Yorkshire Water catching up on enhancement expenditure
Yorkshire Water’s half-year results saw operating profit increase by 25.5% to £173.9m, well above its allowed revenue increase of 6.5%, given relatively smaller rises in operating costs.
Capex increased by 31.6% to £404.3m compared to H1 2023-2024. Management intends to invest almost £850m across its region this year, which includes the completion of its £180m programme to reduce storm overflow use.
Yorkshire’s run rate for environmental enhancement investment has been consistently behind the schedule agreed with Ofwat for AMP7. This acceleration of investment has increased its adjusted debt/RCV to 73.9% from 70.8% at 30 September 2023.
Yorkshire successfully improved its performance ranking by Ofwat from ‘Lagging Behind' to ‘Average' in 2024. It has published a new service commitment in order to improve further, especially on reducing pollution incidents. It remains challenged relative to Ofwat’s targets for internal sewer flooding, priority services, supply interruptions and drinking water quality.
No dividends were paid to Yorkshire’s ultimate shareholder Kelda Group in the period.
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