Published Date:
23 June 2009
By PETER RANSCOMBE
BRITAIN'S biggest water company yesterday posted higher full-year profits, but warned of a "challenging" year ahead as the recession piles on the pressure.
Thames Water, which provides drinking water to 8.5 million customers, has squeezed costs to grow profits 4 per cent to £435.1 million in the year to 31 March – but said it was now "in a very different climate".
The firm said: "The increased cost of borrowing, combined with rising levels of customer bad debt and a sharp decline in commercial and metered demand for water is having a direct impact on the business."
Thames's bad debts rose 16 per cent to £45.1m over the year, while its costs for power jumped by 30 per cent to £78.5m.
Lower metered demand due to last year's wet summer dented revenues by £10m.
David Owens, Thames Water's chief executive, said: "The prolonged period of instability in the financial markets means we are now operating in a very different climate to last year."
-
Last Updated:
22 June 2009 8:20 PM
-
Source:
The Scotsman
-
Location:
Edinburgh
