The company’s parent group Pennon posted its financial results for H1 2015/16 on Friday, reporting an overall increase in EBITDA of 15.9 per cent to £231.7 million.
Pennon’s water businesses reported an EBITDA of £173.6 million, up 0.8 per cent year-on-year, with SWW reporting an EBITDA increase of 4.2 per cent to £165 million and Bournemouth Water adding £8.6 million.
Water business revenues were up 4.1 per cent to £279.3m as the tighter price control at South West Water was offset by higher than expected customer demand and the contribution form Bournemouth Water.
SWW claimed the only “marginal” rise in its EBITDA was as a result of Ofwat’s new regulated price controls, but added that “good progress” had been made on cost savings and efficiencies.
SWW chief executive Chris Loughlin said: “South West Water is confident of delivering and outperforming its business plan in K6 and we were pleased to receive the recent CMA clearance of the acquisition of Bournemouth Water.
“Pennon is now integrating Bournemouth Water into South West Water delivering significant benefits to customers and shareholders. The combined business is aiming to set the benchmark for efficiency at the next price review.”
Pennon Group director of finance Susan Davy said: “Pennon has delivered a strong earnings performance in the first half of 2015/16. All businesses across the Group are performing well.
“Results are likely to be weighted towards the first half of the year and are on track to meet management expectations for the full year 2015/16.”
The Bournemouth-SWW merger was given the final go-ahead by the Competition and Markets Authority (CMA) last month, after Pennon completed the £100.3 million takeover of Bournemouth in April.