Anglian beats delivery targets as price controls and costs bite into profits
Anglian Water has highlighted its performance against targets for 2015-16 having achieved its base objectives in all of its outcome delivery incentives (ODIs) and picked up maximum and near maximum rewards in three of them.
In its report for the year to 31 March 2016 Anglian said it had overcome "higher customer expectations, new ODI and SIM targets and complex regulatory outputs, all while absorbing unfunded cost pressures."
Underlying operating profit – excluding fair value changes on energy hedges and financial derivatives – was off by near 25% with increased financial costs taking underlying pre tax profit down 51% year on year to £89.1m. The finance cost was largely the impact of lower inflation on index-linked debt, offset in part by a lower proportion of interest capitalised.
Revenue was down £59m at £1185bn.