Anglian Water has published its financial results for the year ended 31 March 2010. Turnover for the year was £1,099.8 million, an increase of 6.0 per cent over the previous year, with business volumes remaining steady despite the recession in the wider economy.

Operating profit for 2010 was £463.2 million compared with  £445.6 million in 2009. Operating costs (before exceptional costs) for the year increased by £22.6 million (6.2 per cent) to £386.1 million (2009: £363.5 million). The charge for bad debts increased by £13.5 million compared with the previous year – Anglian is now in the process of implementing new debt management processes.

Other significant cost increases comprised power, rates and operating costs for newly completed infrastructure assets. Reorganisation to prepare for the AMP5 period (2010/15) gave rise to exceptional costs of £8.8 million. This involved the introduction of more flexible working practices in operational areas, a review of support services and renegotiating key supplier contracts.

The company said it had successfully completed its AMP4 investment programme with a total capital investment of approximately £2,005 million (at 2009/10 prices), compared with £1,960 million in the AMP4 Final Determination.

During the final year of AMP4 Anglian completed five nitrate schemes and two enhanced sludge treatment centres and provided first time sewerage to some 2,000 properties. Schemes to reduce phosphorus levels in effluent from 24 wastewater treatment works under the Habitats Directive. The company is planning to invest around £120 million in drinking water quality enhancements in AMP5, including schemes to work together with the agricultural community on ways to cut the levels of pesticides and nitrates entering rivers and aquifers in the first place.

During the year the proportion of household properties on a metered charge increased to 66 per cent (2009: 64 per cent).Anglian has also substantially completed its biggest project since privatisation at Rutland Water in March 2010, with the delivery of its Wing expansion scheme. The£116 million project combines facilities for abstraction and treatment of water, with the creation of additional wildlife habitats at the reservoir.

A strong set of financial and operational results

Commenting on the results, Peter Simpson, Anglian Water's Managing Director, said:

“The last twelve months have been particularly challenging for Anglian Water. The recession, which has affected both customers and our business, was compounded by the worst winter weather for thirty years.

“However, a focus on forward planning and finding further efficiencies within the business allowed us to deliver a strong set of financial and operational results.

“I’m particularly pleased that, despite another cold winter, we still hit our challenging targets for reducing leakage. This is the ninth year in succession we have achieved this.

“Again, despite the appalling weather conditions, we achieved 100 per cent compliance at all of our 1,100 sewage treatment works.

“And finally, our focus on service improvement has been successful and delivered a 28 per cent reduction in written complaints.

“I am extremely proud of the team at Anglian Water who have ensured that this level of performance has been maintained over the last year, despite the difficult economic situation, and extremely challenging weather conditions.

“During the year, as part of a planned succession programme, Jonson Cox relinquished his role as Chief Executive Officer. He led the company successfully through a period of significant transformation, and we are grateful for the vision and leadership he brought to the business.

“2009/10 marks the end of the five-year investment period 2005/10 (AMP4). We were one of the few companies recognised and rewarded for sustained exceptional performance throughout AMP4 in Ofwat’s Overall Performance Assessment of water companies.