Thames plans pounds 240m buy-back
Wednesday 05 June 1996
Yorkshire Water is widely expected to follow Thames' lead by announcing similar plans today even though it has been roundly criticised by the industry regulator for under-investing in services.
Thames' chairman, Sir Robert Clarke, said powers to buy back up to 10 per cent of its shares "at an appropriate time" would be sought at the company's annual meeting on 30 July. A 10 per cent share buyback would cost Thames pounds 240m at its market capitalisation.
Thames does not look likely, however, to join the rush to become a multi- utility. Sir Robert appeared to rule out a merger with London Electricity. But he said that discussions with the company on a series of bilateral co-operation agreement were progressing well.
He was speaking as Thames announced a 25 per cent drop in pre-tax profits after taking a pounds 95m charge to withdraw from a number of overseas contracting businesses. The disastrous foray cost the chief executive, Michael Hoffman, his job and resulted in the international division making an operating loss of pounds 41m on sales of pounds 92m in 1995.
Thames has closed its US waste contracting business, Waste Solutions, and has put Utag in Germany and its UK contracting subsidiary, PWT, up for sale. The businesses being disposed of lost pounds 31m last year mainly due to a poor performance in Germany and losses on a Hong Kong contract.
Exluding exceptional items, profits were 6 per cent higher at pounds 324m and the dividend for the year was lifted 12 per cent to 28.3p. Despite the planned buy-back the shares fell 11.5p to 579p.
Thames joins a steady stream of water companies increasing dividends strongly as they turn in annual results, led by United Utilities which hiked its payout 28 per cent including a special 3.8p dividend last week.
- 1 What happens to your body when you give up sugar?
- 2 Ed Miliband less influential than One Direction's Louis Tomlinson by official Doncaster power list
- 3 Japanese island overrun with cats after population explodes
- 4 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
California teacher appears to have hanged herself in her classroom
The City of the Monkey God: Archaeologists claim to have found city lost for 1,000 years in remote Honduran jungle
Ed Miliband less influential than One Direction's Louis Tomlinson by official Doncaster power list
Japanese island overrun with cats after population explodes
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
iJobs Money & Business
£15000 - £18000 per annum: Recruitment Genius: This is a great opportunity for...
£50000 - £60000 per annum + Excellent Salary: Austen Lloyd: An outstanding new...
£20000 - £21000 per annum + uncapped commission: SThree: As a graduate you are...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...