Financial analysis

Preliminary results for the year ended 31 March 2007

• Total regulated capital investment for the year of £225 million; cumulative investment of £436.9 million over last 2 years, on track to invest £1 billion by 2010
• Customers to benefit from price changes from April 2007 to March 2010: decision taken by NWL not to increase prices by the full amount allowed by Ofwat at the last price review
• Continuing high levels of customer service and satisfaction
• Financial position strengthened by the issue of two £100 million index linked Eurobonds to finance capital investment through to 2010
• Proposed final dividend of 7.52 pence per share to be paid on 14 September 2007, giving a full year ordinary dividend of 11.27 pence per share, an increase of 6.7%
• Delivering regulatory outputs for drinking water quality and environmental improvement
• Water supplies maintained without restriction; resource management initiatives implemented, including plans for a projected 60% increase in capacity at Abberton
• Leakage targets achieved for 8th consecutive year
• Best ever bathing water quality results.