Portsmouth Water has said it is likely that to miss its 2018/19 annual leakage target, despite being applying significant additional investment and resource.

Commenting in its unaudited interim results for the six months ended 30 September 2018, the company said it had not yet achieved the reduction targeted as part of its leakage recovery programme.

“Whilst we continue to focus significant management attention in this area, it is likely that we will miss the 2018/19 annual target, though we are committed to meeting the 5 year average target of 29.9 Ml/d.”

Portsmouth has 13 Outcome Delivery Incentives (ODIs) which apply for the current AMP6 2015-20 investment programme, nine of which have financial rewards and penalties attached. The company is in a positive position in terms of performance in all but three areas; leakage, bursts and   water quality contacts.

The number of bursts on its network increased over the summer period primarily due to the sustained period of dry weather which adversely impacted soil conditions. The utility said:

“We do not believe that this trend is indicative of an overall reduction in asset serviceability and expect to meet the overall target for the 5-year period.”

Portsmouth Water has been confirmed as having the second highest SIM score for 2017/18 and is currently ranked 2nd overall across the surveys undertaken in 2018/19 with a score of 4.53.

The firm was also ranked first (best) in the number of written complaints report by water watchdog CCWater for 2017/18.

Turnover during the six months rose slightly to £20.9 million – up from £20.1 million for the same period in 2017. Cash outflow for capital expenditure was higher than the previous half year positon - primarily due to capitalisation of mains renewals, the Havant Thicket Winter Storage Reservoir development costs and planned levels of capital activity.

The water company paid a second interim dividend of £1.8m for the year ended 31 March 18.

Plans for the development of Havant Thicket Winter Storage Reservoir were included in both the Business Plan and Water Resources Management Plan. The scheme, an enabler for increased levels of bulk water supplies to Southern Water in Hampshire, is a significant project for the company and the region, with the reservoir having an approximately 10 year planning and delivery timeline.

Portsmouth Water has invested circa £0.5m in early planning and development work in order to meet the key delivery deadline of being operational by 2029 to meet Southern Water’s increased bulk water supply demand.

As part of the AMP6 capital programme, during the period the Company renewed 7.3km of mains, together with a further 3.4km of new mains and enhancement to the network.

Chairman Mike Kirk commented:

“As we progress through the second half of the year, the business will be focused on continuing to deliver exceptional customer service, alongside the challenges of delivering against our ODI performance targets in relation to leakage reduction and water quality contacts.”

“We will continue to see a focus on cost reduction and efficiency savings to offset other cost pressures seen in the business.”