WESSEX WATER SERVICES
FINANCE PLC
Annual Report and Financial Statements
30 June 2024
Registered in England and Wales No. 03704265
1
Contents
Page
Strategic report
2
Directors’ report
4
Statement of Directors’ responsibilities
7
Income Statement and Statement of Other Comprehensive Income
9
Statement of Financial Position
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Notes to the financial statements
13
Independent Auditor’s Report to the members of Wessex Water Services
Finance Plc
25
2
Strategic report
Principal activities
The sole activity of the Company is the raising of listed debt, the proceeds of which are lent to the
immediate parent company Wessex Water Services Ltd (WWSL).
The bonds are admitted to the Official List of the UK Listing Authority and to the London Stock
Exchange plc.
The bond proceeds are lent to WWSL on the same terms as the bonds themselves. WWSL
guarantees the bonds, hence protecting the Company from risk.
The carrying and fair values of the bonds are disclosed in note 10, along with a description of the risks
associated with the financial instruments.
Profit and dividend
There was no profit in the year (2023 - £nil).
The Directors did not recommend the payment of a dividend in either year.
Review of activities
The only activity of the Company is to issue listed debt on behalf of the parent company WWSL.
In September 2023 the Company established a £5bn Euro medium-term note programme in order to
facilitate the future issuance of bonds.
During the year the company issued £200m of fixed rate bonds at a rate of 6.5% with varying
maturities and repaid £90.5m in relation to the 3.52% £50m index linked bond.
There are no employees and no expenses apart from finance costs incurred by the Company.
Note 10(c) explains the strength of WWSL in terms of its Licence to operate. It also explains how the
risks on the Bonds are mitigated.
Principal risks and uncertainties
The Directors have identified the potential physical and transitional risks and opportunities presented
by rising temperatures and climate change for the business and have also considered the scale of
this risk to the Company. The climate risk has no direct impact on the Company itself however it
remains a principal risk due to its dependency on Wessex Water Services Limited (WWSL), for its
ability to raise funds and to recover the related inter-company receivables arising from back-to-back
loan arrangement with WWSL. The climate risk disclosures are included within the WWSL Annual
Report 2024 which can be found on their website (www.wessexwater.co.uk/our-performance).
Despite the current environment of volatile inflation, the Directors do not consider this a principal risk
due to the regulatory funding arrangement the parent company operates within.
The Company’s sole function is to raise borrowings and provide finance for its immediate parent
company, WWSL. The company is wholly reliant on principal and interest receipts from WWSL to
meet its external borrowings obligations.
The principal risk relates to the recoverability of the intercompany receivables from WWSL if it does
not meet its obligations in respect of its borrowings.
3
Future developments
The Directors expect the activities as detailed above to continue in the foreseeable future without
material change.
The Strategic Report was approved by the Board of Directors on 20 September 2024 and signed on
its behalf by:
Colin Skellett
Director
4
Directors’ report
The Directors present their Directors’ Report and the financial statements for Wessex Water Services
Finance PLC (Registered in England and Wales No. 03704265) for the year to 30 June 2024.
Internal control and risk management
The Company does not operate separately to WWSL and therefore its risks are governed by WWSL’s
policies and procedures. These policies and procedures are discussed in Note 10.
Charitable and political donations
There were no charitable or political donations in either year.
Going concern
The Directors have considered the financial position of the Company and cash flow forecasts for the
period from the date of approval of these Financial Statements through 31 December 2025 (the going
concern review period) and have concluded they will be able to meet their liabilities as they fall due
and comply with the covenants for the going concern review period. In coming to this conclusion, the
directors have evaluated the impact of the current economic conditions, the repayment profile of
existing loans and the required future financing requirements of the company.
In order to facilitate the future issuance of bonds the Company established a £5bn Euro medium-term
note programme on 6 September 2023. The first issuance under the new programme having taken
place in November 2023. The programme has since been renewed on 6 September 2024.
The Directors have also considered the ability of Wessex Water Services Limited, its immediate
parent company to whom all proceeds are lent, to meets its liabilities to the company as they fall due.
Wessex Water Services Limited meets its day-to-day working capital requirements and medium and
long term funding requirements through the cash and short term deposits described in note 17 and
the facilities described in note 18 of their financial statements. In June 2024 Wessex Water Services
Limited secured a £300m loan facility for 12 months with an option to extend the loan for a further 6
months and the undrawn revolving credit facilities referenced in note 18 were increased to £300m
with a maturity date of June 2027, both reflecting Wessex Water Services Limited’s ability to secure
finance. Under some of the facilities Wessex Water Services Limited is required to comply with an
interest cover and gearing covenant tested quarterly and the covenants remain the same in the new
facilities.
The Directors have considered the financial position of Wessex Water Services Ltd and cash flow
forecasts for the period from the date of approval of these Financial Statements through 31 December
2025 (the going concern review period) and have concluded they will be able to meet their liabilities
as they fall due and comply with the covenants for the going concern review period. In coming to this
conclusion, the directors have evaluated the impact of the ‘cost of living’ crisis on revenues and debt
collectability, the repayment of loans maturing in the going concern review period and the required
future financing requirements of the company and Ofwat’s announcement of the PR24 draft
determination and the company’s subsequent re-submission in August 2024, which is available on
the Company’s website at
https://corporate.wessexwater.co.uk/our-future/business-plan-2025-
2030/updates-to-our-business-plan-2025-30.
