DEE VALLEY GROUP PLC Interim report for the six months ended 30 September 2015
Your local water company
Dee Valley Group plc
Dee Valley Group plc, through its trading subsidiary Dee Valley
Water plc, supplies drinking water to 266,000 domestic and business customers in North East Wales and the North West of England.
Operational Highlights
Improvement in our qualitative
SIM score
3rdin the sector (31 March 2015: 8th)
(one seventh)
of our network cleaned since 1 April 2015
year-on-year
reduction in discolouration contacts
Financial Highlights
Revenue (£000)
Interim dividend (pence per ordinary share)
20.5 20.5
Improvement in our Mean Zonal
Compliance to
99.95%(31 December 2014:
99.88%)
Contents
Industry leading Developer Services function, with
100%performance
Lowestleakage in the sector
(77.2 litres per property per day at 30 September
2015)
2015
2014
2015
12,434 |
11,520 |
2014
Statement of Directors' Responsibilities 4
Profit from operations
Earnings per share (pence per ordinary share)
Interim Management Report 5
Introduction 6
Financial Review 10
Financial Statements
Condensed Group Income Statement 14
Condensed Group Statement of Comprehensive Income 14
6,288 |
5,485 |
2015
2014
40.2 | 38.8 |
2015
2014
Condensed Group Balance Sheet 15
Profit before tax (£000)
2,345 2,426
Note: all financial and operational highlights
Condensed Group Consolidated Statement of Changes In Equity
for the six months ended 30 September 2015 16
Condensed Group Consolidated Statement of Changes In Equity
for the year ended 31 March 2015 17
Condensed Group Cash Flow Statement 18
Notes to the Condensed Financial Statements 19
2015
2014
on these pages are unaudited.
2 Dee Valley Group PLC Interim Report 30 September 2015
Your Local Water Company
Interim Report 30 September 2015 3
The interim report for the six months ended 30 September 2015 is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the interim report in accordance with the Disclosure and Transparency Rules of the United Kingdom's Financial Conduct Authority.
Responsibility Statement
We confirm that to the best of our knowledge:
the condensed set of financial statements has been prepared in accordance with IAS34 'Interim Financial Reporting';
the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months
and description of principal risks and uncertainties for the remaining six months of the year); and
the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein).
The directors of Dee Valley Group plc at the date of this announcement are listed below:
Jon Schofield - Chairman
Ian Plenderleith - Chief Executive Andrew Bickerton - Finance Director
Phil Holder - Senior Non-Executive Director Kevin Starling - Non-Executive Director
This responsibility statement was approved by the Board and signed on its behalf by:
Ian Plenderleith Andrew Bickerton
Chief Executive Finance Director
Cautionary statement
This Interim Management Report (IMR) has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed. The IMR should not be relied on by any other party or for any other purpose.
The IMR contains certain forward-looking statements. These statements are made by the directors in good faith based on the information available to them up to the time of their approval of this report but such statements should be treated with caution due to the inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information.
By order of the Board
Andrew Bickerton Finance Director
4 Dee Valley Group PLC Interim Report 30 September 2015
Your Local Water Company
Interim Report 30 September 2015 5
Introduction
The six month period ended
30 September 2015 is the first reporting date in Asset Management Plan 6 ('AMP6'), the five year period ending March 2020 which is underpinned by Ofwat's Final Determination on price limits.
The Final Determination outcome for Dee Valley Water plc ('the Company'),
the trading subsidiary of Dee Valley Group plc ('the Group'), presents a significant challenge, with a reduction in average bills for both household and non-household customers against the backdrop of the largest ever capital programme in the Company's history.
In comparison to the previous financial
31.6%Projected RCV growth during AMP6, the highest in the sector
A detailed review of our AMP6 investment plans has been conducted following the Final Determination to re-evaluate customer and stakeholder benefits and to identify opportunities to outperform our allowances. Specifically, we have initiated a more innovative and cost effective solution
to the replacement of the Legacy Water Treatment Works which is our largest individual capital project in AMP6;
A Head of Customer Service has been recruited to initiate a change programme to improve the overall customer experience. Investment in customer service technology has also been made to allow better analysis of, and response to, customer contacts;
Our online interface with customers and other stakeholders has been reviewed and the Company is developing a vastly improved online offering and website to enhance our customer service provision and communications;
Project Connect was launched during
Operational performance
& key performance indicators
The Company has delivered strong operational performance during the first six months of the year and is ahead of
expectations regarding the key performance indicators agreed with Ofwat.
Customer service
At 30 September 2015 our qualitative Service Incentive Mechanism ('SIM') score had improved and the Company is therefore now upper quartile, ranked 3rd in the sector (31 March 2015: 8th). This significant improvement is aligned to the investment which has been made in our customer offering and we remain committed to continually improving our
customers' experience when engaging with the Company.
On 1 September 2015 the Company successfully launched a new customer satisfaction feedback tool, 'Rant and Rave', to provide a better and more timely
year, average bills for household and non-
household customers combined have fallen by 4.5% (including inflation), resulting in a corresponding year-on-year revenue reduction. However, cost management initiatives as detailed below have resulted in a satisfactory profit performance during the period.
Our capital programme is forecast to deliver Regulated Capital Value ('RCV') growth of 31.6% in real terms over the AMP, which represents the highest growth across the sector (sector average: 8.6%).
The Final Determination also includes thirteen challenging but achievable Performance Commitments which underpin our promise to our customers to provide high quality drinking water and first class customer service.
In order to meet these commitments the Company has laid the foundations to allow improvements in operational performance, including making the necessary investment and business change. This investment
and business change has resulted in the following developments during the reporting period:
There have been significant changes in key management personnel and organisational arrangements. These organisational changes have created
opportunities to improve the efficiency and effectiveness of our operational and managerial processes, including information reporting and cost control;
the period to deliver standardised back office business processes, supported by a new Finance, Human Resources and Procurement system to better analyse performance and provide more robust, automated management information. The new system will be live in 2016;
A clear Vision and Values charter has been established for the organisation; and
A formal Internal Audit and Assurance department has been established along with the development of a robust data governance and reporting process which is being rolled out across the business.
Our investment underpins the strategic plans and commitments of the Company for the AMP6 period.
understanding of our customers' experience
when contacting the Company. Following the launch, 80% of customers scored the Company 5 out of 5 for customer satisfaction with a running average of 4.7 out of 5.
The Company continues to offer a variety of payment methods to customers, with a
focus on vulnerable customers who struggle to pay their bills. Recovery of customer debt remains a key focus for Management and the Company offers an industry leading vulnerable customer strategy, including the following measures:
Offering flexible payment plans on both a weekly and monthly cycle;
Providing a 'Watersure' tariff to support vulnerable customers in our area;
Customer liaison visits to support customers in the community and assist with debt management.
6 Dee Valley Group PLC Interim Report 30 September 2015
Your Local Water Company
Interim Report 30 September 2015 7
|
distributed by
|
