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South West Water’s parent firm has made a £90.4m pre-tax profit for the past six months - a 4.3%% hike on the same period in Covid-hit 2020 - partly thanks to its acquisition of Bristol Water.

Exeter-headquartered Pennon Group Plc saw a profit increase on the £86.7m underlying profit made in the first six months of the 2020/21 financial year and also saw a 21.8% jump in revenue to £389.3m for H12021/22.

It was helped by the June 2021 acquisition of Bristol Water, which contributed to £41.6m to underlying revenue. This was described as “ahead of expectations” and also contributed £7.2m in profit and capital investment of £12.7m.

Underlying revenue was also helped by the recovery of non-household demand, as businesses opened up post-lockdown, and contract wins for Pennon Water Services, the firm’s business water division.

Pennon, which employs about 2,500 people mostly in the South West, called the performance “resilient” after the Covid pandemic and Government imposed price cuts took a bite out of earnings in 2020/21.

But it’s non-underlying pre-tax profit of £79.9m, up by 29.1%, was hit by £96.9m of deferred tax for the future change in tax rate, pitching the company into a £22.2m loss after adjustments.

Nevertheless, Pennon said results were in line with management expectations and a “sector leading” dividend growth of 4.9%. Pennon also pointed out that South West Water saw a 60% reduction in complaints, with bills lower than a decade ago, with £3.8m of affordability support delivered to customers most in need.

Susan Davy, group chief executive, said: “We are reporting resilient performance across the group, we continue to build momentum, driving sustainable growth, and ensuring we are well positioned to help tackle climate change.