AWG receives offers for overseas arm
Shares in AWG, the owner of Anglian Water, rose sharply yesterday after the group disclosed it had received offers worth more than £200m for its international business and announced better than expected interim results.
Analysts were pleased both by the progress on the sale of the international arm and the company's strong cash flow performance, and the shares gained 13 per cent to close at 399p yesterday.
Announcing a 17 per cent decline in pre-tax profits before exceptional items to £54.8m for the six months to the end of September, AWG's chief executive Chris Mellor reiterated the group's commitment to maintain the dividend in real terms until 2005. The bottom-line figures were scarred by a £103m exceptional charge, mainly to cover the cost of the group's capital restructuring and this resulted in a £55.3m loss for the period. The restructuring was completed last month after AWG loaded its balance sheet with debt and paid back £500m to shareholders.
The result will be higher interest charges in future but lower dividend payments. The new financial structure will save the group £40m-£45m a year. Total fees associated with the restructuring were £128m.
AWG's international division consists mainly of water businesses in Chile and the Czech Republic although it also has operations in China, Ireland and Thailand. It contributed a profit of £6.5m in the first six months.
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