Full Year Results 2025/26

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Bristol Water PLC reported a profit after tax of £0.1 million for the year ended 31 March 2026, a significant improvement from a loss of £0.4 million in the prior year, with earnings per share rising to 1.67p from a loss of 6.67p. The company's financial performance is primarily driven by interest income from its parent company, South West Water Limited, which fully supports its obligations related to preference shares, debentures, and its pension asset. Total assets increased to £39.7 million from £37.2 million, while net assets grew to £25.1 million from £23.0 million, reflecting a substantial actuarial gain on its retirement benefit surplus. The company has no proposed dividend for the year.

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BRISTOL WATER PLC (BWRA)

UK 100

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	2025/26	2024/25
Profit/(loss) after tax	£0.1m	£(0.4)m


Earnings per share
Profit/(loss) per share	1.67p	(6.67p)

		2026	2025
	Notes	£m	£m

Operating costs	4	(0.7)	(1.2)
Total net operating costs		(0.7)	(1.2)

Operating loss		(0.7)	(1.2)

Interest payable and similar charges	5	(1.1)	(1.1)
Interest receivable and similar income	5	2.4	2.1
Total net interest receivable and similar income	5	1.3	1.0

Profit/(loss) before tax		0.6	(0.2)

Taxation on profit/(loss) on ordinary activities	6	(0.5)	(0.2)

Profit/(loss) for the financial year		0.1	(0.4)


Profit/(loss) per ordinary share	7	1.67p	(6.67p)

		2026	2025
	Notes	£m	£m

Profit/(loss) for the financial year		0.1	(0.4)

Other comprehensive income:
Items that will not be reclassified to profit and loss
Actuarial gain on retirement benefit surplus	9	2.7	0.1
Remeasurement of defined benefit pension scheme restriction	9	(0.7)	0.1

Other comprehensive income for the year, net of tax		2.0	0.2
Total comprehensive profit/(loss) for the year		2.1	(0.2)

		2026	2025
	Notes	£m	£m

Non-current assets
Other receivables	8	26.6	26.6
		26.6	26.6

Current assets
Retirement benefit surplus	9	11.4	9.2
Trade and other receivables		-	0.8
Current tax asset		-	0.3
Cash and cash equivalents		1.7	0.3
		13.1	10.6

Total assets		39.7	37.2


Non-current liabilities
Borrowings	10	(1.6)	(1.6)
8.75% irredeemable cumulative preference shares	10	(12.5)	(12.5)
		(14.1)	(14.1)

Current liabilities
Trade and other payables		(0.1)	(0.1)
Current tax liabilities		(0.4)	-
		(0.5)	(0.1)

Total liabilities		(14.6)	(14.2)


Net assets		25.1	23.0

Equity
Called-up share capital		6.0	6.0
Share premium account		4.4	4.4
Other reserves		5.8	5.8
Retained earnings		8.9	6.8

Total Equity		25.1	23.0


		Called-up share capital	Share premium account	Capital redemption reserve	Retained earnings	Total

		£m	£m	£m	£m	£m

Balance at 1 April 2024		6.0	4.4	5.8	7.0	23.2

Loss for the year		-	-	-	(0.4)	(0.4)

Other comprehensive income for the year:
	Remeasurement of defined benefit pension scheme	-	-	-	0.2	0.2

Total comprehensive loss for the year		-	-	-	(0.2)	(0.2)

Balance as at 31 March 2025		6.0	4.4	5.8	6.8	23.0


Balance as at 1 April 2025		6.0	4.4	5.8	6.8	23.0

Profit for the year		-	-	-	0.1	0.1
Other comprehensive income for the year:
	Remeasurement of defined benefit pension scheme	-	-	-	2.0	2.0

Total comprehensive income for the year		-	-	-	2.1	2.1

Balance as at 31 March 2026		6.0	4.4	5.8	8.9	25.1

NOTES TO THE FINANCIAL STATEMENTS

1	GENERAL INFORMATION Bristol Water plc is a public company, limited by shares, with irredeemable preference shares and debenture stock listed on the London Stock Exchange. The Company is incorporated and domiciled in England, United Kingdom. The address of its registered office is Bridgwater Road, Bristol, BS13 7AT, England. The financial information for the year ended 31 March 2026 does not constitute statutory accounts within the meaning of section 435 of the Companies Act 2006. The statutory accounts for the year ended 31 March 2026 will be finalised on the basis of the financial information presented by the Directors in this announcement and will be delivered to the Registrar of Companies in due course.

