TIDM55GF TIDM84VF 
 
LEI 213800O8BDOGHJMTCP32 
 
                                                       LEI 213800SPVHJCCUH13862 
 
YORKSHIRE WATER ANNOUNCES MEASURES TO IMPROVE ITS FINANCIAL RESOURCES 
 
13 October 2022 
 
Yorkshire Water announces today that it has agreed with Ofwat that intercompany 
loans owed by another Kelda Group company, totalling £941.3 million on 31 March 
2022, will be repaid by March 2027.  It is anticipated that the repayment will 
include capital injections and cash generated in Yorkshire Water that could 
otherwise have been distributed to shareholders via dividends.  A portion of 
this, c.£100 million will be invested during the remainder of AMP7 to reduce 
storm overflow spills. 
 
These two measures combined, will further strengthen the operational resilience 
and financial resources of Yorkshire Water for AMP8.  The investment to reduce 
storm overflow spills will look to achieve a minimum reduction of 20% in 
permitted spills per year by March 2025 from the 2021 baseline. 
 
The intercompany loans were originally made in connection with the acquisition 
of Kelda Group plc in 2008 and are excluded from the calculations of reported 
gearing and interest cover for covenant purposes.  It is anticipated that 
reported regulatory gearing will reduce to no higher than 72% at the end of 
AMP7 and interest cover will improve as these loans are repaid. 
 
Yorkshire Water's shareholders have agreed to support the repayment of the 
intercompany loans and the additional investment to reduce storm overflow 
spills.  This means shareholders will have foregone dividends for nine years 
during AMP6 and AMP7. It demonstrates the shareholders' continuing commitment 
to invest in improved performance at Yorkshire Water, to protect the 
environment and to ensure the financial resilience of the business into the 
future. 
 
Commenting, Yorkshire Water and Kelda Holdings CEO Nicola Shaw said: 
 
"We understand the importance of continuing to have robust financial structures 
in place and believe that the repayment of the intercompany loans will continue 
our resilience into the future in a time of significant external economic 
uncertainty. 
 
"Our shareholders have committed to helping us make this repayment, including 
the additional investment in storm overflows which will have a significant 
impact on our rivers and coastlines here in Yorkshire." 
 
Notes 
 
c£100million investment is after the application of regulatory mechanisms. 
 
For press enquiries, please contact: 
 
Emily Brady, Communications Manager 
 
Email:  emily.brady@yorkshirewater.co.uk 
 
For debt enquiries, please contact: 
 
David Gregg, Head of Corporate Finance 
 
Email:  debtir@keldagroup.com 
 
 
 
END

(END) Dow Jones Newswires

October 13, 2022 06:47 ET (10:47 GMT)

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