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Investor Presentaiton

Historical financial performance (cont.) Results . Tax • During the six month period ended 30 September 2016, Tideway reported a loss of £30.3m. We do not consider the reported loss in the period is a reflection of the performance of the business. The loss reflects the movement in the fair value in the Holdco Group's financial instruments that are recognised in the Income Statement because under IAS 23 these do not represent current borrowing costs and so, unlike our other expenditure, cannot be capitalised. A corporation tax charge of £nil was recognised in the period, which reflects the position that the Holdco Group did not have any taxable profits. Cash flow Net cash £m Balance 31/03/16 130.4 (Net) Shareholder Loans 179.7 Equity 127.7 Revenue Other Cash Inflows 14.5 2.4 324.3 Construction of the asset (163.8) • During the period, Tideway received equity and loans from its shareholders totalling £319.2m, and collected £16.9m in revenue. Working capital (12.3) • In September 2016, £11.8m of principal was repaid. Cash outflows (176.1) • Cash outflows of £176.1m includes £163.8m of investment on the construction of the tunnel and working capital outflows of £12.3m. Balance 30/09/16 278.6 17
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