SES Water margin shaved

Profits before tax at SES Water fell 64% to £3.87m in the 12 months to 31 March 2021 compared to the previous year as operating margin slumped 12 percentage points to 17%.

Revenue at SES fell 6% to £65.82m and operating costs jumped £6.57m to £54.32m. A 32% fall in business sector sales to £7.36m, precipitated by the Covid crisis, coupled with the impact of tighter regulatory control on allowed income, reduced total revenue.

Operating expenses including energy costs to service the meter demand from households under Covid restrictions leapt 14% to £54.32m. But the offset from revenue generated by greater household use was limited as bills to unmetered customers were not changed. Operating profits fell 46% from the previous year's results

Growth in bad debt costs was partially offset by insurance receipts related to a chemical spill in 2017 at an SES treatment plant.