2	BASIS OF PREPARATION
	The financial statements of the Company are prepared on a historical cost basis in accordance with Financial Reporting Standard 101, 'Reduced Disclosure Framework - Disclosure exemptions from EU-adopted IFRS for qualifying entities' ("FRS 101") and with the provisions of the Companies Act 2006. The preparation of financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company's accounting policies. The accounting policies adopted have not changed significantly from those adopted in the Company's 2025 Annual Report and Financial Statements (which are available on the Company's website www.bristolwater.co.uk). New standards and interpretations not yet adopted New standards or interpretations which were mandatory for the first time in the year beginning 1 April 2025 did not have a material impact on the net assets of the Company. New standards or interpretations due to be adopted from 1 April 2026 are not expected to have a material impact on the Company's net assets or results.

3	GOING CONCERN The Company's obligations are met from matching intra-group contracted assets and related receipts. The Company has received confirmation from Pennon Group plc that it will provide support to the Company should it be required, to meet its liabilities as they fall due for the period which covers the period from approval of the 2026 financial statements through to 9 June 2027. The Company therefore continues to adopt the going concern basis in preparing its financial statements. Further information on the Company's borrowings is given in note 10.

4	OPERATING COSTS
	(a) Operating costs include:
			2026	2025
			£m	£m

		Other charges	0.7	1.2
		Total operating costs	0.7	1.2

	The average number of employees during the year was nil. None of the directors received any additional remuneration or benefits for their services to this Company and therefore the directors' emoluments were £nil.
	(b)	Independent auditors' remuneration
	During the year the Company obtained the following services from the Company's auditors and its associates:
			2026	2025
			£m	£m

	Fees payable for the audit of the Company's annual statutory financial statement		0.1	0.1

5			NET INTEREST RECEIVABLE AND SIMILAR INCOME
									2026			2025
									£m			£m
			Interest receivable and similar income relate to:

			Interest income in respect of retirement benefit scheme (note 9)						0.8			0.6
			Interest income on intercompany loans						1.6			1.5
									2.4			2.1
			Less interest payable and similar charges:

			Dividends on 8.75% irredeemable cumulative preference shares						(1.1)			(1.1)
									(1.1)			(1.1)

			Total net interest receivable and similar income						1.3			1.0

			Dividends on the 8.75% irredeemable cumulative preference shares are payable at a fixed rate of 4.375% on 1 April and 1 October each year. Payment by the Company to the share registrars is made two business days earlier. The payments are classified as interest in accordance with IFRS 9.

6	TAXATION
								2026		2025
								£m		£m
	Tax expense included in Income Statement

	Current tax:
					Corporation tax on profit/(loss) for the year			0.5		0.2
	Total current tax							0.5		0.2


	Tax expense on profit/(loss)							0.5		0.2


	UK corporation tax is calculated at 25% (2024/25:25%) of the estimated assessable profit for the year.
	Reconciliation of the tax on profit on ordinary activities
	The tax charge for the year differs from the theoretical amount which would arise using the standard rate of corporation tax in the UK of 25% (2024/25: 25%), as follows:
								2026		2025
								£m		£m
	Profit/(loss) before tax							0.6		(0.2)

	At statutory income tax rate of 25% (2025: 25%)							-		-

	Non-deductible expenses for tax purposes:
				8.75% irredeemable cumulative preference share				0.5		0.2
	Total taxation expense included in income statement							0.5		0.2


7		EARNINGS/(LOSS) PER ORDINARY SHARE
							2026				2025
							m				m
		Basic profit/(loss) per ordinary share have been calculated as follows:
						Profit attributable to ordinary shares	£0.1				£(0.4)
						Weighted average number of ordinary shares	6.0				6.0
							1.67p				(6.67p)

		As the Company has no obligation to issue further shares, disclosure of earnings per share on a fully diluted basis is not relevant.

8	OTHER RECEIVABLES
	Other receivables comprise loan notes issued to the Company on 1 February 2023 by South West Water Limited (SWW).

		Fixed interest rate	Principal outstanding
			2026	2025
	£25,000,000 fixed rate loan note	6%	25.0	25.0
	£1,405,218 fixed rate loan note	4%	1.4	1.4
	£72,900 fixed rate loan note	3.5%	0.1	0.1
	£54,875 fixed rate loan note	4%	0.1	0.1
	£36,740 fixed rate loan note	4.25%	-	-
			26.6	26.6

	The amounts included above relate to loan notes issued on 1 February 2023 by SWW to the Company. The loan notes reflect the external borrowings held by the Company and as such any maturity dates are linked to the maturity of these external borrowings. All loan notes are unsecured. No expected credit loss provision has been recognised in respect of amounts owed by group undertakings.

9		RETIREMENT BENEFIT SURPLUS
		Defined benefit scheme Pension arrangements for former employees have historically been provided through the Company's membership of the Water Companies' Pension Scheme (WCPS), which provides defined benefits based on final pensionable pay. The Company's membership of WCPS is through a separate section of the scheme. The gross pension surplus of £15.2m at 31 March 2026 (31 March 2025 £12.3m) relates to the market value of assets still held by the scheme. The planned buy-out of the Section was completed on 11 July 2025 and the process to wind up the scheme continues. The section's assets and liabilities were remeasured prior to settlement using actuarial assumptions at this date. The assets and liabilities were both reduced by £92.8 million resulting in a net £nil income statement settlement charge. An actuarial gain of £2.7 million was recognised in other comprehensive income for the period 1 April 2025 to 11 Jul 2025.