5
The Directors have noted there is further debt falling due for repayment in Wessex Water Services
Ltd within the going concern period, in particular £50m of European Investment Bank loan due in May
2025 and the new loan facility referred to above that, if extended, will mature at the end of December
2025. The Directors have considered the consistently strong operating performance, market
experience for Wessex Water Services Limited and other water companies, the current leverage and
credit rating of the bonds and a successful history of issuing bonds and raising debt over the past 20
years, most recently the bond issued in November 2023 and the new loan facilities obtained in June
2024 as noted above. Based on this consideration, as well as the time period available to raise the
required funding, the Directors are satisfied that the issuance of debt included within the forecasts for
the going concern period to repay the new facility and finance the capital programme over the period
is achievable.
On the assumption that the required funding noted above will be successfully raised by the company
for the reasons noted above, the Directors have considered a severe but plausible downside scenario,
to assess the impact on covenant compliance through the going concern review period. This includes
considering the impact of adverse macroeconomic factors including sustained lower inflation
combined with lower consumption and operational events such as asset and customer service failures
leading to regulatory enforcement. In addition, we have considered regulatory impacts such as the
ongoing Ofwat price and tariff review, i.e. PR24, covering the period from April 2025 to March 2030.
In situations requiring mitigations to be deployed, Wessex Water Services Limited could reduce
discretionary expenditure, defer capital expenditure and/or cancel non-essential capital expenditure,
reduce the amount of dividend payable and raise additional finance.
Accordingly, after considering the forecasts, appropriate sensitivities, available facilities and the ability
to raise additional debt, the Directors have a reasonable expectation that Wessex Water Services
Limited has adequate resources to continue in operational existence and to comply with its financial
covenants for the going concern review period through to 31 December 2025; therefore, the Directors
continue to adopt the going concern basis in preparing the Financial Statements of Wessex Water
Services Finance PLC.
Directors
The Directors who held office during the year and up to the date of signing the financial statements
were as follows;
Colin Skellett
Mark Watts
Directors’ emoluments in respect of services to group companies will be disclosed in the accounts of
Wessex Water Ltd (WWL) and YTL Utilities (UK) Ltd. The services provided by the directors to the
Company are negligible in 2024.
Disclosure of information to auditor
The Directors who held office at the date of approval of this Directors’ Report confirm that, so far as
they are each aware, there is no relevant audit information of which the Company’s auditors are
unaware; and each Director has taken all the steps that ought to have been taken as a Director to
make themselves aware of any relevant audit information and to establish that the Company’s
auditors are aware of that information.
6
Corporate governance
The Board are appointed by the shareholders and meet regularly to review the financial and
operational performance of the Company. The Company does not operate separately to WWSL and
is specifically established for the raising of listed debt to on-lend to WWSL as noted in its principal
activities in the Strategic report. The risk management process includes clear accountabilities,
delegated authority limits and well-defined policies and procedures.
Re-appointment of auditor
Following a resolution of the Board, Ernst & Young LLP were re-appointed as the auditor of the
Company for the current financial year.
By order of the Board,
Colin Skellett, Director
20 September 2024
7
Statement of Directors’ responsibilities
The Directors are responsible for preparing the annual report and the financial statements in
accordance with applicable United Kingdom law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that
law the Directors have elected to prepare the Company’s financial statements in accordance with UK
adopted international accounting standards.
Under company law the directors must not approve the financial statements unless they are satisfied
that they give a true and fair view of the state of affairs of the Company and of the profit or loss for
that period.
In preparing these financial statements the Directors are required to:
• select suitable accounting policies in accordance with IAS 8 Accounting Policies, Changes in
Accounting Estimates and Errors and then apply them consistently;
• make judgements and accounting estimates that are reasonable and prudent;
• present information, including accounting policies, in a manner that provides relevant, reliable,
comparable and understandable information;
• provide additional disclosures when compliance with the specific requirements in IFRSs is
insufficient to enable users to understand the impact of particular transactions, other events and
conditions on the Company’s financial position and financial performance;
• in respect of the company’s financial statements, state whether UK adopted international
accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements; and
• prepare the financial statements on the going concern basis unless it is appropriate to presume
that the Company will not continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show
and explain the Company’s transactions and disclose with reasonable accuracy at any time the
financial position of the Company and enable them to ensure that the Company financial statements
comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Under applicable law and regulations, the directors are also responsible for preparing a strategic
report and Directors’ report, that comply with that law and those regulations. The Directors are
responsible for the maintenance and integrity of the corporate and financial information included on
the Company’s website.
8
Directors’ responsibility statement
The Directors confirm, to the best of their knowledge:
• that the financial statements, prepared in accordance with UK adopted international accounting
standards give a true and fair view of the assets, liabilities, financial position and profit for the
Company;
• that the annual report, including the strategic report, includes a fair review of the development and
performance of the business and the position of the Company together with a description of the
principal risks and uncertainties that they face; and
• that they consider the annual report, taken as a whole, is fair, balanced, and understandable and
provides the information necessary for shareholders to assess the Company’s position,
performance, business model and strategy.
9
Income Statement and Statement of Other Comprehensive Income
For the year ended 30 June 2024
Note
2024
2023
£000
£000
Interest income
3
165,474
142,050
Interest expense
3
(165,474)
(142,050)
Profit before and after tax, and total comprehensive
income
-
-
The notes on pages 13 to 24 are an integral part of these financial statements.
