Background
Matrix Group is a private equity backed multi-utility infrastructure company providing electrical networks to homes, businesses and data centres across the UK. In early 2022, the company decided to expand into offering water services to new-build residential developments. To do this, Matrix had to apply to become what’s known as a New Appointment and Variations (NAV) provider.
Designed to encourage more competition among water suppliers, NAVs are limited companies appointed by the regulator to provide water and sewerage services to a specific area, replacing the incumbent provider. Typically, they offer services for new housing developments.
Challenge
The water industry is highly regulated and applying to the regulator, Ofwat, to become a NAV is a complex, meticulous process requiring detailed submissions.
NAVs are considered on a site-by-site basis, so Matrix began the application framed around providing water services for several developments. However, by spring 2024 the company discovered the process was significantly behind schedule, potentially putting at risk the company’s reputation.
Needing to quickly address the problem and get back on track, Matrix Group CEO Rob Sparkes turned to Williams Bain for help. We immediately arranged for an interview between Rob and Harry Cowan, a specialist interim who had worked for us previously. Harry has an impressive track record in mergers, change management and company turnarounds. He also has vast experience in the utilities sector, having worked for several of the UK’s main water companies.
Rob was impressed with Harry and less than a week after contacting Williams Bain, Harry was in place as the Interim Head of Water.
Approach
With the company under pressure to secure the NAV appointment for an expectant client, Harry immediately set to work. Collaborating closely with Matrix’s Water Quality and Regulation Manager, Lyndsey Wainwright, Harry mapped out a strategic approach with clearly defined action points.
The immediate priority was to submit the NAV application to Ofwat, which entailed detailed documentation over multiple phases. At the same time, he put in place a business plan, strategy and financial projections, while managing multiple stakeholder expectations from the Matrix senior leadership team, its private equity investors and the client.
Matrix also had to satisfy MOSL, the market operator for non-household water retail, which involved both Harry and Lyndsey having to revise for and sit exams.
A key part of Harry’s role was also to coach, mentor and prepare Lyndsey to become Head of Water once his assignment was complete. He ensured that Lyndsey attended all meetings with the client, incumbent water companies and Ofwat, building her experience of operating at a senior level and raising her profile in the industry. Lyndsey also completed an advanced leadership course that Harry had developed.
Results
Thanks to Harry’s leadership and the support from the leadership team atMatrix they secured NAV approval within six months and now have a clear business plan and a solid foundation on which to build. Obtaining the NAV has raised Matrix’s profile across the industry and the company is now well positioned to reach its goal of securing four developments and serving a thousand customers by late 2025.
Longer term, Matrix Water has ambitions to become a top-five NAV by 2030 and achieve 30% growth year on year.
In a seamless transfer, Lyndsey is now Head of Water and joins Matrix’s senior leadership team. Harry has been asked to continue providing mentoring and support for Lyndsey through Q1 2025.
