Yorkshire postpones buy-back

Beleaguered Yorkshire Water came under fire yesterday from customers and the Labour Party for a substantial increase in profits and dividends last year.

But the company bowed to public outrage about its poor performance during the drought by postponing a planned share buy-back until it has improved its relationship with customers.

The buy-back would have added substantially to the rewards for shareholders, but Yorkshire took the sting out of the postponement by promising the City handsome future increases in real dividends of between 6 per cent and 8 per cent each year - on top of inflation - to the year 2000.

This followed a decision to raise the latest year's dividend 12 per cent to 31p a share after an increase in pre-tax profits of 14 per cent to pounds 162.2m. The profit came after extra drought costs of pounds 47m. Labour called the profits scandalous. Frank Dobson, the shadow environment secretary, said: "Under this Government, the privatised companies are allowed to get away with anything - rip off customers, leak one-third of their water, damage the environment - yet they're not properly regulated and they pay next to no tax.

"Labour will introduce tough regulations to cut the leaks, protect customers and sustain the environment, and we will also impose a windfall levy on the scandalous profits to help finance our plans to provide work and training for young people."

Commenting on the postponed share buy-back, Brian Wilson, Yorkshire's finance director, said: "We believe the balance sheet is inefficient ... but we must regain the confidence of customers first."

With takeover rumours in the air, he held out the prospect to the City that a share buy-back was still possible later this year. He said he would be "disappointed if (customer confidence) is not restored within this calendar year."

The absence of a buy-back depressed the share price, which fell 16p to 718p.

Mr Wilson admitted that Yorkshire had made mistakes but said the priority now was "to get the core water business firing on all six cylinders and customer confidence back."

He defended the dividend growth promise, saying the company would invest more than pounds 600m over the next two years, which he claimed was five times as much as projected dividend increases.

Mr Wilson said the company had seen "a balanced year" between benefits for customers and shareholders. In retribution for its poor customer service, Ofwat, the water regulator, has made Yorkshire cap price increases at inflation instead of the previously allowed increases of 2.5 percentage points above inflation.

Yorkshire had to pay for tankers to import water from neighbouring areas during the supply shortage, contributing to the exceptional costs of pounds 47.2m.

The company expressed confidence that action taken to secure supplies would prevent a repeat of last year's problems and avoid any further exceptional charges.

Arts and Entertainment
Gregg Wallace in Summer's Supermarket Secrets
tv All of this year's 15 contestants have now been named
Sport
The giant banner displayed by Legia Warsaw supporters last night
football Polish side was ejected from Champions League
Arts and Entertainment
Could we see Iain back in the Bake Off tent next week?
tv Contestant teased Newsnight viewers on potential reappearance
Life and Style
A picture taken on January 12, 2011 shows sex shops at the Paris district of Pigalle.
news
PROMOTED VIDEO
News
i100(and it's got nothing to do with the Great British Bake Off)
News
Angelina Jolie with her father Jon Voight
peopleAsked whether he was upset not to be invited, he responded by saying he was busy with the Emmy Awards
News
Bill Kerr has died aged 92
peopleBill Kerr appeared in Hancock’s Half Hour and later worked alongside Spike Milligan and Peter Sellers
News
news It's not just the world that's a mess at the moment...
Sport
footballPremiership preview: All the talking points ahead of this weekend's matches
News
Keira Knightley poses topless for a special September The Photographer's issue of Interview Magazine, out now
people
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Voices
The Ukip leader has consistently refused to be drawn on where he would mount an attempt to secure a parliamentary seat
voicesNigel Farage: Those who predicted we would lose momentum heading into the 2015 election are going to have to think again
Arts and Entertainment
Cara Delevingne made her acting debut in Anna Karenina in 2012
film Cara Delevingne 'in talks' to star in Zoolander sequel
News
i100
Sport
Mario Balotelli pictured in his Liverpool shirt for the first time
football
Life and Style
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Data Scientist (SQL,Data mining, data modelling, PHD, AI)

£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...

SAS Business Analyst - Credit Risk - Retail Banking

£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...

Project Manager - Pensions

£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...

KYC Analyst, Birmingham - £200-£250 p/d

£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone