Thames took £99m in retail sale to Castle as first-half pre-tax profits fell 41%
Thames Water has revealed it received £99m through its sale of its business retail book to Castle Water as it posted a 41% fall in profit before tax at the half year mark compared to the same period in the previous year. The company reported significant improvements in customer service markers and
Pre tax income for the six months to 30 September 2016 was £127m on revenue for the period of £1,024.3m – near unchanged from the first half in 2015. revenue included for the first time a contribution from the Thames Tideway Tunnel project at £15.2m.
Thames’ operating costs for the accounting period were up £58m with a depreciation increase adding £22m as new assets came into play. Operating profit was off year on year by £30m at £317m.
Fair value losses on derivative instruments climbed from £11.6m at the same juncture in 2015 to £179.1m now. These contributed to a reported pre tax loss on ordinary activities of £36.6m. A tax credit of £73.6m gave a profit for the period of £37m.
Improvements in customer service included a halving of second stage complaints and 95% of complaints being resolved first time.
Chief executive officer, Steve Robertson, who joined joined in September 2016, said: “We’ve lagged behind others in our customer service in recent years, but we’re seeing record performance in resolving complaints first time and we’re working hard to accelerate our rate of improvement.
Meanwhile, a reputable source has indicated to THE WATER REPORT that Thames' owner, Macquarie, is close to a conclusion in its search for a buyer for the London water company.