Thames reports 63% slide in pre tax profit as operating costs and penalties bite
Increased operating expenses, and falls in revenue and fair value gains created a 63% slide in interim profits before tax at Thames Water to £43.3m for the six months 30 September.
The underlying figures are net of a £89.5m profit from the sale of Thames’ non-household retail business in the first half of the previous year.
Operating expenses were up 2.9% to £813.8 m – attributed, the company said, to a number of impacts including:
a 17% increase in demand arising from a surge in demand over the exceptionally dry summer;
greater staff costs caused by recruitment to improve customer service; and
Operating profit at £222.4m was down 19.3%.
Penalties mainly for failure to realise leakage targets along with other enforcements pushed revenue down 2.8% at £1,001.1m.