Water firm shrugs off takeover speculation

29/11/2007

NORTHUMBRIAN Water yesterday shrugged off mounting takeover speculation and revealed a "strong" set of financial results.

The company, which serves 4.3 million people in the North- East and through its operation in Essex, announced a 5.7 per cent increase in revenues for the half-year to £333.8m, and said pre-tax profits had risen 16.6 per cent to £88m.

Speculation over the future ownership of the group has been mounting after this week's sale of Yorkshire Water owner Kelda to a consortium led by Citigroup and HSBC.

Northumbrian is being tipped as the next company to be privatised by an infrastructure fund.

But managing director John Cuthbert said: "We have not had an approach. If we had, we would have had to make an announcement."

The biggest stakeholder in the company - Ontario Teachers pension fund - has held a 26 per cent stake in Northumbrian Water since April 2005, the group said.

Announcing its results to the Stock Exchange, Northumbrian also said its £32m green power site at Bran Sands, on Teesside, was progressing well.

The site will see the construction of the UK's first plant to generate power from sludge.

Earlier this year, the group said it would not be increasing prices above inflation for the next two years, meaning its customers will have the lowest bills in the country by 2010.

Mr Cuthbert said: "The company's operating and financial performance remains strong.

"We will continue to focus on managing energy costs and take positive steps to reduce the environmental impact of our business."

The Northern Echo - www.thenorthernecho.co.uk