10
Statement of Financial Position
At 30 June 2024
Note
2024
2023
£000
£000
Non-current assets
Other financial assets
4
2,513,923
2,229,506
2,513,923
2,229,506
Current assets
Trade and other receivables
5
44,945
31,736
Other financial assets
4
-
90,524
Cash and cash equivalents
6
13
13
44,958
122,273
Total assets 2,558,881
2,351,779
Current liabilities
Trade and other payables
7
(44,945)
(31,736)
Other interest-bearing loans and borrowings
8
-
(90,524)
(44,945)
(122,260)
Non-current liabilities
Other interest-bearing loans and borrowings
8
(2,513,923)
(2,229,506)
(2,513,923)
(2,229,506)
Total liabilities
(2,558,868)
(2,351,766)
Net assets
13
13
Equity
Share capital
9
13
13
Retained earnings
-
-
Total equity
13
13
The notes on pages 13 to 24 are an integral part of these financial statements.
The financial statements were approved by the Board of Directors on 20 September 2024 and signed
on its behalf by:
Colin Skellett
Director
11
Statement of Changes in Equity
For the year ended 30 June 2024
Note
Share
capital
Retained
earnings
Total
equity
£000
£000
£000
Balance at 1 July 2022
13
-
13
Total comprehensive income for the
year
-
-
-
Balance at 30 June 2023 9 13
-
13
Balance at 1 July 2023
13
-
13
Total comprehensive income for the
year
-
-
-
Balance at 30 June 2024 9 13
-
13
12
Statement of Cash Flows
For the year ended 30 June 2024
Note
2024
2023
£000
£000
Cashflow used in operating activities
Profit for the year
-
-
Adjustments for:
Finance Income
3
(165,474)
(142,050)
Finance Cost
3
165,474
142,050
-
-
Working Capital Adjustments:
(Increase) in trade and other receivables
(13,209)
(4,521)
Increase in trade and other payables
13,209
4,521
Interest paid
(65,027)
(55,097)
Interest received
65,027
55,097
Issuance of Debt
198,203
297,957
Proceeds from Issue of Bonds
(198,203)
(297,957)
Repayment of Bonds
(90,524)
-
Proceeds from repayment of debt
90,524
-
Net cashflow used in operating activities
-
-
Net cashflow used in investing activities
-
-
Net cashflow used in financing activities
-
-
Increase/(decrease) in cash and cash equivalents
-
-
Cash and cash equivalents at 1 July
13
13
Cash and cash equivalents at 30 June 6 13
13
13
Notes to the financial statements
1. Accounting policies
1.1 Basis of preparation
Wessex Water Services Finance Plc (the “Company”) is a public company limited by shares which
are privately held but whose debts, in the form of bonds, are listed on the London Stock Exchange.
The Company is incorporated, domiciled and registered in England in the UK. The registered number
is 03704265 and the registered address is Wessex Water Operations Centre, Claverton Down, Bath,
BA2 7WW.
The sole activity of the Company is the raising of listed debt, the proceeds of which are lent to the
immediate parent company Wessex Water Services Limited (WWSL).
The Company financial statements have been prepared and approved by the Directors in accordance
with UK adopted international accounting standards in accordance with the provisions of the
Companies Act 2006. The accounting policies set out below have, unless otherwise stated, been
applied consistently to all periods presented in these financial statements.
Judgements made by the Directors, in the application of these accounting policies, that have
significant effect on the financial statements and estimates with a significant risk of material
adjustment in the next year are discussed in note 15.
In preparing the financial statements, the Directors have considered the impact of the physical and
transition risks of climate change and have concluded that it does not have a material impact on the
recognition and measurement of the assets and liabilities in these financial statements as at 30 June
2024.
1.2 Measurement convention
The financial statements are prepared on a cost basis and presented in pounds sterling which is the
company’s functional and presentational currency.
1.3 Going concern
The Directors have considered the financial position of the Company and cash flow forecasts for the
period from the date of approval of these Financial Statements through 31 December 2025 (the going
concern review period) and have concluded they will be able to meet their liabilities as they fall due
and comply with the covenants for the going concern review period. In coming to this conclusion, the
directors have evaluated the impact of the current economic conditions, the repayment profile of
existing loans and the required future financing requirements of the company.
In order to facilitate the future issuance of bonds the Company established a £5bn Euro medium-term
note programme on 6 September 2023. The first issuance under the new programme having taken
place in November 2023. The programme has since been renewed on 6 September 2024.
The Directors have also considered the ability of Wessex Water Services Limited, its immediate
parent company to whom all proceeds are lent, to meets its liabilities to the company as they fall due.
14
1.3 Going concern (continued)
Wessex Water Services Limited meets its day-to-day working capital requirements and medium and
long term funding requirements through the cash and short term deposits described in note 17 and
the facilities described in note 18 of their financial statements. In June 2024 Wessex Water Services
Limited secured a £300m loan facility for 12 months with an option to extend the loan for a further 6
months and the undrawn revolving credit facilities referenced in note 18 were increased to £300m
with a maturity date of June 2027, both reflecting Wessex Water Services Limited’s ability to secure
finance. Under some of the facilities Wessex Water Services Limited is required to comply with an
interest cover and gearing covenant tested quarterly and the covenants remain the same in the new
facilities.
