Transactions between the company and its subsidiaries, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
The related party transactions with the group's joint ventures and other related parties during the period, and amounts outstanding at the period end date, were as follows:
|Sales of services||438.3||455.8|
|Charitable contributions advanced to related parties||0.4||0.5|
|Purchases of goods and services||0.1||0.1|
|Costs recharged at nil margin under transitional service agreements||–||0.2|
|Interest income and fees recognised on loans to related parties||4.0||4.3|
|Amounts owed by related parties||147.9||182.9|
|Amounts owed to related parties||4.8||0.6|
Sales of services to related parties during the year mainly represent non-household wholesale charges to Water Plus that were billed during the period. These transactions were on the market credit terms in respect of non-household wholesale charges, which are governed by the wholesale charging rules issued by Ofwat.
Charitable contributions advanced to related parties during the year relate to amounts paid to Rivington Heritage Trust, a charitable company limited by guarantee for which United Utilities Water Limited is one of three guarantors.
At 31 March 2020, amounts owed by joint ventures, as recorded within trade and other receivables in the statement of financial position, were £147.9 million (2019: £182.9 million), comprising £52.9 million (2019: £39.4 million) of trade balances, which are unsecured and will be settled in accordance with normal credit terms, and £95.0 million (2019: £143.5 million) relating to loans.
Included within these loans receivable were the following amounts owed by Water Plus:
- £93.6 million (2019: £100.0 million) outstanding on a £100.0 million revolving credit facility provided by United Utilities Water Limited, which is guaranteed by United Utilities PLC, with a maturity date of 30 September 2021 (2019: maturity date of 30 September 2020), bearing a floating interest rate of LIBOR plus a credit margin. This balance comprises £98.0 million outstanding net of a £5.0 million allowance for expected credit losses (2019: £nil allowance for expected credit losses) recognised in the income statement during the year;
- £nil (2019: £9.6 million) receivable being the £10.0 million (2019: £9.6 million) fair value of amounts owed in relation to a £12.5 million unsecured loan note held by United Utilities PLC, with a maturity date of 28 March 2027, net of a £0.5 million (2019: £nil) allowance for expected credit losses recognised in the income statement during the year, and £9.5 million (2019: £nil) of the group's recognised share of joint venture losses as the loan is deemed to be part of the group's long-term interest in Water Plus. This is a zero coupon shareholder loan with a total amount outstanding at 31 March 2020 of £12.5 million, comprising the £10.0 million (2019: £9.6 million) receivable measured at fair value, and £2.5 million (2019: 2.9 million) recorded as an equity contribution to Water Plus recognised within interests in joint ventures; and
- £nil (2019: £32.5 million) outstanding on a £32.5 million revolving credit facility provided by United Utilities PLC, with a maturity date of 30 September 2021 (2019: maturity date of 30 September 2020), bearing a floating interest rate of LIBOR plus a credit margin.
A further £1.4 million of non-current receivables (2019: £1.4 million) was owed by other related parties at 31 March 2020.
The allowances for expected credit losses of £4.5 million and £0.5 million, recognised against the revolving credit facilities and zero coupon shareholder loan note respectively, together with the £9.5 million share of joint venture losses recognised against the zero coupon shareholder loan note, result from the impacts of the COVID-19 pandemic, which has resulted in Water Plus recognising significant losses during the year and has caused a significant increase in credit risk. No allowances for expected credit losses or share of joint venture losses were recognised against any of these balances in the prior year.
During the year, United Utilities PLC provided guarantees in support of Water Plus in respect of certain amounts owed to wholesalers. The aggregate limit of these guarantees was £54.1 million (2019: £58.1 million), of which £32.1 million (2019: £35.1 million) related to guarantees to United Utilities Water Limited.
At 31 March 2020, amounts owed to related parties were £4.8 million (2019: £0.6 million). Included within this amount is £4.5 million due to Water Plus for the surrender of consortium relief tax losses for the year ended 31 March 2020. The amounts outstanding are unsecured and will be settled in accordance with normal credit terms.
Details of transactions with key management are disclosed in note 3.
The parent company receives dividend income and pays and receives interest to and from subsidiary undertakings in the normal course of business. Total dividend income received during the year amounted to £284.5 million (2019: £274.5 million) and total net interest payable during the year was £32.9 million (2019: £30.5 million). Amounts outstanding at 31 March 2020 and 31 March 2019 between the parent company and subsidiary undertakings are disclosed in note 15, 17 and 22.
At 31 March 2020 and 31 March 2019, no related party receivables and payables were secured and no guarantees were issued in respect thereof. Balances will be settled in accordance with normal credit terms. No allowance for doubtful receivables has been made for amounts owed by subsidiary undertakings as at 31 March 2020 and 31 March 2019.