DEE VALLEY GROUP PLC
The Board of Dee Valley are pleased to announce the completion of a successful refinancing programme which has secured a £30 million revolving credit facility from HSBC Bank plc to fund the 2015-2020 Capital Investment Programme.
Dee Valley Water plc, the Group's operating subsidiary, will be investing up to £50 million in its business, which represents the largest ever capital programme in the Group's history. This necessary investment will focus on the replacement of key assets and maintenance of the Company's asset infrastructure.
The new debt facility replaces the current £9 million facility which was due to mature in March
2016 and has been negotiated on more favourable terms and with an option for a two year extension beyond 2020, which will provide both flexible and cost effective funding.
Securing the new debt facility on favourable terms was important considering the outcome of the Final Determination regarding a considerably lower allowed return on capital of 3.6% (for the period 2010 to 2015: 5.1%).
The Board has also considered Dee Valley's dividend policy during the 2015-2020 period in light of the above factors and the Group's non-regulated business. It is the Board's current intention to maintain a flat annual dividend base of 62.5 pence per share plus a proportion of any financial outperformance, whether from revenue or cost efficiency, which will be assessed by the Board on an annual basis.
The final dividend for the financial year ended 31 March 2015 is expected to be announced on
11 June 2015.
18 May 2015
Dee Valley Group plc Ian Plenderleith - Chief Executive
Tel: 01978 846 946 Andrew Bickerton - Finance Director
Investec Bank plc Jeremy Ellis
Tel: 020 7597 4000 Josh Levy
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