The Directors have considered the financial position of Wessex Water Services Ltd and cash flow
forecasts for the period from the date of approval of these Financial Statements through 31 December
2025 (the going concern review period) and have concluded they will be able to meet their liabilities
as they fall due and comply with the covenants for the going concern review period. In coming to this
conclusion, the directors have evaluated the impact of the ‘cost of living’ crisis on revenues and debt
collectability, the repayment of loans maturing in the going concern review period and the required
future financing requirements of the company and Ofwat’s announcement of the PR24 draft
determination and the company’s subsequent re-submission in August 2024, which is available on
the Company’s website at
https://corporate.wessexwater.co.uk/our-future/business-plan-2025-
2030/updates-to-our-business-plan-2025-30.
The Directors have noted there is further debt falling due for repayment in Wessex Water Services
Ltd within the going concern period, in particular £50m of European Investment Bank loan due in May
2025 and the new loan facility referred to above that, if extended, will mature at the end of December
2025. The Directors have considered the consistently strong operating performance, market
experience for Wessex Water Services Limited and other water companies, the current leverage and
credit rating of the bonds and a successful history of issuing bonds and raising debt over the past 20
years, most recently the bond issued in November 2023 and the new loan facilities obtained in June
2024 as noted above. Based on this consideration, as well as the time period available to raise the
required funding, the Directors are satisfied that the issuance of debt included within the forecasts for
the going concern period to repay the new facility and finance the capital programme over the period
is achievable.
On the assumption the required funding noted above will be successfully raised by the company for
the reasons noted above, the Directors have considered a severe but plausible downside scenario,
to assess the impact on covenant compliance through the going concern review period. This includes
considering the impact of adverse macroeconomic factors including sustained lower inflation
combined with lower consumption and operational events such as asset and customer service failures
leading to regulatory enforcement. In addition, we have considered regulatory impacts such as the
ongoing Ofwat price and tariff review, i.e. PR24, covering the period from April 2025 to March 2030.
In situations requiring mitigations to be deployed, Wessex Water Services Limited could reduce
discretionary expenditure, defer capital expenditure and/or cancel non-essential capital expenditure,
reduce the amount of dividend payable and raise additional finance.
15
1.3 Going concern (continued)
Accordingly, after considering the forecasts, appropriate sensitivities, available facilities and the ability
to raise additional debt, the Directors have a reasonable expectation that Wessex Water Services
Limited has adequate resources to continue in operational existence and to comply with its financial
covenants for the going concern review period through to 31 December 2025; therefore, the Directors
continue to adopt the going concern basis in preparing the Financial Statements of Wessex Water
Services Finance PLC.
1.4 Financial instruments
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and bank deposits.
Financial assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Company’s business model for managing them. The Company
initially measures a financial asset at its fair value plus transaction costs.
In order for a financial asset to be classified and measured at amortised cost or fair value through
OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on
the principal amount outstanding. This assessment is referred to as the SPPI test and is performed
at an instrument level.
The Company’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both.
The Company’s financial assets include trade and other receivables, intercompany loans.
Subsequent measurement
Financial assets at amortised cost (debt instruments)
This category is the most relevant to the Company. The Company measures financial assets at
amortised cost if both of the following conditions are met:
• The financial asset is held within a business model with the objective to hold financial assets
in order to collect contractual cash flows; and
• The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortised cost are subsequently measured using the effective interest (EIR)
method and are subject to impairment. Gains and losses are recognised in profit or loss when the
asset is derecognised, modified or impaired.
The Company’s financial assets at amortised cost includes intercompany loans repayable in more
than 12 months, and interest receivable.
16
1.4 Financial instruments (continued)
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial
assets) is primarily derecognised (i.e., removed from the Company’s statement of financial position)
when:
• The rights to receive cash flows from the asset have expired; or
• The Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
Impairment of financial assets
The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not
held at fair value through profit or loss. ECLs are based on the difference between the contractual
cash flows due in accordance with the contract and all the cash flows that the Company expects to
receive, discounted at an approximation of the original effective interest rate.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant
increase in credit risk since initial recognition, ECLs are provided for credit losses that result from
default events that are possible within the next 12-months (a 12-month ECL). For those credit
exposures for which there has been a significant increase in credit risk since initial recognition, a loss
allowance is required for credit losses expected over the remaining life of the exposure, irrespective
of the timing of the default (a lifetime ECL).
The Company has based the calculation of its ECL provision on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic environment.
Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit
or loss or financial liabilities at amortised cost, as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of financial liabilities at
amortised cost, net of directly attributable transaction costs.
The Company’s financial liabilities include trade and other payables and loans and borrowings.
Subsequent measurement – Financial liabilities at amortised cost
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses
are recognised in profit or loss when the liabilities are derecognised as well as through the EIR
amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the
statement of profit or loss.
17
1.4 Financial instruments (continued)
This category generally applies to interest-bearing loans and borrowings. For more information, refer
to Note 10.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition of
a new liability. The difference in the respective carrying amounts is recognised in the statement of
profit or loss.
1.5 Finance income
Finance income represents interest income on loans receivable from the immediate Parent Company.
Interest receivable is calculated using the effective interest rate method. The effective interest rate
method is a method of calculating the amortised cost of a financial asset or liability and of allocating
the interest income or expense over the relevant period. The effective interest rate is the rate that
exactly discounts estimated future cash payments or receipts through the expected life of the financial
asset or liability or, where appropriate, a shorter period.
1.6 Taxation
Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the
income statement except to the extent that it relates to items recognised directly in equity, in which
case it is recognised in equity.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using
tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax
payable in respect of previous years. Current tax for the year has been nil (2023: £nil).
Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes. The amount of deferred
tax provided is based on the expected manner of realisation or settlement of the carrying amount of
assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.
