Thames Water's pre-tax profits have risen to £259.3m in 2013/14 from £144.9m in 2012/13, according its latest financial results published today.

The firm has also highlighted a very strong operational performance with leakage now down a third from 2004 after beating its annual reduction target for eighth consecutive year, together with an industry-leading drinking water compliance score of 99.99.

Total dividends paid by Thames Water Utilities Limited fell to £208.5m – down from £231.4m in 2012/13:), while the firm saw continued growth in its Regulatory Capital Value – up 6.2% to £11,569.5m. However, the utility’s gearing increased slightly to 77.6%, compared to 77.4% in 2012/13.

Thames said it was continuing to deliver on customer service - average bills remain among the lowest in the industry, while a dedicated focus to improve customer service saw written complaints fall by almost a third from last year. The company has also introduced social tariff for its most vulnerable customers a year ahead of schedule to provide a 50% discount on bills for qualifying customers. Leaks from supply pipes owned by customers make up more than a quarter of the total, so Thames now offers repairs free of charge. The firm has also committed an additional £10m to its Customer Assistance Fund to share the benefits of resolving a historic tax issue with HMRC

Investments during the year included the opening of Europe’s first phosphorous recovery plant in Slough and significant progress on major capital projects including completing the tunnelling phase of the Lee Tunnel, London’s deepest, on budget and on schedule.

Comenting on the results, Martin Baggs, chief executive of Thames Water, said:

“Thames Water’s service to our customers has improved this year; our drinking water is among the best in the world, average household bills have been kept low and we continue to make our infrastructure fit for the future with over a billion pounds of investment and upgrades. Leakage is now down a third over the past 10 years, but requires constant attention and hard work – one of the reasons why we plan to spend a record £1.4bn on improvements this year.

“The weather brought us substantial challenges, but despite demand for water reaching a 19-year high in the summer and flooding throughout much of our region in the winter, we got the network back to full operation quickly as a result of the dedication and commitment of our employees.

“We push forward into this next financial year in a strong position and with a commitment to continue to improve our customer service, which is still well below the industry average. Our focus will remain on agreeing our five-year business plan with the regulator, delivering best value and improved services for our customers and, now the Government has specified the Thames Tideway Tunnel as a priority infrastructure project, we will work towards getting the best deal for our customers and the project.”