British utility company Pennon Group, owner of South West Water, reported a £35.1m loss for the latest financial year, a drop from the previous year’s £16.8m profit, due to the Brixham water supply issue.
The firm faced major costs after supplying Brixham with water contaminated by cryptosporidium, leading to over 100 cases of illness in May 2024. The scandal incurred approximately £12m in costs for restoring water quality and £16.6m for restructuring activities. Capital expenditure increased slightly to £652.5m.
Despite challenges, Pennon, alongside United Utilities, plans to increase dividends annually with inflation until 2030, pledging £3.2bn in investment. The company is transitioning into its next regulatory period, K8, with plans for over £1bn in investments from 2025. Although revenue exceeded £1bn, rising expenses impacted earnings, resulting in a loss of 16.1p per share.
CEO Susan Davy highlighted efforts to reshape costs and maintain financial stability, acknowledging the impact on customer bills, which are set to rise in 2025/26 for the first time in over a decade.