Deferred tax for the year has been nil (2023: £nil).
1.7 Dividends
Dividends are proposed by the Board and immediately afterwards are authorised by the shareholder
and are therefore recognised as a liability in the accounts until paid. The company has not paid
dividends in 2024 as there were no distributable reserves (2023: £nil).
1.8 Cash flows
Cash flows to and from the parent company are considered operating in nature based on the sole
activity of the Company being to raise debt, the proceeds of which are lent to the immediate parent
company Wessex Water Services Limited.
18
1.9 Changes in accounting policies and disclosures
In the year, the Company adopted the amendments to IAS12 “Income Taxes” relating to “International
Tax Reform – Pillar Two Rules” issued by the International Standards Boards (IASB) in May 2023.
The amendments provide a temporary mandatory exception from recognising and disclosing
information about deferred tax assets and liabilities arising from the implementation of Pillar Two
model rules.
1.10 IFRS Standards issued but not effective
There are no IFRS Standards issued but not effective as at 30 June 2024 that will have a material
impact on the Financial Statements.
2. Operating profit
There were no expenses incurred by the company apart from finance costs in either year as they
were borne by other group companies. Audit fees were £35,800, and were borne by its immediate
parent company, Wessex Water Services Ltd (2023: £29,120). Non audit fees totalled £3,000 and
related to the issue of bonds and were borne by its immediate parent company, Wessex Water
Services Ltd (2023: £11,736).
The Directors did not receive any remuneration from the Company during the year ended 30 June
2024 (2023: £nil). The Directors are also directors of other companies in the Wessex Water Limited
group and are remunerated for their services to the group as a whole. As the services provided to
the Company are incidental to their roles a £nil allocation has been made to Wessex Water Services
Finance plc. Other than the directors, the company had no employees.
3. Interest Income and expense
2024
2023
£000
£000
Interest income
Interest receivable from immediate parent company
165,474
142,050
165,474
142,050
Interest expense
Interest payable on listed bonds
(165,474)
(142,050)
(165,474)
(142,050)
Net interest payable
-
-
4. Other financial assets
2024
2023
£000
£000
Current
Intercompany loans repayable in less than 12 months -
90,524
Non-current
Intercompany loans repayable in more than 12 months 2,513,923
2,229,506
19
4. Other financial assets (continued)
Intercompany loans consist of bonds lent to the immediate parent company with the same terms as
bonds issued by the Company. None of the loans to the parent are past due, and no material
expected credit loss provision has been recognised. See Note 8 for details of bonds issued by the
Company.
5. Trade and other receivables
2024
2023
£000
£000
Intercompany interest receivable 44,945
31,736
Amounts included in interest receivable above are due from the immediate parent company and
reflect the terms of the external borrowings included in note 8.
6. Cash and cash equivalents
2024
2023
£000
£000
Cash at bank 13
13
7. Trade and other payables
2024
2023
£000
£000
Current
Accrued expenses
44,945
31,736
8. Other interest-bearing loans and borrowings
2024
2023
£000
£000
Current liabilities
Listed bonds
-
90,524
Non-current liabilities
Listed bonds
2,513,923
2,229,506
20
8. Other interest-bearing loans and borrowings (continued)
All bonds are listed on the London Stock Exchange and are wholly guaranteed by Wessex Water
Services Ltd. Interest is payable based on the nominal interest rate as disclosed. Index-linked bonds
increase in value annually in line with the Retail Prices Index.
9. Share capital
2024
2023
£
£
Authorised shares
Ordinary shares of £1 each
50,000
50,000
Ordinary shares issued and fully paid
At 1 July 2023 and 30 June 2024 – quantity
2
2
At 1 July 2023 and 30 June 2024 - £1.00 per share
2
2
Ordinary shares issued and partially paid
At 1 July 2023 and 30 June 2024 – quantity
49,998
49,998
At 1 July 2023 and 30 June 2024 - £0.26p per share
12,999
12,999
21
10. Financial Instruments
(a) Fair values of financial instruments
Fair value is the amount at which a financial instrument could be exchanged in an arms-length
transaction between informed and willing parties, other than a forced or liquidation sale. The fair value
of short term and floating rate borrowings approximate to book value. The fair value of long-term fixed
rate borrowings has been calculated using market values because they are all listed in recognised
financial markets. The valuation of intercompany loans to the parent is calculated by reference to the
value of the underlying long-term borrowing instrument used to finance the loan.
The IFRS 13 fair value hierarchy is a categorisation relating to the extent that the fair value can be
determined by reference to comparable market values. The hierarchy ranges from level 1 where
instruments are quoted on an active market through to level 3 where the assumptions used to derive
fair value do not have comparable market data.
The fair values of intercompany loans are classified as level 2 in the IFRS 13 fair value hierarchy and
have a carrying value of £2,513,923k and a fair value of £2,378,906k. (2023: £2,320,030k and
£2,273,688k).
The fair values of listed bonds are classified as level 1 in the IFRS 13 fair value hierarchy and have a
carrying value of £2,513,923k and a fair value of £2,378,906k. (2023: £2,320,030k and £2,273,688k).
It is the Company’s policy to recognise all the transfers into the levels and transfers out of the levels
at the date of the event or change in circumstances that caused the transfer. No liabilities are classified
as level 3.
(b) Cash flow hedges
The Company does not have any cash flow hedges (2023: £nil).
(c) Liquidity risk
Financial risk management
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall
due.
