Home Business News South East Water blasted for £2.4 million dividend payout

South East Water blasted for £2.4 million dividend payout

by LLB Finance Reporter
7th Dec 23 4:23 pm

Despite losses and a £3 million cost from heatwaves and supply interruptions, South East Water has dished out £2.3 million in dividends to investors.

In the six months to 30 September the water company reported pre-tax losses of £18.1 million compared to £12.7 million the previous year.

According to the watchdog Ofwat, South East Water is the worst performing for water supply disruptions in England and Wales.

In their half year results costs surged and water interruptions which saw the company pay £3 million, plus £1.5 million in compensation and then £700,000 on bottled water for their customers.

The company has a £1.4 billion debt pile with costs edging higher by £7.4 million to £54.8 million due to higher interest rates due to inflation.

In November an Ofwat investigation found that “too many customer have been failed too often,” by South East Water.

Announcing their results the company said, “Unprecedented extreme weather events were the cause of the majority of supply interruptions, but we appreciate that problems experienced by our customers will result in lower levels of customer satisfaction.

“We are deeply sorry to customers who have been affected by supply interruptions and continue to work tirelessly to recover.

“We have 52 teams actively repairing leaks, and 40 technicians proactively looking for them.”

The GMB Union blasted the company, Gary Carter, GMB National Officer, said, “People are utterly sick of hearing about failing water companies stumping up fortunes in dividends.

“OFWAT and the Government must put an end to the water sector’s out of control payout culture.

“This money needs to be spent investing in infrastructure to reduce sewage spills and clean up the country’s rivers, before shareholders get their piece of the pie.

“For too long money has been flowing out and debts have been piling up. It must stop.”

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