2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
East Surrey Holdings Plc
East Surrey Holdings Plc supplies water to Croydon, Sutton, East Surrey and parts of Kent and
Sussex in South East England, with sewerage services being provided by Thames Water Plc. The
company is the holding company for Sutton and East Surrey Water Plc, which was formed in 1996
through the merger of Sutton District Water Ltd and East Surrey Water Ltd.
The company dates from 1862, when the Caterham Spring Water Company was founded. Caterham
merged with Kenley Water Co. to form East Surrey Water in 1885. Sutton & Cheam Water Co was
founded in 1863 and was taken over by Sutton District Water in 1871. East Surrey merged with
Leatherhead & District Water in 1927, the Chelsham and Warlingham Water Company, the Limpsfield
and Oxted Water Company in 1930 and the Dorking Water Co in 1959.
East Surrey Holding Plc, profit and loss account
Y/E 31/03 (£ million) 2001 2002 2003 2004 2005
Water provision 34.8 36.6 37.2 38.0 38.6
Other activities 10.5 10.0 9.4 35.1 70.3
Group turnover 44.6 46.6 46.5 73.1 108.9
Operating profit 10.5 12.7 13.0 14.9 21.7
Pre-tax profit 14.9 17.3 15.2 9.2 12.0
Earnings per share (p) 21.5 28.1 29.5 11.8 13.1
Population served (000) 637 640 642 645 650
Measured water supplies 9.3 10.3 10.8 11.8 16.3
Total leakage (Ml/day) 24.4 24.2 24.0 24.0 N/A
Turnover for water supplies in 2003-04 was £26.04 million for unmeasured supplies and £11.79 million
for measured supplies. Measured supplies increased by £0.85 million over 2002-03, against a decline
of £0.19 million for unmeasured supplies.
Non-regulated activities include plumbing services, assurance and materials recovered from water
treatment operations. Classic Water (mineral water) was sold in 2003 for a profit of £2.4 million. In
2005, there were 252,000 domestic customers and 18,000 commercial customers. 12,900 domestic
properties were connected to water meters between 1998 and 2001, but the take-up since then has
been weak. Leakage (including customer leaks) fell from 16.4% in 1998/99 to 15.8%, one of the
lowest UK figures.
In December 2003, the company purchased 75.5% of Phoenix Gas, a company providing gas to
68,500 customers in Northern Ireland for £180 million. Phoenix generated revenues of £58.2 million in
2004-05.
In April 2004, Kellen Acquisitions Ltd, a subsidiary of Terra Firma made an offer to acquire the
company. This was accepted by the Board in May 2005. While the Office of Fair Trade decided not to
refer the offer, the Northern Ireland Authority for Energy Regulation subsequently decided to impose
tariff reductions on Phoenix Gas. Kellen Acquisitions in consequence sought to have the offer
declared lapsed in August 2005, but in October 2005, the Takeover Panel ruled that the bid will have
to go ahead.
Contact Details
Name: East Surrey Holdings Plc
Address: London Road, Redhill,
Surrey, RH1 1LJ, UK
Tel: +44 1737 772 000
Fax: +44 1737 766 807
Web: www.waterplc.com
Web: www.eastsurreyholdings.com
Patrick Barrett (Chairman)
Philip Holder (MD)
Nicholas Fisher (Finance Director)
343 Pinsent Masons Water Yearbook 2005 – 2006