Annual Report 2015
Strategic Report:
Executive Summary
Group Overview
South Staffordshire Plc is a highly
respected integrated services group
of businesses with a regulated
water supply company, South Staffs
Water, comprising two operational
regions, South Staffs and Cambridge,
and two non-regulated service
divisions, SSI Services and Echo.
Group Strategy
The Group’s strategy is to continue
to grow by providing high levels
of service quality while remaining
price competitive and maintaining
a safe working environment in all
of the Group’s operations. Details of
how the strategy is implemented
across the Group are provided
throughout the Strategic Report.
South Staffs Water
South Staffs Water has seen a year
of change, partly resulting from the
challenges arising from Ofwat’s Final
Determination. Customers will see
4
water bills reduce by 4% in real terms
over the five-year period to March
2020, meaning that customers will
continue to see one of the lowest
bills in the industry. The business
has therefore had to make some
difficult decisions to align its costs
with this reduction in charges,
including a reduction in manpower.
It has become clear during the year
that significant work is required
at Seedy Mill Treatment Works to
improve water quality performance.
This is a priority for the business, which
is working closely with the Drinking
Water Inspectorate to enhance the
site’s assets and performance.
During the year, it was confirmed
that, for the three years to 2013/14,
the business was ranked top out of
the 18 companies in the England and
Wales water industry for SIM, Ofwat’s
measure of customer experience.
The business is now focussed on the
challenges and opportunities that the
AMP 6 investment period presents,
including increased competition
in the non-household sector, all of
which will require the continued
focus on operating efficiency and
an excellent customer experience.
SSI Services
SSI Services has seen a challenging
year, being the last year of the AMP
5 investment period in the water
industry when spending by some
of its largest clients is typically
lower than normal. Despite this,
the division has managed to grow
revenue through a combination
of contract awards, successful new
service offerings and one-off projects.
However, profit margins have been
impacted, due partly to start-up
costs on some contracts and less
emphasis by clients on planned work.