UK: a lacklustre results season
- From: Vol 2, Issue 7 (July 2001)
- Category: General
- Region: Europe
- Country: United Kingdom
- Related Companies: AWG, Bristol Water Holdings, Glas Cymru, Kelda, Lehman Brothers, Morrison Construction, Pennon/South West Water, Severn Trent Water, South Staffordshire Group, Sutton & East Surrey Water, United Utilities, Welsh Water (Dwr Cymru) and Yorkshire Water
The privatised UK water companies reporting full year results over the past four weeks have all seen their profits hit by Ofwat price controls, which took effect from April 2000. The last periodic price review cut bills on average by 12.5% and left companies struggling to make their businesses more attractive to the capital and equity markets.
A number of the companies have explored restructuring options to re-finance their business and ensure funding is in place to meet the industry’s massive CAPEX programme. The successful financing by Glas Cymru in its purchase of Welsh Water showed that the markets are willing to invest. Sutton & East Surrey also re-financed with a £100 million credit wrapped index linked ...
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