The immediate parent company is a regulated utility with a five-year settlement with the industry
regulator, which allows it to plan to a certain degree of accuracy the financial obligations in the medium
term. This means that the need to obtain additional finance has been spread over future years and is
not considered onerous in any one regulatory period.
22
10. Financial Instruments (continued)
The following are the contractual maturities of financial liabilities, including estimated interest
payments:
(d) Market risk
There is no exposure to equity or foreign currency risk, the interest rate risk is shown below.
Interest rate risk
2024
2023
£000
£000
Fixed rate instruments
1,586,417
1,388,113
Index linked instruments
927,506
931,917
2,513,923
2,320,030
The Company policy is to keep an appropriate mix of fixed rate and index linked financial instruments.
Sensitivity
There are no floating rate instruments where the interest charge is subject to changes in the interest
rate.
Interest rate sensitivity
All bonds are either fixed rate or index linked so movements in general interest rates do not have an
effect on the Company.
23
10. Financial Instruments (continued)
Inflation sensitivity
Index linked bonds are sensitive to movements in the inflation rate. At 1% increase in the inflation
rate would have the following effects.
2024
2023
£000
£000
Interest expense
(9,275)
(9,319)
Interest income
9,275
9,319
Net assets
-
-
(e) Capital Management
For the purpose of the Company’s capital management, capital includes issued capital, share
premium and all other equity reserves attributable to the equity holders of the parent. The primary
objective of the Company’s capital management is to maximise the shareholder value.
The Company manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants. To maintain or adjust the capital structure,
the Company may adjust the dividend payment to shareholders, return capital to shareholders or
issue new shares. The Company monitors capital using a gearing ratio for the parent company
Wessex Water Services Ltd (WWSL), which is net debt divided Regulatory Capital Value (RCV).
WWSL’s policy is to keep the gearing ratio below 70%. The Company includes within net debt, interest
bearing loans and borrowings, less cash and short-term deposits.
11. Contingencies
There are no material contingent liabilities at 30 June 2024 for which provision has not been made in
these accounts (2023: £nil).
12. Related parties
Significant transactions with related parties
2024
2023
£000
£000
Interest Income:
Immediate parent company
165,474
142,050
Year-end balances owing by:
Immediate parent company
2,558,868
2,351,766
Terms and conditions of transactions with related parties
The interest income received from related parties is made on terms equivalent to those that prevail in
arm’s length transactions. Note 10(c) explains the strength of WWSL in terms of its Licence to
operate. It also explains how the risks on the Bonds are mitigated. WWSL guarantees the bonds,
hence protecting the Company from risk.
24
13. Ultimate parent company and parent company of larger group
The smallest group into which the financial statements of the Company are consolidated is that
headed by Wessex Water Ltd, a company incorporated in England whose registered address is
Wessex Water Operations Centre, Claverton Down, Bath, BA2 7WW.
The pre-penultimate, penultimate and ultimate holding companies are YTL Corporation Berhad, Yeoh
Tiong Lay & Sons Holdings Sdn Bhd (both registered in Malaysia) and Yeoh Tiong Lay & Sons Family
Holdings Ltd registered in Jersey.
The largest group in which the results of the Company are consolidated is that headed by YTL
Corporation Berhad incorporated in Malaysia. The consolidated financial statements of these groups
are available to the public and can be obtained from Menara YTL, 205 Jalan Bukit Bintang, 55100
Kuala Lumpur, Malaysia.
14. Subsequent Events
There were no subsequent events requiring disclosure in these financial statements.
15. Accounting estimates and judgements
There were no accounting estimates and judgements made during the year that would have a material
impact on the financial statements.
25
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF WESSEX WATER SERVICES
FINANCE PLC
Opinion
We have audited the financial statements of Wessex Water Services Finance Plc for the year ended
30 June 2024 which comprise the Income Statement and Statement of Other Comprehensive Income,
the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows
and the related notes 1 to 15, including material accounting policy information. The financial reporting
framework that has been applied in their preparation is applicable law and UK adopted international
accounting standards.
In our opinion, the financial statements:
• give a true and fair view of the company’s affairs as at 30 June 2024 and of its result for the year
then ended;
• have been properly prepared in accordance with UK adopted international accounting standards;
and
• have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor’s
responsibilities for the audit of the financial statements section of our report. We are independent of
the company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities,
and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern
basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the
directors’ assessment of the company’s ability to continue to adopt the going concern basis of
accounting included the following procedures:.
• We gained an understanding of the process undertaken by management to perform the going
concern assessment, including discussion with management to ensure key factors were taken
into account.
• We considered the Company’s access to available sources of liquidity and agreed available
facilities to underlying agreements and the extent of drawings thereunder to external
confirmations.
• We considered the results of other audit procedures and other knowledge obtained in the audit
and whether it was consistent with or contradicted management’s assumptions.
26
• We inquired of management as to their knowledge of events or conditions beyond the period
of their assessment that may cast significant doubt on the entity’s ability to continue as a going
concern.
• We assessed the appropriateness of disclosures within the Annual Report and Accounts.
As the Company is reliant on Wessex Water Services Limited (WWSL) to meet its intercompany
commitments, we performed procedures on the Wessex Water Services Limited going concern
assessment prepared for the period through to 31 December 2025, to do this we:
• Gained an understanding of the process undertaken by management to perform the going
concern assessment, including discussion with management to ensure key factors were taken
into account.
• Obtained management’s forecast cash flows and covenant calculations covering the period
from 01 July 2024 to 31 December 2025 and agreed these to the Board approved budgets
and forecasts.
