Pennon record £114m pre-tax profit
The firm has made a return to profitability - after losing more than £70m before tax last year
Last updated 17 hours ago
The new boss of under-fire South West Water owner Pennon has said the group must “rebuild trust” after being hit with a record near-£2 million fine following a parasitic outbreak in its supply in Devon.
Keith Haslett, who became chief executive on April 1, said Pennon “must learn lessons from this incident” after the group was prosecuted earlier this month at Exeter Magistrates’ Court for supplying water unfit for human consumption.
It comes as Devon council is now considering taking legal action to tackle sewage discharges and poor water quality in areas of the county.
In Pennon’s full-year results on Wednesday, the group revealed a return to profit, with pre-tax profits of £114.4 million for the 12 months to March 31 against losses of £72.7 million the previous year.
Mr Haslett said he was “deeply saddened by the impact our business had on customers in the Brixham area during the 2024 cryptosporidium incident”.
“Whilst I have only been CEO for a few weeks, it is very clear that we must learn lessons from this incident and work hard to rebuild trust with the customer and communities we serve, both in Brixham and beyond,” he said.
Financial highlights showed a 55% increase in underlying EBITDA due to increased revenues and focus on cost management, alongside a 25% rise in regulated water revenue stemming from enhanced regulatory allowances and higher consumption.
Operationally, the Pennon Pollution Incident Reduction Plan yielded a 34% year-on-year decrease in pollution incidents, alongside a 17% reduction in storm overflow use despite heavy rainfall in South West England.
Two Pennon Power sites in Fife and Aberdeenshire are now fully energised, contributing to strong water quality performance and investment in environmental initiatives, such as restoring 250 hectares of peatland and engaging thousands in volunteer and educational events.
Looking ahead, Pennon aims to create a 34% growth in RCV over AMP8, augmenting asset health investments while maintaining financial performance improvements and responding to anticipated changes in the water sector through efficiency and innovation.
A strategic update is expected before the end of September 2026.
You can read the full investor update here.