Dee Valley Water sees pretax profit slump

Dee Valley Water’s pretax profits have fallen by 9 per cent as a result of higher operating expenses during the six months to 30 September 2013.

In its interim results published on Tuesday, the water company said the fall in profits were due to a cleaning operation at its Wrexham ring main.

Dee Valley’s revenue in the same period increased by £0.5 million to £12.0 million, which the company said reflected a 4.0 per cent price increase, effective from April 1 2013.

In addition, the company said household, industrial and commercial sector volumes for the six months to 30 September 2013 were “slightly above management expectations”.

The company also benefitted from a reduction in corporation tax rate announced in the March 2013 Budget and has recognised a tax credit of £1.3 million in the period.

Dee Valley supplies approximately 62 million litres per day to more than 258,000 in North East Wales and the North West of England.
It operates eight impounding reservoirs, two river abstractions and two groundwater sources.

Construction activity at its key Llwyn Onn water treatment works is now substantially completed and the water treatment works commenced supplying water on August 12 2013, according to the company.

Dee Valley raised its interim dividend 3.5 per cent to 20.5 pence per share from 19.8 pence a year before.