South West Water owner Pennon has reported a “strong return to profitability” despite higher costs in the face of hot summer weather.
The FTSE-250 water firm said it maintained “resilient” supplies of water despite high levels of demand due to the weather conditions.
It came as the company said it expects earnings to increase by 60% year-on-year, taking into account revenues deferred into the next financial year.
Bosses stressed that trading between April 1 and September 25 means the company is on track to meet expectations for the current financial year.
Susan Davy, group chief executive, said: "We're driving real improvements for our customers and communities whilst delivering a return to strong profitability.
"Despite the pressures of a hot summer, we've maintained resilient water supplies and continued to improve services for our customers. Whilst there is more to do, our pollution reduction plans are delivering tangible benefits, halving the number of pollutions and spills from storm overflows, reducing our impact on the environment."
The announcement comes just two weeks after South West Water was told by the water regulator that it will need to pay out £24m over failures linked to wastewater spills.
In the statement to investors on Friday (September 26), Pennon said progress was being made to "draw regulatory investigations to a close".
The Exeter-based company said Environment Agency prosecutions relating to wastewater incidents dating back to 2015-2021 were progressing through the relevant court process, with action taken to resolve issues.
It added that the Drinking Water Inspectorate (DWI) had also progressed the court process relating to the Brixham water contamination incident last year. In March, Pennon said the parasite outbreak, which affected thousands of homes in Devon in 2024, had pushed up costs by £36m.
Last month, Cornwall's business owners slammed bosses at South West Water over a "lack of transparency" when water supply issues arise. The county’s chamber of commerce told Business Live it had received an “unprecedented number” of enquiries from businesses over the summer, including cafes and campsites, complaining about the firm.
In July, Ms Davy announced plans to retire from the business days after it paid a major settlement to regulators after wastewater treatment failures. Pennon said at the time it would conduct a formal process to appoint her successor, with Ms Davy remaining at the head of the business until the new chief executive is agreed upon.
