Castle Water Company Profile

Background

Founded in 2014, Castle Water has emerged as the UK's largest independent business water retailer, serving over 350,000 businesses, charities, and public bodies across England and Scotland. The company's mission is to provide quality and trusted water retail services with an unwavering commitment to fairness and transparency. Over the past decade, Castle Water has grown to a team of over 450 professionals, each dedicated to core values of integrity, transparency, and fairness. The company operates independently, without ties to traditional network owners, enabling it to challenge network decisions and work proactively to offer tailored services at competitive prices.

Key Strategic Focus

Castle Water's strategic focus centers on delivering market-leading water services to businesses of all sizes, from large multi-site customers with complex needs to SMEs, start-ups, and sole traders. The company emphasizes customer-centric solutions, including Automatic Meter Reading (AMR), water efficiency audits, contingency planning, and leak detection and repair. By leveraging its independence, Castle Water challenges network owner decisions to provide the right service at the right price, ensuring customers use only the water they need and save on water bills.

Financials and Funding

As of September 2024, Castle Water's annual revenue reached approximately $75 million. Despite a drop in revenue, the company reported a profit before tax of £3.9 million, up from a loss of £14.4 million in 2020. This financial turnaround is attributed to the hard work of Castle Water staff and a long-term view of customer relationships.

Technological Platform and Innovation

Castle Water continually invests in the latest technology to provide advanced water management services. The company has developed an omni-channel customer service system and a billing platform capable of real-time meter readings, ensuring accurate billing. In February 2024, Castle Water re-launched its customer portal with new features and improvements, including consumption charting to help customers improve water efficiency and online banking options.

Leadership Team

John Reynolds OBE, Chief Executive Officer

Co-founder of Castle Water in 2014. Former member of the Water Industry Commission for Scotland and a fellow of the Institution of Engineering and Technology.

Graham Edwards, Co-founder and Director

Co-founded Castle Water in 2014. Serves as the treasurer of the Conservative Party and has donated millions of pounds to the party.

Competitor Profile

Market Insights and Dynamics

The UK business water market has experienced significant changes since deregulation, allowing businesses to choose their water and wastewater retailers. This has led to increased competition among retailers to offer better services and pricing.

Competitor Analysis

Castle Water's main competitors include:

Osmoflo: A global water treatment company.

Scottish Water: A public sector body providing water and sewerage services across Scotland.

SouthWest Water: A provider of water and wastewater services.

South East Water: A supplier of drinking water.

These competitors focus on various aspects of water services, from treatment to supply, and operate in different regions, contributing to a diverse competitive landscape.

Strategic Collaborations and Partnerships

Castle Water has engaged in significant collaborations to strengthen its market position and expand capabilities. In 2017, the company acquired Thames Water's corporate customers, enhancing its customer base. In 2024, Castle Water entered discussions to take a controlling stake in Thames Water, aiming to provide new equity funding and potentially pursue a public listing to increase transparency.

Operational Insights

Castle Water's independence from traditional network owners allows it to challenge network decisions and offer tailored services at competitive prices. The company's proactive approach to problem-solving and commitment to customer service excellence set it apart in the industry. Investments in technology and customer-centric solutions further enhance its competitive advantage.

Strategic Opportunities and Future Directions

Castle Water plans significant growth and investment, focusing on further integration of automated self-service activities for customers. The company continues to hire staff to support its expansion and remains committed to providing market-leading business water services. Future developments include enhancements to the customer portal, such as consumption charting and online banking options, to improve customer experience and water efficiency.