Northumbrian Water Group plc has reported pre-tax profits up 11.5% to £170.2 million for the year ended 31 March 2010, on revenue up just 1.5% to £704.7 million.
The company said that the revenue increase mainly reflects the uplift in tariffs to support ongoing high capital investment.
Capital investment in the period was £207.6 million, down from £228.9 million the previous year. Investment for the five-year AMP4 period has exceeded the funding allowed in the 2004 final determination by £92 million, as outperformance on the quality programme has been more than offset by increased investment on capital maintenance, the company said. This includes £64 million investment in a new sludge strategy, including the Bran Sands advanced digestion plant, and additional investment in response to extensive sewer flooding in recent years.
Ongoing capital works include a capacity increase at Abberton reservoir in Essex.
Chief Executive Officer Heidi Mottram said "The Group continues to produce good financial and operational results. Income increased slightly despite the impact of the economic downturn; business closures amongst our customers appear to have stabilised.
The Group has financing in place to cover all its requirements through to the end of 2011. We have accepted the outcome of the price review for the period to March 2015 and have begun the programme of delivering the agreed outputs and increasing our already high standards of customer service. There is a sound base from which to create more efficient operations."