Southern Water gives sector biggest payout
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SOUTHERN WATER became the latest water company to fire a shot across the bows of the regulator yesterday, as it announced the biggest interim dividend rise in the sector this year.
Martin Webster, group managing director, warned that the company would appeal to the Monopolies and Mergers Commission if it felt the return to shareholders allowed by Ofwat was too low.
He was critical of the methodology used by the regulator, Ian Byatt, in his recent paper setting out guidelines for the periodic review of water charges, which will set 'K' factors to the end of the century. K is the percentage beyond the retail price index by which companies are allowed to increase bills.
Shares in Southern rose 12p to 660p as it pushed its interim payout ahead 8.5 per cent to 7.7p. Pre-tax profits were 7.5 per cent higher at pounds 64.5m in the six months to the end of September. Non-regulated businesses performed well, contributing 7.3 per cent of trading profits. Ray King, finance director, said that adding interest gains, the non-core side made 9 per cent of profits.
He said there was more than pounds 30m cash in the bank at the half- way mark, although that would fall to single figures by the year end as the company continued its capital investment programme.
Southern also announced that it was buying 75 per cent of Greater Manchester Scientific Services for less than pounds 1m. It said the stake would enhance its existing environmental consultancy business.
Bottom Line, page 29
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments