Wessex reports dip in pre tax income as new costs bite
Wessex Water joined the list of water companies hit by rising costs, reporting a 4.5% dip in pre tax profit to £152m for the year to 31 March 2017 “because of the increased costs of meeting new obligations”.
Total operating costs were up £12.4m to £299m. Staff costs were up £10.4m year-on-year to £98.5m with £59.3m allocated to operating costs – a £2.8m increase on the previous year. Other cost increases included £5.4m on repair expenses, a £2.7m addition to depreciation. Financing cost were down a shade at £74m.
Operating profit fell £7.9m from the previous year to £226m on turnover up £4m to £525m. The company said it achieved “all our key ﬁnancial targets in the year.”
Under its affordability action plan the number of low income customers receiving support with their bills or debt was up 28% ion the previous year. Wessex reported having some 10,000 customers receiving its main social tariff which offers discounts of up to 90% for those in the greatest financial hardship. And 3,000 pensioners on Pension Credit are receiving a 20% discount on their bills.