News Column

Dee Valley Profit Up On Pension Scheme Curtailment; Holds Dividend

June 11, 2014

Anthony Tshibangu

LONDON (Alliance News) - Dee Valley Group PLC Wednesday reported an increase in profit and revenue for the full year, as it adopted what it called a more "sustainable" pension policy.

The company, which operates through Dee Valley Water PLC, posted pretax profit of GBP5.1 million for the year ended March 31, up from GBP4.0 million a year earlier, as revenue rose to GBP23.8 million from GBP22.8 million a year ago.

Dee Valley, which serves north east Wales and west Cheshire, said profit was GBP1.8 million higher than the previous year as it curtailed its pension scheme.

The group has sought to adopt a more "sustainable approach" to the delivery of pension provision and during the year it proposed changes to its defined benefit pension scheme. The proposed changes were designed to reduce both the costs and risks presented by the scheme.

The changes were implemented with effect from December 1, 2013 and resulted in a pension scheme curtailment gain of GBP1.3 million.

Dee Valley said revenue increased following a 4.0% price increase in domestic and non-domestic water bills, as well as an increase in consumption.

Operationally, the firm said the volume of water lost as a result of leakage during the year was 10.15 million litres per day, up from 9.28 million litres per day a year earlier. Dee Valley said although leakage was higher than the previous year it remained below UK water industry regulator Ofwat's target of 10.22 million litres per day.

Looking ahead, the firm said it expects the next 12 months to be challenging with the outcome of Ofwat's price control process for 2015-2020 being crucial to future investment.

Despite its performance. Dee Valley reduced its final dividend to 42.0 pence from 42.7 pence, making a total dividend of 62.5 pence unchanged from a year earlier.

Dee Valley Group shares were off 0.6% at 1,550.00 pence Wednesday morning.

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Source: Alliance News

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