Water firm hails leak performance

Thames Water has 13 million customers

A water company branded the "leakiest" in the UK by the industry watchdog said it has improved its performance.

Thames Water announced on Thursday operating profits had risen 34% from £439.1m to £590.1m in its report for the year ending 31 March 2008.

It also said it was on target to meet the annual leakage target agreed with Ofwat for a second consecutive year.

Chairman Sir Peter Mason said the result reflected the company's work on replacing ancient and worn-out pipes.

He added: "These are good results for the company.

"The quality of the water we supply to our customers is at an all time high, we have hit a second successive leakage target, and our sewage treatment works are 100% compliant for the first time ever.

"This level of performance has been delivered with major improvements in efficiency."

The report also said all 349 Thames Water sewage treatment works were meeting environmental guidelines, while one conviction for pollution was down from eight incidents in 2006/7.