"One offs" take toll on Affinity results
Affinity Water reported its financial results for the year to 31 March 2020 as reflecting the impact of a number "one-off costs" while its underlying cost base stabilised. The firm posted profit before tax down 99% year-on-year to £100,000.
Revenue fell from £311.6m to £307.2m attributed primarily to a drop in non-household sales along with “a large number” of temporary closures by businesses related to Covid 19. Operating profit fell 22% to £45.6 m as operating costs increased 3.4% to £280.1m. The company reported inflation at 2.63% as among the largest contributors to the hike costs along with depreciation following “ongoing investment” in IT and mains assets.
High unit costs also raised operating expenses according to Affinity as the complexity of the work done increased and reinstatement costs following costly bursts. Lower bulk water costs arising from a wet winter partially offset the cost increases.
Affinity attributed a £1.7m bad debt charge to Covid 19 effects.