Financial statements
NOTES TO THE FINANCIAL STATEMENTS
41. Related party transactions
Group During the year, Group companies entered into the following transactions with related parties who are not members of the Group:
|
2010 £m |
2009 £m |
|
|
Sales of goods and services |
||
|
Fellow subsidiaries of Pennon Group Plc |
0.8 |
0.6 |
|
Lakeside Energy from Waste Limited |
0.2 |
- |
|
Viridor Laing (Greater Manchester) Limited |
49.0 |
- |
|
Purchase of goods and services |
||
|
Fellow subsidiaries of Pennon Group Plc |
0.9 |
0.7 |
|
Pennon Group Plc |
3.4 |
3.3 |
|
Lakeside Energy from Waste Limited |
3.8 |
- |
|
Income from provision of loan finance |
||
|
Lakeside Energy from Waste Limited |
1.0 |
- |
|
Viridor Laing (Greater Manchester) Limited |
1.6 |
- |
|
Ineos Runcorn (TPS) Holdings Limited |
0.5 |
- |
|
Payment for provision of loan finance |
||
|
Pennon Group Plc |
19.4 |
17.6 |
|
Dividends paid |
||
|
Pennon Group Plc |
26.2 |
19.4 |
Sales and purchases of goods and services with fellow subsidiaries of Pennon Group Plc are undertaken at normal commercial terms and conditions that would also be available to unrelated third parties. Services supplied by Pennon Group Plc are provided at cost.
Sales and purchases of goods and services with joint venture undertakings are undertaken at normal commercial terms and conditions that would also be available to unrelated third parties.
Year end balances
|
2010 £m |
2009 £m |
|
|
Borrowings |
||
|
Pennon Group Plc |
420.8 |
339.1 |
|
Receivables due from related parties |
||
|
Fellow subsidiaries of Pennon Group Plc |
0.1 |
0.1 |
|
Lakeside Energy from Waste Limited |
19.5 |
10.6 |
|
Viridor Laing (Greater Manchester) Limited |
20.7 |
- |
|
Ineos Runcorn (TPS) Holdings Limited |
5.7 |
- |
|
Payables due to related parties |
||
|
Pennon Group Plc |
0.9 |
0.9 |
|
Fellow subsidiaries of Pennon Group Plc |
0.2 |
0.1 |
|
Lakeside Energy from Waste Limited |
5.0 |
- |
The £5.0m payable to relates to consortium relief due to Lakeside Energy from Waste Limited.
Interest on £95.8m of the loans is charged at a fixed rate of 5.0% and on £128.3m at a fixed rate of 6% (2009 £104.8m at 5.0% and £76.3m at 6% respectively). Interest on the balance of the loans is charged at Barclays Bank PLC base rate +1% (2009 Barclays Bank PLC base rate +1%). The loans are repayable in instalments over the period 2011 to 2015.
All amounts relate to trading balances except £45.9m of loans included within receivables due for repayment in instalments between 2011 and 2030 (2009 £10.6m). Interest is charged at rates ranging from 6%to 15%.
Company
During the year, the Company entered into the following transactions with subsidiary undertakings and Pennon Group Plc.
|
2010 £m |
2009 £m |
|
|
Dividends |
||
|
Dividends received from subsidiaries |
32.1 |
27.4 |
|
Dividends paid to Pennon Group Plc |
26.2 |
19.4 |
|
Payment for provision of loan finance |
||
|
Pennon Group Plc |
8.8 |
10.2 |
|
Subsidiary undertakings |
0.1 |
- |
Year end balances
|
2010 £m |
2009 £m |
|
|
Receivables due from related parties |
||
|
Subsidiary undertakings |
- |
- |
|
Borrowings |
||
|
Pennon Group Plc |
209.5 |
204.5 |
|
Subsidiary undertakings |
4.9 |
- |
Interest on £62.5m of the loans is charged at a fixed rate of 5.0% and on £42.3m at a fixed rate of 6.0% (2009 £62.5m at 5.0% and £39.8m at 6% respectively). Interest on the balance of the loans is charged at Barclays Bank PLC base rate +1% (2007 Barclays Bank PLC base rate +1%). The loans are repayable in instalments over the period 2011 to 2015.
Other loans are short-term borrowings between companies within the Viridor Group. Interest on 50% of the debt outstanding at any time as charged at 6% and the balance at Barclays bank base rate + 0.25%.