The new chief executive of South West Water's parent company, Pennon Group, has stated that the utility must work to restore confidence after reporting a return to profitability. Keith Haslett, who assumed the role on April 1, acknowledged the need to learn from recent failings as the company posted a profit-after-tax of £92.6 million for the financial year ending March 31.
Financial Performance and Dividend
Pennon Group swung back into the black compared to a loss of £56.8 million in the previous year. The company declared a full-year dividend of £138.2 million, equating to 29.29 pence per share. This financial rebound comes despite ongoing challenges and regulatory scrutiny.
Legal and Operational Challenges
Earlier this month, Pennon was prosecuted at Exeter Magistrates' Court for supplying water unfit for human consumption, linked to a cryptosporidium outbreak in Brixham in May 2024. The firm received a record fine of nearly £2 million after pleading guilty and issuing a full apology. Additionally, Devon County Council is considering legal action over sewage discharges and poor water quality in the region.
Keith Haslett commented: "I am deeply saddened by the impact our business had on customers in the Brixham area during the 2024 cryptosporidium incident. 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 customers and communities we serve, both in Brixham and beyond."
Commitment to Improvement
Haslett emphasized his focus on driving operational improvements, enhancing communication, and delivering better performance for customers and the environment. He noted that the UK water sector is undergoing significant change, with rising expectations for environmental performance, transparency, and long-term resilience.
"Pennon is well positioned to respond and deliver for our stakeholders in this new era, with a clear strategy, strong regional businesses and a committed workforce," he added. The company aims to achieve a step change in its operations to regain public confidence.
