2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Dee Valley Group Plc
The Dee Valley Group supplies water to Wrexham and parts of Clwyd in North Wales and Chester and
parts of Cheshire in North West England, with sewerage services being provided by Dŵr Cymru (Glas
Cymru) and North West Water (United Utilities Plc). Dee Valley Group was formed from the merger of
the Wrexham Water and Chester Waterworks companies in 1994. 41% of the company’s shares are
held by AXA and the BFS Small Companies Dividend Trust, two institutional investors. Distribution
losses in 1999/00 were 12.5Ml/day against Ofwat’s target of 11.8Ml/day and the company reduced this
to 10.0 Ml/day in 2003-04, against its target of 10.9Ml/day by 2004/05.
The company diversified into gas supply (North Wales Energy) and pipeline maintenance (DVS
Pipelines) along with an alliance with Norweb (United Utilities Plc) for marketing electricity distribution
within the Dee Valley franchise area. In 2001, the company sold its energy businesses to Scottish and
Southern Energy plc. The pipeline activities not directly connected with Dee Valley’s operations were
sold in 2002 and Dee Valley now concentrates on water supply services.
Following a £32 million refinancing in 2003, the B shares have been redeemed.
Dee Valley Group Plc, profit and loss account
Y/E 31/03 (£ million) 2001 2002 2003 2004 2005
Water turnover 16.41 16.57 16.47 16.66 16.84
Other turnover 11.83 10.88 1.90 0.00 0.00
Group turnover 28.24 27.45 18.37 16.66 16.84
Operating profit 6.52 6.67 5.41 6.47 6.82
Pre-tax profit 1.69 2.22 3.06 4.33 4.62
Earnings per share (p) 12.2 48.0 79.7 66.5 68.7
Contact Details
Name: Dee Valley Group Plc
Address: Packsaddle, Wrexham Road,
Rhostyllen, Wrexham, Clwyd, LL14 4EH, UK
Tel: +44 1978 833 200
Fax: +44 1978 846 888
Web: www.deevalleygroup.com
Graham Scott (Chairman)
Bryn Bellis (MD)
David J Guest (Finance Director)
342 Pinsent Masons Water Yearbook 2005 – 2006