Affinity Water‘s profit plummets to £46 million

Affinity Water has announced its annual profit before tax fell to £46 million from £60 million the previous year, as it revealed its yearly results for financial year 2015/16.

Operational costs for the year increased by £26.3 million to £237.5 million, a 12.5 per cent increase, while revenue rose to £303 million from £296 million in the same period.

Aggregate, asset-related expenditure for the year was lower than the amount for 2015/16. This was due to a slower than anticipated start to its metering programme and delays in technology selections for water quality projects.

The company has spent £103 million in enhancing and maintaining infrastructure and assets in 2015/16, with work expected to accelerate in 2016/17. Schemes include a mains cleaning project on Romney Marsh and an upgrade to Denge water treatment works.

Key achievements during the period included installing 30,000 meters under a water saving programme; redesigning its largest river intake pumping system to make significant energy savings; and reducing the number of burst mains by 9 per cent.

However, one drawback for Affinity was its failure to meet a performance commitment related to the speed of response to supply disruption. The company has now said that its approach to reducing unplanned interruptions has now been re-focused on prevention, restoring supplies and fixing the problems that arise quickly.

Affinity Water Chief Executive Simon Cocks said: “I am really proud of the team at Affinity Water and I am delighted that we have made a strong start in the first year of our ambitious five year plan for our customers and communities.

“When I look back at our performance for 2015/16, the first year of our five year Business Plan, I recognise that there is more to do in the coming years to deliver on all our commitments, but this is a reflection of the genuinely stretching targets we have set ourselves.”

A version of this article first appeared on wwtonline