Cash flows at Peel’s water firm with £10m loan
PEEL Water Services has secured a new £10m funding line from Barclays.
The company is a recent venture which was set up by Peel to manage the rights to extract and discharge water into its watercourse assets, including the Manchester Ship Canal, a 50-mile stretch of the Bridgewater Canal and its docks at Liverpool, Birkenhead, Clyde, Sheerness and Heysham.
In 2010, the company began a lawsuit against United Utilities seeking damages for alleged trespass and discharges into the Manchester Ship Canal, and it has since earned revenues by charging companies – including tenants at The Trafford Centre – for water use.
Recently-filed accounts for Peel’s Land & Property business show that the division increased revenues in the year to March 31, 2011, to £6.4m (2010: £4.1m). Net profit more than doubled to £1.1m (£410,000).
The loan from Barclays is a three-year, non-amortising loan securitising future cashflow generated by the business.
Barclays Corporate relationship director David Culshaw said: “Our strong track record in delivering tailored funding solutions to Peel Group ensured we were able to provide the best possible solution to meet the funding needs of Peel Water Services.
“This innovative transaction demonstrates our continued support for the Peel Group and our ability to tailor a solution to fit their requirements.”
