Pennon Group, the parent company of South West Water, has posted a pre-tax loss of £35.1m in its latest full-year results.

The water company was hit by “exceptional costs” totalling £37.6m in the year, around £21m of which was in relation to a parasite outbreak in the drinking water supplied to Brixham in Devon.

Pennon, which has swung to a loss after posting a £16.8m pre-tax profit last year, said it was expecting to return to profitability in 2025/26, after posting a rise in revenue in its latest figures.

The group’s full year trading results, covering the year to 31 March, revealed an underlying revenue of £1.05bn for 2024/25, up from £907.8m in 2023/24.

Pennon CEO, Susan Davy, commented that the group had delivered a “resilient operational performance” during a “demanding year”.

“We have reshaped and reset the cost base, delivered record levels of capital investment and – following a successful rights issue – maintained a strong balance sheet,” Davy added.

“We are listening to our customers, who are quite rightly demanding water companies to do more for customers today and to step up investment for the future. We are doing both. We have worked diligently to help customers use less water and save more money with a range of campaigns and pilots.

“At the same time, our record year for investment has improved services that matter most to our customers. Whilst this has impacted profitability this year, it has been the right thing to do.”

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