• Inquired of management as to their knowledge of events or conditions beyond the period of
their assessment that may cast significant doubt on the entity’s ability to continue as a going
concern.
• Tested the mathematical accuracy of the cash flow forecasts, as well as the calculation of the
forecast covenants.
• Compared forecast future cashflows to historical data, ensuring variations are in line with our
expectations, such as historical performance, and understanding of the business and
considered the reliability of past forecasts.
• Challenged WWSL’s ability to obtain additional liquidity, with the support of our debt advisory
specialists, assessed WWSL’s ability to raise finance in context its credit rating and situation
facing the wider water industry. We agreed available facilities to underlying agreements and
the extent of drawings thereunder to external confirmations.
• Evaluated the timing of the additional funding during the going concern period against
management’s treasury plan.
• Performed forecast covenant testing and considered any indicator of breach in the
assessment period.
• Considered the challenging but plausible downside scenario modelled by management in
respect of the assumptions used in the going concern assessment and performed sensitivity
analysis on management’s forecast cashflows to understand how more severe the conditions
would have to be to breach liquidity and/or covenants.
• We considered regulatory impacts such as the ongoing Ofwat price and tariff review, i.e.,
PR24, following Ofwat’s Draft Determination announcement on 11 July 2024 and the
resubmission made by WWSL in August 2024. This covers the period from April 2025 to March
2030, which includes part of the going concern assessment period.
• Verified that management’s going concern assessment took into account the WWSL's
updated PR24 submission, as well as a downside scenario reflecting the possibility of Ofwat's
final determination being less favourable than the revised plan.
• Understood and challenged the Board’s controllable mitigation plans and the forecast impact
on the ability of the business to operate within its financial covenants. We obtained supporting
documentation to evaluate the plausibility and achievability of management’s mitigation plans
considering actions delivered to date.
27
• Considered the results of other audit procedures and other knowledge obtained in the audit
and whether it was consistent with or contradicted management’s assumptions.
• Assessed the appropriateness of disclosures within the Annual Report and Accounts.
Our key observations:
• In November 2023, the Company secured a £200 million bond.
• In June 2024, the Company’s immediate parent WWSL secured a facility for £300m maturing
in 12 months with an option at its discretion, to extend for a further 6 months thereafter.
• WWSL increased its revolving bank facility in June 2024, from £225 million to £300million. The
undrawn amount of the revolving credit facility as at 31 August 2024 is £105m
• Management’s going concern model incorporates the WWSL's updated PR24 submission, as
well as a downside scenario reflecting the possibility of Ofwat's final determination being less
favourable than the revised plan.
• WWSL has £66m of debt maturity payments to make from the date of approval of the financial
statements to the end of the going concern assessment period.
• WWSL will need to raise further funding in the going concern assessment period to be able to
repay the new £300m facility and finance the capital programme over the period.
• Considering the assessment made by the Directors, as disclosed in the basis of preparation,
the Directors are satisfied that the likelihood of not securing the forecasted debt within the
going concern period is remote.
Based on the work we have performed, we have not identified any material uncertainties relating to
events or conditions that, individually or collectively, may cast significant doubt on the company’s
ability to continue as a going concern for a period to 31 December 2025.
Our responsibilities and the responsibilities of the directors with respect to going concern are
described in the relevant sections of this report. However, because not all future events or conditions
can be predicted, this statement is not a guarantee as to the company’s ability to continue as a going
concern.
Overview of our audit approach
Key audit
matters
• Expected credit losses on Intercompany receivables
Materiality
• Overall materiality of £12.8m which represents 0.5% of Total
Assets.
28
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance
materiality determine our audit scope for the company. This enables us to form an opinion on the
financial statements. We take into account size, risk profile, the organisation of the company and
effectiveness of controls, the potential impact of climate change and changes in the business
environment when assessing the level of work to be performed. All audit work was performed directly
by the audit engagement team.
Changes from the prior year
There are no scoping changes from the prior year.
Climate change
There has been increasing interest from stakeholders as to how climate change will impact all
companies. The company has determined that there are no significant future impacts from climate
change on its operations. This is explained on page 2 in the principal risks and uncertainties, which
form part of the “Other information,” rather than the audited financial statements. Our procedures on
these unaudited disclosures therefore consisted solely of considering whether they are materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit or
otherwise appear to be materially misstated, in line with our responsibilities on “Other information”.
Our audit effort in considering the impact of climate change on the financial statements was focused
on evaluating management’s assessment that although the climate risk has no direct impact on the
Company itself however it remains a principal risk due to its dependency on WWSL, for its ability to
raise funds and to recover the related inter-company receivables arising from back-to-back loan
arrangement with WWSL. As disclosed by the Directors in the strategic report , the climate risk
disclosures for WWSL are included within its Annual Report 2024. As such there is no significant
impact of climate change risk on the adequacy of the Company disclosures in the financial statements.
No issues affecting the carrying value of assets that would lead to a material misstatement in the
financial statements due to climate change, were noted in our audit.
We also challenged the Directors’ considerations of climate change risks in their assessment of going
concern and associated disclosures, in context of the Company’s dependency on WWSL.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period and include the most significant assessed
risks of material misstatement (whether or not due to fraud) that we identified. These matters included
those which had the greatest effect on: the overall audit strategy, the allocation of resources in the
audit; and directing the efforts of the engagement team. These matters were addressed in the context
of our audit of the financial statements as a whole, and in our opinion thereon, and we do not provide
a separate opinion on these matters.
