Anglian axes dividend and injects equity to cut gearing as interim pre tax profits flat
Anglian Water paid no interim dividend and made an equity injection of £22.0m, with more to follow up to 2025, under its plan to reduce gearing. Meanwhile the firm reported small change in interim profits before tax net of inter company interest payments and fair value gains on derivatives.
The underlying pre tax income at £61.9m for the six months to 30 September 2018 was £1.4m up on the same period in the previous year.
Revenue for the report period ticked up 3.5% to £657.2m due to price increases and a boost by increased consumption fuelled by the dry summer. That offset a 4.1% fall in operating profit to £226.4m following an 8.1% hike in operating costs to £297.2m brought be the Beast from the East storm.
The impact of newly commission assets and lifetime reductionist existing assets lifted depreciation and amortisation by 8.8% to £171m.
Underlying profit before tax discounted interest income of £96.4m on an inter company loan sealed in the previous half year and fair value gains on derivatives of £56.3m down £65.9m year-on-year.