Business Stream eyes English acquisition

Business Stream is planning a further assault on the English non-household market, having won a contract for three House of Fraser stores, including its Oxford Street flagship, and opening the door to an acquisition.

Speaking to Utility Week following the announcement of the House of Fraser contract, chief executive Johanna Dow signalled the company’s interest in acquiring the non-household retail arm of any English incumbent water company looking to exit the market, which opens in 2017.

She said such an acquisition “is definitely something that is on the radar,” adding that the company is “perusing a number of different opportunities for market entry into England post-2017.”

Dow stated that the lack of clarity over exactly how the market will look means “nothing can be ruled out” and that Business Stream is “always looking for additional opportunities on how we might enter that market and establish a bigger footprint”.

A number of incumbent water companies are expected to exit the market, to focus on their wholesale and household businesses. These incumbents will seek to sell their existing non-household business, with the first deal eagerly awaited by the market. Ofwat is due to publish a consultation on market exit later this year.

As part of the House of Fraser deal Business Stream will also install automated meter readers into 10 House of Fraser stores in England, following a successful deployment at its stores in Edinburgh and Glasgow. These will provide 15 minute meter readings and help to identify any leaks.

On the deal, Dow said: “We’re really pleased. It is a big brand name and a company that really focusses on its environmental credentials, so it works really well for us and our brand positioning.”