2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
Kelda Group Plc (Yorkshire Water Plc)
Yorkshire Water Plc (YW) was renamed Kelda Group Plc in August 1999. An aggressive approach
towards resources management was unravelled by the ‘once in every 500 years’ drought conditions
seen in 1995. In consequence, £300 million was spent between 1996 and 1999 on developing a water
grid. Distribution losses fell by more than 40% between 1995 and 2001, and were at Ofwat’s target of
295Ml per day in 2003-04. Yorkshire Water has been unaffected by the water shortages during the
summer of 2005, with reservoirs at 93% of capacity.
Kelda Group, profit and loss account
Y/E 31/03 (£ million) 2001 2002 2003 2004 2005
Turnover
Yorkshire Water 542.1 559.8 567.0 604.4 640.1
UK water services N/A N/A 16.9 30.7 59.3
Aquarion 77.7 70.5 93.7 94.1 92.2
Operating profit
Yorkshire Water 214.8 225.5 233.7 252.5 284.6
UK water services N/A N/A 2.4 2.0 6.4
Aquarion 27.1 26.3 34.9 31.6 30.3
Group Turnover 774.6 799.8 838.1 822.6 806.2
Operating profit 238.9 265.3 277.1 292.2 310.2
Net interest -98.4 -102.8 -108.9 -100.6 -98.2
Exceptional items 15.9 34.4 -10.9 14.6 -11.7
Pre-tax profit 156.4 197.1 164.3 191.6 212.0
Earnings per Share (p) 31.6 39.2 32.7 47.1 53.2
Dividends per Share (p) 24.8 25.5 26.1 26.8 29.0
Kelda Group, number of people served in the UK and internationally
Water Sewerage Total
Yorkshire Water Services 4,451,000 4,843,000 4,843,000
York Waterworks 174,000 0 174,000*
Scotland – PFI 0 450,000 450,000
Northern Ireland 700,000 0 700,000
USA 677,000 0 677,000
Total 6,002,000 5,293,000 6,670,000
* Included in Yorkshire Water Services sewerage coverage
UK – Acquisition of York Waterworks Plc
York Waterworks was the smallest of the listed former SWCs when it was acquired for £27.9 million in
March 1999 and was cleared in June 1999. The acquisition involves existing customers of York
Waterworks receiving extra price cuts of 15% by 2004, as well as enhanced metering and leak
reduction services. York Gas was sold in 1999. York Waterworks generated a 1999/00 turnover of
£9.6 million. The company was subsumed within Yorkshire Water Services in 2000.
UK – PFI in Scotland
2000 Aberdeen 25 year PFI BOT 450,000 sewage treatment
In May 2000, Aberdeen Environmental Services Ltd., a Kelda-led consortium (45% Kelda Group, the
rest held by Balfour Beatty and Tyco’s Earth Tech) gained the contract with the North of Scotland
Water Authority for an £80 million PFI sewage treatment works project serving Aberdeen, Stonehaven,
Peterhead and Fraserburgh. Kelda’s Grampian Waste Water Services Ltd, is operating the facility until
2031 and generated revenues of £10.7 million in 2004-05.
347 Pinsent Masons Water Yearbook 2005 – 2006