Interim results for the six months to 30 September 2004

07/12/2004

Northumbrian Water Group plc is pleased to announce its interim results for the six months to 30 September 2004.

Highlights

Turnover of £286.5 million for the six month period to 30 September 2004 (2003 pro forma: £261.4 million), principally reflecting the successful application to Ofwat for an interim increase of price limits at the Group’s water and sewerage company, Northumbrian Water Limited (NWL).
Profit before tax of £49.4 million (2003 pro forma before exceptionals: £31.5 million)
Interim dividend of 2.87 pence per share for the six month trading period.
NWL’s finance subsidiary will today issue a £100 million increase to its 5.625% Eurobond 2033.
Continuing high levels of drinking water quality, customer service and environmental protection.
Ofwat final determination sets NWL’s price limits for 2005 to 2010 at 15% before inflation, an increase on the draft determination which was 7.8%.
Financial position further strengthened.

John Cuthbert, Managing Director, said today: “In 2004 we have continued to build on the excellent start we made in 2003 following admission to the Official List of the London Stock Exchange.  We have made significant progress in our operating performance, in securing our financial position and in improving our services to customers and our protection of the environment, as well as delivering value to shareholders.

“At the end of last week we received Ofwat’s final determination of our price limits for the next five years.  The regulator has addressed a number of points we raised during the consultation period and has taken ministerial guidance and the views of customers and WaterVoice into account.  Although we are still analysing the details, it appears a more acceptable determination than the draft Ofwat announced earlier this year.”