Summer sales hike boosts profit before tax at South West Water
South West Water reported an underlying in profit before tax of 4.3% to £100.3m for the half year to 30 September driven by a 2.7% hike in demand over the hot summer and increases in tariffs and connections. Operating costs ticked up 1.6% on revenue up 3.2% to £301.5m.
Earrings before interest, tax, depreciation and amortisation at business water retailer, Pennon Water Services, was up £0.4m at £0.9m on revenue of £84.1m from £83.5m at the previous interim. Depreciation and amortisation up £0.1m to £0.4m and net interest at £1m – £0.3m higher – made a pre tax loss of £0.5m, unchanged year on year.
Parent group, Pennon, posted an underlying interim profit before tax of £142.5m – an 8.7% increase on the same period in the previous year. Reported pre tax earrings were £133.6m net of an £8.9m charge on fair value gains from derivatives. Group revenue was up 3.1% at £746.7m.