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Portsmouth Water has more than doubled its pre-tax profit and cut its net debt, according to the company’s preliminary full year results for 2014/15.
The water only company recorded a pre-tax profit of £3.1 million, up from £1.3 million in the previous year.
Company turnover also increased – up to £38.3 million from £37.1 million – which is said to be as a result of a 2.5 per cent tariff increase and greater income from developers connecting new properties and diverting mains.
Operating profit remained at £5.9 million although operating costs increased by £1.1 million. A significant proportion of this cost increase came because Portsmouth Water increased its provision for bad debt by £0.4 million.
The net debt was cut by five per cent, falling from £95 million in 2014 to £90.2 million. This has brought the level of gearing down from 81.4 per cent down to 80 per cent. The company dividend was down to £0.8 million from £1.1 million in the previous year.
The results also highlighted that Portsmouth Water was top of Ofwat’s service incentive mechanism (SIM) rankings in each of the four surveys completed in 2014/15 for billing and operational matters.
Portsmouth Water chairman Mike Kirk said the company had delivered “excellent service to our customers and a strong financial performance”.
He added that the focus for the business now is “to deliver on our promises to customers made in our business plan and to prepare for market reform”.
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