Profits at Severn Trent fell because of the cost of last year’s floods and fines paid to the water regulator for misreporting data, but underlying earnings rose 16 per cent.

Pennon jumps to £150m

Pennon reported a 14 per cent increase in annual pre-tax profits to £150m after strong performances by its South West Water and Viridor waste divisions, writes Rebecca Bream.

Group revenues rose 17 per cent to £875m. South West Water benefited from a rise in water bills and Viridor’s contribution grew thanks to new waste contracts and an expansion of its renewable energy business.

Colin Drummond, chief executive of Viridor, said both types of generation were economic at current electricity prices

Sales at the water and sewerage group rose 5 per cent to £1.56bn for the year ending March 31, thanks largely to bill increases allowed by regulator Ofwat.