Durham-based water retailer Wave has chalked up a boost in sales and profits on the back of significant contract wins.
The business – part owned by Northumbrian Water after being formed from Anglian Water Business and NWG Business – helps commercial customers to drive down water usage and lower their utility bills. It has a large customer base across England and Scotland, serving clients from large industrial and commercial customers, to SMEs in the public and private sectors.
Wave has now posted accounts for the year ended March 2024, detailing business highlights that include winning the largest single contract in the English market, with the Ministry of Justice. Group revenue for the year ended 31 March, 2024, jumped 14% from £435m to £495.5m. Pre-tax profit rocketed from £229,000 to £7.05m, and operating profit rose from £4.8m to £12.3m. The previous year’s overall loss of £521,000 was converted to profit of £4.7m.
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Employee numbers also rose, from an average of 317 to 327 staff members, with increases made across its sales, operations and support divisions. A report within the accounts said the results reflected a full year of trading following changes to Ofwat’s Retail Exit Code, which allowed retailers across England to increase price caps, as well as significant wholesale price increases, leading to higher revenues.
The report said: “Throughout the year, the group continued to perform well in the public sector with success in renewing a key public sector framework and in securing a number of customers on to existing frameworks. The group was also successful in winning the largest single contract in the English market, the Ministry of Justice, with a tender tailored to the specific needs of the sector, with quality and social promise at the forefront.
“Renewal of existing frameworks will be an area of significant focus in the coming year as the group solidifies its position as the premier retailer for public sector customers.”
During the year, Wave also continued to deliver its Social and Sustainability Promise, a strategy that supports the United Nation’s Sustainable Development goals and outlines the group’s commitments to doing good across four key areas – people, planet, company and customers and communities.
The firm said: “Wave has worked to influence and drive positive change in each area with strong results.”
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Last February Wave decided to relocate from Pity Me to a smaller office to maximise energy efficiency and recreate its community feel with a more collaborative working space.
The company’s employees adapted to a hybrid working model following the pandemic, meaning its former head office became too large, prompting a move into a space within Salvus House in Aykley Heads, Durham, while maintaining a second office in Peterborough.
Lucy Darch, CEO, said: "Wave is now the third largest retailer in the non-household water market in England. Our focus has been on making continuous improvements and embracing innovation and new technologies to provide customers with great service and accurate bills supported by good quality data, processes and controls.
"The 2023/24 results represent a positive step in Wave’s journey to a profitable and efficient business, representing the first year of profit after tax at a group level since market opening. After a number of years recovering from Covid-driven volatility in consumption, revenues and bad debt, the 2023/24 results show good growth in revenues, retention rates and therefore stability.
"The non-household water market is deregulated but remains price-regulated, so customers receive value for money. The revised pricing for default customers outlined in Ofwat’s updated Retail Exit Code allowed 4% net margin before bad debt, our performance shows a healthy improvement for the total portfolio from 1.7% to 3%.
"What makes Wave different is our drive to help businesses run better and go greener by working together to drive down water wastage and find efficiencies to reduce consumption, to ultimately help them to save money on their bills. Our performance isn’t just a reflection of what we’ve accomplished so far, but a promise of our ongoing commitment to our customers and our vision for the future.”