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South Staffs half-year results: delaying capex after dry summer
(by Verity Mitchell) South Staffs has reported half-year results. Turnover increased to £96.6m from £75.9m, driven by the new price control. Operating profit before exceptional items grew to £24.2m from £15.8m. Debt/RCV decreased substantially to 61.1% from 69.4%, reflecting the delay in the ramp-up of capital expenditure. Purchase of tangible fixed assets in its cashflow statement fell slightly to £19.3m from £20.3m. Management flagged that, because of the prolonged hot and
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Dec 14, 20251 min read
Affinity half-year results: CEO’s departure a significant challenge
(by Verity Mitchell) Revenue for the half-year at Affinity Water increased by 20.9%, primarily due to AMP8 tariff rises and a rise in consumption due to the hot weather over the summer. Operating profit increased by 62.5% to £42m, driven by the increase in revenue and energy price reduction, and offset by a rise in inflation and increased operational costs due to the hot weather's impact. Shareholders have committed to inject £150m of equity into the company by 31 March 2026.
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Dec 14, 20252 min read
Southern half-year results: restoring customer trust some way off
(by Verity Mitchell) Operating profit in Southern Water’s half-year results rebounded from a loss to £186.9m, benefitting from a 47% regulated revenue increase from the new price controls. Its capital expenditure was up only 5% to 483.6m, a significantly slower start compared to peers that recorded double digit growth. Management admitted that the balance sheet remained under pressure. The outcome of the Competition and Markets Authority’s provisional redetermination has allo
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Dec 14, 20252 min read
Wessex half-year results: investment on schedule compared with peers
(by Verity Mitchell) Total revenues at Wessex Water increased by £45.5m to £332.5m, up 15.8%, mainly due to price rises permitted under regulatory mechanisms, according to a commentary on its half-year results. Operating profit increased by 25% from £78m to £97.7m. Bad debt charges grew by £0.7m because of the effect of new pricing but were lower as a proportion of overall household revenues. Net capital investment for the six months was £248m, a significant increase on £189.
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Dec 14, 20252 min read
Anglian half-year results: balance sheet still under pressure
(by Verity Mitchell) Anglian Water’s half-year revenue increased by 20.8%, reflecting regulatory price changes and higher household demand. Operating profit increased by 37.8% to £376.1m. Capital expenditure was up 3.6% to £547.3m — a smaller increase than the double digit increases of some of its peers. The company has made progress in key areas such as water recycling, tackling internal and external flooding, and reducing blockages. In Ofwat’s 2024/25 Water Company Perform
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Dec 14, 20252 min read
November rain ends drought in most areas
(by Karma Loveday) Several areas have announced a change in drought status, following recent wet weather and 149% of long-term average rainfall in November. The East Midlands, West Midlands and Yorkshire have moved into recovery status. Yorkshire Water has removed its hosepipe ban. It said its reservoir levels are now at 91.6%, and that Hull aquifer levels are at 77%, and that this means that available water resources across reservoirs, rivers, and groundwater sources are a
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Dec 14, 20251 min read
CCW sets out “non-negotiable” principles for Ofwat as it deals with Thames
(by Karma Loveday) The Consumer Council for Water (CCW) has set out some “non-negotiable” principles that it has urged Ofwat to follow as it works on the long-term sustainability of Thames Water. In a letter, CCW chair Rob Wilson told Ofwat chair Iain Coucher to pay heed to the following as it assesses any current or future proposal from creditors or candidates to become Thames’ new owners: No special treatment on enforcement — Thames Water must be held fully accountable for
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Dec 14, 20252 min read
Consumer Scotland seeks water complaints transparency
(by Karma Loveday) Consumer Scotland is seeking greater transparency in how customer complaints are reported in the Scottish water sector. It argued this would help drive further service improvements and boost accountability. In a report, the statutory customer body noted that Scottish Water does not currently publish as detailed or accessible a breakdown of customer complaints as available in the English and Welsh water sector, or in the energy, communications and financial
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Dec 14, 20251 min read
Other stories from last week
(by Karma Loveday) The Drinking Water Inspectorate has announced that the hearing for the prosecution of South West Water for potential offences under section 70(1) of the Water Industry Act 1991 will take place on 4 March 2026 at 2pm before Exeter Magistrates’ Court. The prosecution follows the Inspectorate’s investigation into the Cryptosporidiosis outbreak event in the Brixham area in 2024. The Environment, Food and Rural Affairs Committee is to hold a public evidence s
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Dec 14, 20253 min read
Defra to review sludge spreading on land as part of revised EIP
(by Karma Loveday) Defra is to review the rules governing the spreading of sewage sludge on land, to reduce health and environmental risks from PFAS. That was part of a strengthened Environmental Improvement Plan (EIP) published last week by the Government. A key feature of the new five-year environmental roadmap is the first-time publication of delivery plans for the statutory targets set under the Environment Act. These provide visibility and will help progress to be tracke
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Dec 7, 20254 min read
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