potential for legislative intervention following industry lobbying efforts that may retrospectively validate certain rule amendments that would otherwise be held void where the requirements of section 37 were not met. However, the Company has engaged with the Trustee for the WCPS who have confirmed that based on the governance processes in place and reviews of significant deed changes during the period in question, they have no reason to believe that the relevant requirements were not complied with in relation to the Scheme with regard to the relevant period in question. Given that there is no indication of non-compliance with the relevant requirements, the defined benefit schemes valuation as at 30 September 2025 does not reflect potential additional liabilities arising from the Virgin Media case. |
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In summary, assets and liabilities under IAS 19 were: |
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At 30 September 2025 (unaudited) £m |
At 31 March 2025 (audited) £m |
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Fair value of section assets |
14.8 |
104.0 |
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Present value of liabilities |
- |
(91.7) |
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Surplus in the section |
14.8 |
12.3 |
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Less: restriction of surplus |
(3.7) |
(3.1) |
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Net pension asset on IAS 19 basis |
11.1 |
9.2 |
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10 |
Net borrowings |
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At 30 September 2025 (unaudited) |
At 31 March 2025 (audited) |
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£m |
£m |
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Net borrowings comprise - |
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Borrowings and derivatives due after one year |
(1.6) |
(1.6) |
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(1.6) |
(1.6) |
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Cash and cash equivalents |
1.9 |
0.3 |
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Net cash / (borrowings) excluding 8.75% irredeemable cumulative preference shares |
0.3 |
(1.3) |
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8.75% irredeemable cumulative preference shares |
(12.5) |
(12.5) |
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Net borrowings |
(12.2) |
(13.8) |
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10
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Net borrowings (continued)
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Fair value of financial assets and liabilities measured at amortised cost. |
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The fair value of financial assets and liabilities are as follows: |
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At 30 September 2025 (unaudited) |
At 31 March 2025 (audited) |
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£m |
£m |
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Financial liabilities |
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Non-current |
(19.7) |
(19.7) |
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Financial assets |
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Non-current |
26.6 |
26.6 |
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6.9 |
6.9 |
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11 |
Ultimate parent company and controlling party |
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The immediate parent company for this entity is South West Water Limited a company incorporated in England and Wales.
As at 30 September 2025 and 31 March 2025, the Directors considered the ultimate parent and controlling party of the Company to be Pennon Group plc.
The smallest and largest group in which the Company is consolidated is Pennon Group plc which is registered in England and copies of its consolidated interim report are available from Peninsula House, Rydon Lane, Exeter, Devon, England, EX2 7HR.
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12 |
Related party transactions
The Company has taken advantage of the exemptions within FRS101 and not disclosed transactions with other wholly owned group undertaking.
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13 |
Circulation
This interim announcement is available on the Bristol Water web site. Paper copies are also available from the Company's registered office at Bridgwater Road, Bristol, BS13 7AT, England. |
DIRECTORS' RESPONSIBILITIES FOR THE PREPARATION OF INTERIM ACCOUNTS
The directors confirm that these condensed interim financial statements have been prepared in accordance with FRS104 'Interim Financial Reporting', and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
§ an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
§ material related-party transactions in the first six months and any material changes in the related-party transactions described in the last annual report.
The directors of Bristol Water Plc at the date of the signing of this announcement and statement are:
Susan Davy
Laura Flowerdew
Going concern
The directors have a reasonable expectation that the Company has adequate resources available to it to continue in operational existence for the foreseeable future and have therefore continued to adopt the going concern policy in preparing the interim accounts. This conclusion is based upon, amongst other matters, a review of the Company's financial projections together with confirmation of support from its parent company Pennon Group plc.
By order of the Board
L Flowerdew
Chief Financial Officer
26 November 2025