INVESTMENT

Thames Water’s profits have crashed 86 per cent after a year of “challenges” that saw it miss leak targets for the first time in 11 years and face a record fine for sewage pollution.

Britain’s biggest water company saw pre-tax profits slump to £71.1 million for the year to 31 March from £511.2m the previous year as it was impacted by higher costs and losses on the value of its own debt.

Underlying operating profits also fell sharply, down to £605m from £742.2m. Despite this, £100m in dividends was paid to its international roster of shareholders shortly before it was hit with a record £20m fine in March for allowing 1.4 billion litres of raw sewage into the River Thames between 2012 to 2014.

The firm said it missed its target for cutting leaks by 47 million litres a day after a series of high-profile burst water pipes in London last year.

Meanwhile, its annual report revealed that recently hired chief executive Steve Robertson picked up a £54,000 annual bonus in spite of the gloomy set of results.

0 Thames revealed that it caused 315 pollution incidents in 2016

CEO STEVE ROBERTSON

His total pay stood at £460,000, including the bonus and a pro-rated £550,000 annual salary after taking on the top job in September.

Thames Water revealed that it caused 315 pollution incidents in 2016, higher than last year, but below its 340 target.

The group added that it received an £8.6m regulatory penalty in relation to missed leak targets.

Robertson said that while there were challenges in the year, the business’s underlying performance “was sound and we will continue to invest to achieve operational and customer service excellence.

“We are committed to investing an industry-leading £20m a week to meet our challenging targets, always thinking of the long term.

“Recognising that additional investment is required in some critical areas, we’ll spend in excess of £150m between now and 2020, above our original plans, to replace more ‘trunk’ mains, reduce leakage, improve some of our oldest sewers and upgrade the

“We are committed to investing an industryleading £20m a week to meet our challenging targets, always thinking of the long-term”