		Basis of valuation The formal actuarial valuation of the Company's section of the WCPS as at 31 March 2017 was updated to 31 March 2026, by an independent actuary Lane, Clarke & Peacock, "LCP", using the following major assumptions in accordance with IAS 19 'Employee Benefits':

			2026	2025
	Assumptions: RPI Inflation CPI Inflation Discount rate		3.0% 2.4% 5.6%	3.1% 2.5% 5.8%

Assumptions regarding future mortality are set based on actuarial advice in accordance with published statistics and experience in the UK. These assumptions translate into the following average life expectancies in years:
		2026	2025
Life expectancy at age 60 at the balance sheet date
-	Men	-	26.8
-	Women	-	29.3
Life expectancy at age 60, 25 years from balance sheet date
-	Men	-	29.3
-	Women	-	31.2


9	RETIREMENT BENEFIT SURPLUS (continued)
		Reconciliation of scheme assets and liabilities:
						Assets	Liabilities		Total
						£m	£m		£m

		Pension scheme surplus at 1 April 2024				120.4	(107.7)		12.7

		Section expenses				(1.2)	-		(1.2)
		Interest income (note 5)				5.6	(5.0)		0.6

		Remeasurements:
				Return on plan assets, excluding amounts included in interest income		(12.6)	-		(12.6)
				Changes in financial assumptions		-	11.9		11.9
				Changes in demographic assumption Experience adjustments on obligation		-	1.4 (0.5)		1.4 (0.5)
						(12.6)	12.8		0.2

		Benefits paid				(8.2)	8.2		-

		Pension scheme surplus at 31 March 2025				104.0	(91.7)		12.3

						Assets	Liabilities		Total
						£m	£m		£m

		Pension scheme surplus at 1 April 2025				104.0	(91.7)		12.3

		Section expenses				(0.6)	-		(0.6)
		Interest income (note 5)				2.2	(1.4)		0.8
		Past service cost, curtailments and gains/losses on settlements				(92.8)	92.8		-

		Remeasurements:
					Return on plan assets, excluding amounts included in interest income	4.7	-		4.7
					Changes in financial assumptions	-	(0.8)		(0.8)
					Changes in demographic assumption	-	-		-
					Experience adjustments on obligation	-	(1.2)		(1.2)
						4.7	(2.0)		2.7

		Benefits paid				(2.3)	2.3		-

		Pension scheme surplus at 31 March 2026				15.2	-		15.2

							2026	2025
			Total amount recognised on the statement of financial position:				£m	£m
			Fair value of plan assets				15.2	104.0
			Pension scheme obligation				-	(91.7)
			Pension scheme surplus				15.2	12.3
			Less: restriction of surplus				(3.8)	(3.1)
			Net pension scheme surplus				11.4	9.2

9 RETIREMENT BENEFIT SURPLUS (continued)
	Total cost recognised as (income) / expense:

		2026	2025
		£m	£m
	Interest income (note 5)
	Section expenses	(0.8)	(0.6)
		0.6	1.2
		(0.2)	0.6

The market value of the plan assets was:
	2026				2025
	Quoted	Unquoted	2026	%	Quoted	Unquoted	2025	%
	£m	£m	£m		£m	£m	£m

Liquidity funds	-	14.6	14.6	96	-	12.4	12.4	12
Insurance policy	-	-	-	-	-	91.2	91.2	88
Cash	-	0.6	0.6	4	-	0.4	0.4	-
	-	15.2	15.2	100	-	104.0	104.0	100


The return on the plan assets was:	2026	2025
	£m	£m
Interest income	2.2	5.6
Remeasurements	4.7	(12.6)
Total return on plan assets	6.9	(7.0)

11 COMMITMENTS

The Company had no commitments at 31 March 2026 (2025: £nil).
12	ULTIMATE PARENT COMPANY AND CONTROLLING PARTY
	As at 31 March 2025 and 31 March 2026 the immediate parent company for this entity was SWW. As at 31 March 2025 and 31 March 2026 the Directors considered the ultimate parent and controlling party to be Pennon Group plc. The smallest and largest group in which the Company is consolidated is Pennon Group plc which is registered in England and copies of its consolidated annual report and accounts are available from Peninsula House, Rydon Lane, Exeter, Devon, England, EX2 7HR.
13	RELATED PARTY TRANSACTIONS
	Throughout the year, related parties included members and joint ventures of the Pennon Group plc group of companies and key management personnel. The Company has taken advantage of the exemptions with FRS 101 and not disclosed transactions with other wholly owned group undertakings. Interest received from related parties are disclosed in note 5 above.

Full Year Results 2025/26

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