Profits up at Yorkshire Water

The utility reported an increase in turnover of four per cent to £936.2m.

Yorkshire Water said capital expenditure fell four per cent to £385.7m.

In a statement, Richard Flint, chief executive, said: “These results reflect another solid year for the company, its customers and investors.

“The flexibility of the region’s water supply ensured that we were able to minimise the impact of last year’s extreme weather events on our customers and the environment alike.

“We have kept operating costs under control, have significantly out-performed our leakage reduction targets and our focus on pollution prevention means we continue to make strong progress in this area.”

In preliminary results for the year ending March 2013, the Bradford company said it recorded its lowest ever level of leakage and improved its performance in preventing pollution during the period.

The company also reported its best year ever in terms of health and safety.

The average Yorkshire Water bill rose by 5.1 per cent this year, but the utility said it expects dividends to be “significantly lower” between now and 2015.

Yorkshire Water said yesterday it chose to meet additional costs from reinvesting in energy and network improvement schemes instead of passing them on to customers.

The company is developing its spending plans for the period 2015-2020 and is working closely with the regulator to look at more innovative solutions to managing the region’s water supply.

It said excellent progress was made in developing the detail behind its vision.

Industry watchdog Ofwat hit out at water companies earlier this year for excessive returns at a time of austerity.

“I am surprised that companies have not taken more steps to recognise customers’ pain as bills go up,” said Jonson Cox, the chairman of Ofwat.

A report by the New Policy Institute think tank in April slammed the industry in England and Wales, privatised 25 years ago, for its opaque ownership, powerless consumers and high profits, which typically make up 30 per cent of the average water bill.

Yorkshire Water was bought in 2008 for £3bn by a consortium of international investors.