The company’s profit after tax for the six months to 30 September 2014 is £77.1 million, fractionally down (£0.1 million) on the same period last year.
The steady profit levels came despite an £11 million increase in operational costs (to £238.7 million) primarily due to general inflationary increases and costs associated with newly commissioned plants. This was partially offset by increased efficiency within the business.
The turnover for Anglian Water increased from £624.8 million in H1 2013 to £637.3 million for the same period this year. This is due to a 2.6 per cent inflationary price increase, but was curtailed by a reduction in demand because of the wet Spring and a relatively cool and wet July and August in comparison to the prior year.
Despite the increase in revenue, operating profit fell by £2.9 million to £260 million because of increased costs and depreciation.
The profit before tax was £104.9 million for H1 2014 compared to £86.9 million the previous year. But this translated into a lower post tax profit because the tax charge increased by £18.1 million to £27.8 million.
Bad debt charges for the six month period were reduced by £1.3 million to £15.5 million, and dividends of £111 million were paid during the period, up from £95 million in H1 in 2013.
Anglian Water’s capital investment for H1 of 2014 was £175.4 million, down from £214.5 million in the same period in the previous year.
The company is awaiting its final determination from Ofwat on 12 December but said that “work is already well underway to deliver against the promises” made in its draft business plans submitted to the regulator, including preparations to introduce a social tariff from April 2015.