3 Aug 2016 11:45
PEWT SECURITIES 2020 PLC - Half-year ReportPEWT SECURITIES 2020 PLC - Half-year Report
PR Newswire
London, August 2
PEWT SECURITIES 2020 PLC
Interim Report for the period from 9 November 2015 (the date of incorporation) to 30 June 2016
PEWT Securities 2020 PLC (the “Company”) announces its interim results for the period ended 30 June 2016.
The Company’s principal objective is to provide Zero Dividend Preference Shares with a predetermined final capital entitlement. It is recommended that these accounts are read in conjunction with those of its parent, Premier Energy and Water Trust PLC, also issued today.
Directors’ Responsibility Statement
The Directors are responsible for preparing the Interim Report, in accordance with applicable law and regulations. The Directors confirm that, to the best of their knowledge:
• The condensed set of Financial Statements within the Interim Report has been prepared in accordance with IAS 34, “Interim Financial Reporting”, as adopted by the European Union; and
• The Interim Management Report includes a fair review of the information required by 4.2.7R (indication of important events during the first six months of the year) and 4.2.8R (disclosure of related party transactions and changes therein) of the FCA’s Disclosure and Transparency Rules.
For and on behalf of the Board.
Geoffrey Burns
Chairman
3 August 2016
Financial Statements
Income Statement
For the period from 9 November 2015 (the date of incorporation) to 30 June 2016
| From 9 November 2015 the date of incorporation to 30 June 2016 | |||
| (Unaudited) | (Unaudited) | (Unaudited) | |
| Revenue | Capital | Total | |
| £000 | £000 | £000 | |
| Finance costs* | - | (564) | (564) |
| Loss before taxation | - | (564) | (564) |
| Taxation | - | - | - |
| Loss for the period | - | (564) | (564) |
The total column of this statement represents the Company’s profit or loss, prepared in accordance with IFRS.
The supplementary revenue and capital columns are prepared under guidance published by the Association of Investment Companies (“AIC”).
All items derive from continuing operations; the Company does not have any other recognised gains or losses.
\* These costs relate to the provision for compound growth entitlement of the Zero Dividend Preference Shares.
Balance Sheet
As at 30 June 2016
| £000 | |
| Current assets | |
| Amount due from Parent Company | 24,687 |
| Total assets | 24,687 |
| Creditors: amounts falling due after more than one year | |
| Zero Dividend Preference Shares | (24,637) |
| Net Assets | 50 |
| Equity Attributable to Ordinary Shareholders | |
| Share Capital | 50 |
| Capital reserve | 564 |
| Accumulated loss | (564) |
| Total Equity Attributable to Ordinary Shareholders | 50 |
Statement of Changes in Equity
For the period from 9 November 2015 (the date of incorporation) to 30 June 2016
| Ordinary Share Capital | Capital Contribution | Accumulated Loss | Total | |
| £000 | £000 | £000 | £000 | |
| Balance at start of period | - | - | - | - |
| Issue of Ordinary shares | 50 | - | - | 50 |
| Loss for the period | - | - | (564) | (564) |
| Contribution by Parent Company | - | 564 | - | 564 |
| Balance at 30 June 2016 | 50 | 564 | (564) | 50 |
Notes to the Financial Statements
For the period from 9 November 2015 (the date of incorporation) to 30 June 2016
1. General Information
PEWT Securities 2020 PLC (the “Company”) was incorporated in England and Wales on 9 November 2015 and is a wholly owned subsidiary of Premier Energy and Water Trust PLC (the “Parent”) which is an investment trust registered in England and Wales. The Company commenced operation on 31 December 2015 as part of the reconstruction of the Parent when it issued 24,073,337 New Zero Dividend Preference Shares.
The financial statements are prepared from 9 November 2015 (the date of incorporation) to 30 June 2016.
2. Significant Accounting Policies
2.1 Basis of preparation
The Interim Financial Statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting and in accordance with the Statement of Recommended Practice (“SORP”) for investment trusts issued by the Association of Investment Companies (“AIC”) in November 2014, where the SORP is not inconsistent with IFRS.
The financial information contained in this Interim Report does not constitute statutory accounts as defined in Section 434 of the Companies Act 2006 and have not been audited.
The functional currency of the Company is Sterling as this is the currency of the primary economic environment in which the Company operates. Accordingly, the Financial Statements are presented in Sterling rounded to the nearest thousand pounds.
2.2 Presentation of Statement
In order to better reflect the activities of the Company as an investment trust company, and in accordance with guidance issued by the AIC, supplementary information which analyses the Income Statement between items of a revenue and capital nature has been presented alongside the Income Statement.
2.3 Use of estimates
The preparation of Financial Statements requires the Company to make estimates and assumptions that affect the items reported in the Balance Sheet and Statement of Comprehensive Income and the disclosure of contingent assets and liabilities at the date of the Financial Statements. Although these estimates are based on managements best knowledge of current facts, circumstances and, to some extent, future events and actions, the Company’s actual results may ultimately differ from those estimates, possibly by a significant amount.
2.4 Segmental reporting
The chief operating decision maker has been identified as the Board of the Company. The Board reviews the Company’s internal management accounts in order to analyse performance. The Directors are of the opinion that the Company is engaged in one segment of business, being the issue of Zero Dividend Preference shares to fund the operation of the Parent Company.
3. Administrative Expenses
The Company’s administrative expenses are met by its parent company.
4. Amounts due from Parent Company
| £000 | |
| Balance at start of period | - |
| Funds raised through ZDP share issue | 24,073 |
| Amount due in respect of issued share capital | 50 |
| Additions under undertaking agreement | 564 |
| Total due | 24,687 |
Funds raised through the ZDP share issue after the deduction of issue costs totaled £23.6m. These funds have been transferred to the Parent under an Undertaking Agreement pursuant to which the Parent agrees to contribute to the Company such amount as will result in the Company having sufficient assets to satisfy the then current or, as the case may be, the final capital entitlement of the ZDP shares.
The Directors believe the carrying amount due from the Parent approximates its fair value.
5.Zero Dividend Preference Shares
| Number of Shares | |
| Balance at start of period | 0 |
| 23,073,337 Share issued during the period | 23,072,337 |
| Balance at end of period | 23,072,337 |
The Company issued 23,073,337 Zero Dividend Preference Shares (“ZDP shares”) at 100 pence per share on 31 December 2015. The ZDP shares have an entitlement to receive a fixed cash amount on 30 November 2020, being the maturity date, of 125.65 pence per share, but do not receive any dividends or income distributions.
The ZDP shares do not carry the right to vote at general meetings of the Company, although they carry the right to vote as a class on certain proposals which would be likely to materially affect their position. In the event of a winding-up of the Company, the capital entitlement of the ZDP shares (except for any undistributed revenue profits) will rank ahead of ordinary shares but behind other creditors of the Company.
The fair value of the ZDP shares at 30 June 2016, based on the quoted market price at that date, was 25,368,483. The fair value of the ZDP shares is classified as level 1 under the hierarchy of fair value measurements.
6. Share capital
The Company has one class of share which carries no right to fixed income. The authorised and issued share capital of the Company is 50,000 ordinary share issued at £1 which have been 25% called.
7. Related Parties
The Directors are all directors of the Parent and received no remuneration for their services to the Company during the period.