Results for the half year show operating profit decreased by £4.7m from £84.3m to £79.6m, while profit after taxation fell from £33.0m to a loss after taxation of £67.8m.
Total turnover increased by £5.6m from £254.3m to £259.9m. Regulated tariff turnover increased by £7.6m, mainly due to price rises allowed by Ofwat combined with a return to normal operating patterns for Household and Non Household revenues as Covid-19 impacts reduce. Operational costs (excluding depreciation and amortisation) increased by £5.7m from £108.3m to £114.0m. There were upward pressures on costs due to general inflation, new obligations, power costs and Covid -19, all partially offset by on-going efficiency programmes. Depreciation and amortisation increased by £4.6m from £61.7m to £66.3m as a result of assets being depreciated for the first time.
Net interest payable reduced by £1.3m from £42.1m to £40.8m. Interest payable fell by £1.8m because of reduced interest rates on new loans. There was a £0.4m increase in the interest costs relating to IAS 19 pension accounting whilst interest receivable was £0.1m less than last year.Total taxation, including deferred tax, increased substantially from £9.2m last year to £106.6m this year. This mainly reflects the UK Budget announcement on 3 March 2021 increasing the statutory rate of corporation tax from 19% to 25% effective from 1 April 2023 which was substantially enacted on 24 May 2021. This resulted in a £96.9m charge to the income statement for deferred tax and £38.4m charged in Other Comprehensive Income. Tax paid reduced by £6.1m from £8.9m to £2.8m due to the availability of the super deduction for capital expenditure.
Dividends declared for the six months to 30 September 2021 were £35.5m, an increase from £25.0m for the same period last year.
Gross capital investment for the six months was £126.0m, an increase on £115.9m last year which is consistent with the timing of the construction programme for the current regulatory period.
Cash and cash equivalents reduced by £57.7m from £68.9m to £11.2m in the six months to 30 September 2021. The net cash inflow from operating activities was £126.1m plus cash inflows from investment activities of £168.3m less net cash outflows from financing of £352.1m.