The net profit of £93.3 million for 2014/15, up from £84.4 million in the previous year, comes partially as a result of the company renegotiating supplier contracts and lower debt costs.
Operating costs fell from £135.9 million to £132.9 million, with charges on inflation-linked debt falling 11.2 per cent from £40.2 million to £35.7 million.
Other efficiency savings arose from pumping system and source optimisation and reducing the number of customer contacts through call centres through the use of digital engagement.
The efficiency drive is set to continue over the next five years, with Affinity Water’s PR14 business plan setting out £106 million in further running cost savings over the next five years.
Alongside these savings, the company has also earmarked plans to invest £500 million in its assets over the next AMP period.
The company’s turnover remained at £291.4 million, and the level of bad debt remained roughly constant, only increasing to 2.7 per cent from 2.6 per cent of turnover.
Affinity Water chairman Philip Nolan said he was “delighted” with the results, and that the year continued the “successes we have seen over the asset management period that has just ended (AMP5)”.
Company chief executive Simon Cocks added that the results were “exceptional” and that “this is an exciting time for our company and our people”.