2005 - 2006 - Pinsent Masons Water Yearbook 2012

UNITED KINGDOM PART 3 (ii): COMPANY ANALYSIS: LOCAL/REGIONAL PLAYERS
South Downs Ltd/Portsmouth Water
South Downs Ltd owns Portsmouth Water Plc. Portsmouth Water supplies water to 665,000 people
via 294,000 connections in Portsmouth and parts of the Hampshire and West Sussex coast, with
sewerage services being provided by Southern Water (First Aqua). Portsmouth Water started
operations in 1857, building upon supply entities dating back to an Act of Parliament in 1740. The
company merged with the Gosport Water Company in 1955 and acquired further entities serving
Bognor Regis and Chichester in 1963.
Portsmouth Water Plc, profit and loss account
Y/E 31/03 (£ million) 2002 2003 2004 2005
Turnover 29.67 29.55 30.70 31.27
Operating profit 10.68 10.08 10.14 10.42
Pre-tax profit 8.90 9.53 7.84 8.74
Net profit 6.32 6.91 5.56 6.04
A bulk supply contract has been agreed with Southern Water, which will come into effect in 2003-04.
This contract will provide Southern Water with up to 15 million litres of water per day during periods of
prolonged drought. A £1 million lead reduction programme is upgrading four extant treatment plants,
installing seven new treatment plants and dosing water to minimise its plumbsolvency. Full compliance
with the proposed 10mg/L standard for lead in drinking water was attained in 2003. Leakage has fallen
by 40% between 1990 and 2005 to 29.9 Ml/day.
Until December 2001, Portsmouth Water Plc was owned by Brockhampton Holdings Plc, a listed
company. In October 2001, a £71 million management buyout by South Downs Ltd was announced.
At the outset, South Downs Ltd was 15% held by Brockhampton Holdings’ management, 40% by the
South Downs Employee Benefit Trust and 40% by Drummond Capital, part of the Royal Bank of
Scotland Group (RBS). In March 2002, RBS sold 31% of the company to Abbey National Treasury
Services Plc. In February 2005, Abbey National Treasury Services Plc sold 36% of South Downs to
the Secondary Market Infrastructure Fund UK LP. A £66 million AAA rated bond issue was completed
in June 2002, reducing the cost of financing to 3.635%.
Contact Details
Name: Portsmouth Water Ltd,
Address: P.O. Box 8, West Street, Havant,
Hampshire, PO9 1LG
Tel: +44 23 9249 9888
Fax: +44 23 9245 3632
Web: www.portsmouthwater.co.uk
Terrence Lazenby (Chairman)
Nicholas John Roadnight (MD)
Neville Smith (Finance Director)
357 Pinsent Masons Water Yearbook 2005 – 2006