(Sharecast News) - Pennon said on Wednesday that it swung to a full-year profit, as it conceded that it needs to "rebuild trust" following a parasitic outbreak in Devon.
In the year to the end of March, the South West Water owner swung to a statutory pre-tax profit of £114m from a loss of £72.7m the year before. The underlying pre-tax profit was £135.1m, versus a loss of £35.1m a year earlier.

Revenue rose to £1.3bn from £1.0bn and underlying earnings before interest, tax, depreciation and amortisation grew 55% to £519.2m.

Pennon said water revenue rose by 24.6%, mainly driven by the benefit of increased regulatory allowances and higher consumption. "This uplift reflects revised tariff structures and enhanced service obligations under the regulatory framework, supporting our long-term investment and service delivery plans," it said.

Chief executive Keith Haslett said: "I am delighted to have started my tenure as chief executive at Pennon, at what is an important moment both for the group and for the wider UK water sector.

"As Pennon enters a new era under my leadership, it does so on the back of a return to profitability and the mobilisation of our AMP8 investment plan. However, it is clear that there is more work to do, and improving operational discipline and capital delivery will be important to meet the commitments we have made and the standards we aspire to achieve in the future.

"Focusing on operational excellence, driving a performance culture and delivering through technology and innovation will be my key priorities, to improve performance for our customers and the communities we serve."

The new CEO also conceded that the company must "work hard to rebuild trust" after being hit with a £1.9m fine for a parasitic outbreak in its water supply in Devon in 2024.

"Whilst I have only been CEO for a few weeks, it is very clear that we must learn lessons from this incident and work hard to rebuild trust with the customer and communities we serve, both in Brixham and beyond," Haslett said.

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