Business Weekly - Cambridge, UK

It announced plans to return £1.77 per share in cash to shareholders via a share buy-back.

AWG will return the money to shareholders once it has secured new working capital for the infrastructure management business, the terms of which have been agreed in principle.

The restructuring of the company has been implemented. This has entailed the ringfencing of the regulated water and wastewater business Anglian Water Services Ltd (AWS), the transfer of AWG Group debt into AWS and the raising of new debt through a bond issue.

AWS has recently completed an issue of £1.76 billion of new debt and so has increased its gross borrowings to approximately £3.48 billion – including group debt of £1.72 billion transferred to AWS.

Chairman Robin Gourlay has decided to retire in January 2003 and the board will propose that he is succeeded by Peter Hickson, currently non-executive deputy chairman.

AWG Services PLC says that following the sale of Anglo-Welsh (Overseas) Ltd it is now focusing its efforts on identifying a suitable acquisition as it reports a widening in pre-tax loss for the six months to April 30 to £682,694 from £510,763.

It said: “Given the company currently has no trading activities it is likely that any proposed acquisition will, under the AIM Rules, be classified as a reverse takeover in view of its size.”