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Castle Water, the UK’s most trusted water retailer, is pleased to announce its financial and operating results for the year ended 31 March 2024.

The results reflect a record year of achievement for the Group, driven by our mission to revolutionise the water service industry by setting new standards for quality and service reliability, and come as the Group celebrates its ten-year anniversary.  

Financial highlights

  • Marginal reduction in Group revenue by 0.4% to £434.4m (2023: £436.0m), principally due to withdrawal from some low margin public sector contracts
  • Gross profit increased by 11.5% to £47.5m in the year (2023: £42.6m), driven by a continued commitment to target profitable customer acquisition and retention
  • Adjusted EBITDA up 43% to £15.m (2023: £10.6m), which, alongside strong cash generation, reflects continued investment in operational improvements and functional cohesion
  • Robust cash generation has driven a reduction in net debt of 11.9% in the year to £65.9m (2023: £74.9m). Closing cash was strong at £34.5m (2023: £20.9m)

Operational Highlights

  • Leading Market Performance Standards (‘MPS’) score of 97.9% (2023: 97.0%) with the Group completing more metering tasks on time than any other retailer
  • Trustpilot score of 4.5 stars, well above the industry average, with more 5-star Trustpilot reviews than all other water retailers combined
  • Paperless billing increased 50.9% in the period, as the Group continues to leverage technology to streamline operations and simplify customer interactions to help customers save water, save money, and save time
  • Employee-retention rate of 75.1% (2023: 64.8%) supports strong results from the Group’s 2023-2024 employee engagement survey and highlights the continued focus on fostering a collaborative and supportive culture
  • The Group remains on track to meet Net Zero targets by 2030, reflecting the continued commitment to sustainability and corporate responsibility as a cornerstone of its strategy

Outlook

  • The Group’s strong financial performance and continued growth in adjusted EBITDA means it is well positioned to continue this growth trajectory in 2025
  • The Group’s focus on pioneering development, including the investment in technology and customer service platforms made to date, is set to further boost its delivery of outstanding service to customers in the year ahead
  • The Group remains confident that its market-leading initiatives, together with a continued dedication to sustainable growth, provides a platform to further enhance its position within the industry and for long-term success

As we celebrate our tenth anniversary as the UK's leading independent water retailer, I am delighted to report another year of significant financial and operational progress. Our strong business development performance, alongside continued investment in operational improvements and functional cohesion, has seen robust growth in gross profit, adjusted EBITDA growth of over 40%, and strong cash generation in the year.

We continue to be driven by our commitment to innovation and excellent service. Our analysis of customer interactions this year has led to a deeper understanding of our customers' needs, enhanced our capabilities and enabled more efficient processes. When coupled with our commitment to leveraging technology and expertise to further refine our processes and interactions, the result is a further boost to our delivery of outstanding service to our customers.

Against a complex and changing regulatory and market backdrop, this solid performance makes us well positioned to capitalize on opportunities as they arise and poised for continued growth in the years ahead. I would like to thank our dedicated staff, loyal customers, and all our stakeholders for their continued support. Your trust and partnership propel us forward, and together, we are setting new standards for excellence in the water retail industry.

John Reynolds OBE, CEO of Castle Water

For further information, contact:

David Bain
David.Bain@castlewater.co.uk
07798637099

About Castle Water

Castle Water is the UK’s largest independent business water retailer, providing extensive water and wastewater services to over 450,000 supply points for businesses, charities, and public bodies throughout England and Scotland.

It began with a clear mission and a small, dedicated team. A decade later, Castle Water has grown to over 450 professionals, each committed to its core values of integrity, transparency, and fairness. Its team thrives in a culture of collaboration and trust, where a proactive approach to problem-solving drives the Group’s success.

Today, Castle Water is trusted by over 250,000 UK customers to provide better business water services to businesses of all sizes, from large multi-site customers with complex needs to SMEs, start-ups, and sole traders.

As the Group continues to grow, it remains at the forefront of the UK water market, focused on providing all customers with award-winning customer service.