en.Wedoany.com Reported - Anglian Water delivered strong financial results for 2024/25, with revenue and profit growth supporting business delivery and future investment.
Revenue increased by £354 million, driven primarily by two factors: the annual price increase set under the Ofwat PR24 final determination, and higher consumption year-on-year due to prolonged above-average temperatures in 2025, which contributed £21 million.
Total capital expenditure grew by 5.1%, from £1.081 billion to £1.136 billion, an increase of £54.9 million. Compared to the first year of AMP7, expenditure has doubled from £448 million. Capital investment represented 178% of operating profit and 112% of operating cash flow, demonstrating the scale of reinvestment to improve services and infrastructure.
Under the deleveraging plan, gearing fell from 71.2% to 69.7%, driven by strong RCV growth and a £170 million equity injection from the group. Following the decision to defer the 2024/25 dividend, a £75 million dividend was paid in December 2025. Under the dividend policy, the Board has proposed a 2025/26 dividend of £90 million, payable in June 2026.
Commenting on the results, Chief Executive Mark Thurston said this was a year of repositioning, mobilisation, and refocusing for the company as it delivered its most ambitious investment plan ever and strengthened the business for the years ahead. The plan reflects the long-term responsibility to provide resilient water and wastewater services, support communities, protect the environment, and drive sustainable growth in the region, ultimately fulfilling the company's purpose—to bring environmental and social prosperity to the communities it serves.
The company made a strong start to AMP8, delivering capital investment of £1.1 billion (2024/25: £1.08 billion) and launching over 1,100 new schemes and projects within the first year. While the first year is typically a period of mobilisation rather than peak construction, it laid the foundation for accelerated delivery in the years ahead.
During the year, Anglian Water undertook over 1,100 capital projects, more than double the average annual delivery volume of AMP7 (2025-2030). Highlights included: constructing 140.5 km of new water mains to enhance network resilience; installing over 316,000 smart meters to help customers manage water use and detect leaks early; and advancing major infrastructure projects, including strategic interconnecting pipelines, with customers in the Ipswich and Colchester areas already benefiting from the new network.
In terms of performance commitments, the company met some but not all levels. On outcome delivery incentives, as of the end of the first year of AMP8, the company reported a net penalty of £10.5 million, comprising £52.86 million in rewards and £63.36 million in penalties. The net result was a significant improvement over the prior year (net penalty of £41.5 million in 22/23 prices). The year-end ODI position saw rewards in several areas, including storm overflows, sewer flooding, unplanned outages, bathing water quality, biodiversity, customer experience, and business demand.
The focus on operational resilience and environmental compliance drove a reduction in total pollution incidents, the best-ever performance on storm overflows, and record regional bathing water quality. Total pollution incidents fell by 66 to 371 (2024: 437). However, the company was disappointed that serious pollution incidents increased from 7 (2024) to 12 (2025).
Looking ahead, the company will continue to invest rapidly to secure water supplies, protect the environment, and support regional growth through new reservoirs, pipeline expansions, and long-term environmental improvements. In May 2026, the company submitted a cost change reopening proposal to Ofwat, involving approximately £345 million in additional investment during AMP8, focused on improving long-term asset health and supporting regional economic growth. The proposed investment will support service resilience and significant additional growth planned for AMP8 and beyond. The company stated that since submitting its PR24 business plan, much of this growth has accelerated due to government policy and planning decisions, reinforcing the need for targeted additional investment. Anglian Water will continue to work with Ofwat on the proposals, with a draft response expected in August and a final decision anticipated before the end of the year. These proposals are subject to Ofwat resolving concerns regarding RCV and revenue treatment and timing.
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