29
Risk
Our response to the risk
Key observations
communicated to those
charged with governance
Expected credit losses on
Intercompany receivable
Refer to Note 4 Other financial
assets
The balance sheet includes
intercompany receivables of
£2.5 billion (2023: £2.3 billon)
which are due from the
immediate holding company
Wessex Water Services
Limited.
This risk is consistent with
our prior year audit. We have
identified a risk of impairment
related to the recoverability of
intercompany receivables.
Management has applied the
expected credit loss model
under IFRS 9: “Financial
Instruments” to determine
whether a provision is
necessary.
• We have inspected the
inter company loan
agreements and
confirmed that the terms
are consistent with the
terms of the company’s
borrowings. We have
confirmed the disclosures
are consistent with those
agreements.
• We considered the ability
of Wessex Water
Services Limited
(‘WWSL’) to settle their
intercompany position,
and, in turn, the
recoverability of the
intercompany receivables
held by the company.
• We reperformed an
expected credit loss
calculation considering
any change in credit risk,
the exposure at default,
probability of default, and
loss given default and
assessed for any
contradictory evidence to
management’s
assumptions.
The intercompany
receivables are valued
appropriately.
There are no changes to key audit matters.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of
identified misstatements on the audit and in forming our audit opinion.
30
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably
be expected to influence the economic decisions of the users of the financial statements. Materiality
provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the company to be £12.8 million (2023: £11.8 million), which is 0.5%
(2023: 0.5%) of Total Assets. We believe that Total Assets provides us with an appropriate and
generally accepted benchmark for materiality for a company holding listed debt where the lenders to
the company are focused on the ability of the company to repay back the loan and debt service costs.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to
reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected
misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the company’s overall control
environment, our judgement was that performance materiality was 75% (2023: 75%) of our planning
materiality, namely £9.6m (2023: £8.8m). We have set performance materiality at this percentage
due to past history of few misstatements indicating a lower risk of material misstatement in the
financial statements.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with those charged with governance that we would report to them all uncorrected audit
differences in excess of £0.6m (2023: £0.6m), which is set at 5% of planning materiality, as well as
differences below that threshold that, in our view, warranted reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality
discussed above and in light of other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor’s report thereon. The directors are responsible for the other information
contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent
otherwise explicitly stated in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appears to be materially misstated. If we identify such material
inconsistencies or apparent material misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of the other information, we are required
to report that fact.
31
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• the information given in the strategic report and the directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
• the strategic report and directors’ report have been prepared in accordance with applicable legal
requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the
course of the audit, we have not identified material misstatements in the strategic report or directors’
report.
We have nothing to report in respect of the following matters in relation to which the Companies Act
2006 requires us to report to you if, in our opinion:
• adequate accounting records have not been kept, or returns adequate for our audit have not been
received from branches not visited by us; or
• the financial statements are not in agreement with the accounting records and returns; or
• certain disclosures of directors’ remuneration specified by law are not made; or
• we have not received all the information and explanations we require for our audit
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 7, the directors are
responsible for the preparation of the financial statements and for being satisfied that they give a true
and fair view, and for such internal control as the directors determine is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the directors either intend to liquidate the company or
to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
32
Explanation as to what extent the audit was considered capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting
one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion. The extent to which our procedures are capable
of detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those
charged with governance of the company and management.
• We obtained an understanding of the legal and regulatory frameworks that are applicable to
the company and determined that the most significant are:
o UK adopted international accounting standards
o Tax Legislation (governed by HM Revenue and Customs)
o Companies Act 2006
o Listing requirements of the London Stock Exchange
• We understood how Wessex Water Services Finance Plc is complying with those frameworks
by reading internal policies and codes of conduct and assessing the entity level control
environment, including the level of oversight of those charged with governance. The Company
is within the Wessex Water Ltd (WWL) Group and we made enquiries of the Group’s legal
counsel and internal audit of known instances of non-compliance or suspected non-
compliance with laws and regulations of the UK ultimate parent company and all its
subsidiaries. We corroborated our enquiries through review of correspondence with regulatory
bodies.
• We assessed the susceptibility of the company’s financial statements to material
misstatement, including how fraud might occur by making enquiries of senior management.
We planned our audit to identify risks of management override, and performed audit
procedures to address the potential for management bias, particularly over areas involving
significant estimation and judgement, in particular expected credit loss provision on amounts
due from parent undertaking.
• Based on this understanding we designed our audit procedures to identify non-compliance
with such laws and regulations. Our procedures involved making enquiries of key
management and legal counsel, reviewing key policies, inspecting legal registers and
correspondence with regulators and reading key management meeting minutes. We also
completed procedures to conclude on the compliance of significant disclosures in the Annual
Report and Financial Statements with the requirements of the relevant accounting standards
and UK legislation.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at https://www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
33
Other matters we are required to address
• Following the recommendation from those charged with governance we were appointed by the
company on 6 March 2018 to audit the financial statements for the year ending 30 June 2018
and subsequent financial periods. The period of total uninterrupted engagement including
previous renewals and reappointments is 7 years, covering the years ending 30 June 2018 to 30
June 2024.
• The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the
company and we remain independent of the company in conducting the audit.
• The audit opinion is consistent with the additional report to those charged with governance.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of
Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to
the company’s members those matters we are required to state to them in an auditor’s report and for
no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility
to anyone other than the company and the company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Simon O’Neill (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
Bristol
20 September 2024