Thames' revenue lift offsets hike in operating costs

A 3.5% year-on-year lift in revenue to £2.11bn at Thames Water for the year to 31 March 2020 offset an uptick in operating expenses to boost operating profit 8.3% to £513.4m.

The added revenue came from price increases and included a £17m deferral “to mitigate the impact of bill increases for customers,” and a rebate to customers of £31m as part of the penalty for earlier missing of leakage targets.

Operating expenses for the report period rose 2% to £1.667bn with operating efficiencies of £31.2m and a rates reduction of £19.1m – due largely to a rebate – offsetting: a £20.2m increase in staff costs; a £35.2m hike in depreciation and amortisation; and exceptional restructuring costs of £27.7m.

These underlying figures do not include revenues of £64.3m from Bazalgette Tunnel (Thames Tideway) up year-on-year from £47.5m. .

A leap in net gains from derivatives of £190.8m from a net loss of £37.7m in the previous year boosted underlying profit before tax at Thames Water by 445% to £369.7m.