NW water cuts to consolidate
Page 25
If you've noticed an error in this article please click here to report it so we can fix it.
II North West Water has shelved plans to expand into the vehicle servicing and maintenance business, as its chairman Dennis Grove announces sweeping changes to cut costs. Its financial results published last week revealed pre-tax profits of 275 million which were below the City's expectations and triggered a run on shares.
Grove plans to take the axe to costs which have soared 18 per cent in the year since it moved from the public to private sectors. It is setting aside £11m for restructuring and does not rule out redundancies and rationalisation.
NWW's transport manager John Ashmore says there is to be a gradual diversification into external vehicle maintenance and servicing work and it has tendered for local authority contracts. "But the change in company strategy means we have to consolidate our position and concentrate on in-house activities.
"Share prices show the City does not favour water companies which have diversified."