Kelda Group plc announces wide-ranging strategic review
11/04/2000
Kelda Group plc today (Tuesday, April 11) announces a wide-ranging review of its strategy and group structure. The review will address:
The benefits of separation, subject to regulatory approvals, of the ownership and operation of Yorkshire Water Services Ltd's assets.
The role of the non-water diversified businesses. Aquarion Company remains an important platform for US growth.
Returning to shareholders excess capital realised from the implementation of these strategic initiatives.
The development of Kelda as a provider of operating services to the water industry and developing business to business services generally.
In order to manage the review process, John Napier, the newly-appointed Chairman of Kelda, will act as Executive Chairman with specific responsibilities for conducting the review and implementing its recommendations.
Kevin Bond, Chief Executive, has resigned by mutual consent. The Board recognises the contribution made by Kevin Bond to the Group over the last four years in improving the Groups' credibility and service reputation with customers.
John Napier, Executive Chairman, said: "Through this review, the Board is seeking to address the challenge of balancing declining shareholder returns following the most recent price determination with the need to increase capital expenditure at the lowest cost while simultaneously creating value for shareholders. Expectations of the Group's performance remain positive and unchanged."
For further information contact:
James Newman, Group Finance Director, on 0113 2312704
