Water management and retailer Wave has announced a significant increase in revenue, surpassing £555 million for the year ending March. This impressive growth is largely attributed to the company’s strong performance and continued partnerships within the public sector. Despite a dip in operating profits, Wave has seen its total shareholder funds grow and has reduced its loans and borrowings.
Key takeaways
- Wave’s revenue climbed to nearly £555m, up from £495.5m.
- Public sector contracts were a primary driver of this growth.
- Operating profits saw a slight decrease from £13.1m to £11.1m.
- Total shareholder funds increased to £64.8m.
- Employee numbers rose to 331, with growth concentrated in operations.
Public sector partnerships fuel financial growth
The Durham-based firm, which is part-owned by Northumbrian Water, specialises in helping businesses and councils reduce water consumption and lower bills. The latest financial reports show revenues reaching nearly £555 million, a notable increase from the previous year’s £495.5 million. This expansion has been significantly bolstered by Wave’s success in securing and renewing public sector frameworks.
Financial performance and strategic investments
While revenues soared, operating profits experienced a slight decrease, falling from £13.1 million to £11.1 million. However, the company’s financial health remains robust, with total shareholder funds growing from £58.7 million to £64.8 million. Wave has also made substantial progress in reducing its debt, with a £22 million decrease in loans and borrowings as it repays long-term loans to shareholders from the joint venture’s inception in 2017. The company confirmed it is generating sufficient cash to fund operations and meet repayment obligations.
Wave attributes its profitability to factors including changes in Ofwat’s Retail Exit Code, which allowed for increased price caps, and wholesale price hikes. Beyond financial metrics, the company highlighted achievements in its social and sustainability initiatives, overall customer growth, and improved customer retention rates.
Innovation and future outlook
Ken Main, chief financial officer at Wave, expressed pride in the company’s strong financial performance, attributing it to robust governance and a focus on sustainable growth. He emphasised Wave’s commitment to supporting customers and fostering innovation. The company is actively pursuing negotiated contracts and promoting water efficiency services to help clients reduce bills and consumption, aligning with broader industry water reduction targets.
Further underscoring its commitment to innovation, Wave recently acquired the intellectual property, patents, and assets of Cambridgeshire-based water-sensing technology specialist Infersens. This strategic move is expected to accelerate Wave’s ability to offer smart, scalable solutions for water efficiency. CEO Lucy Darch stated that Infersens’ technology perfectly aligns with Wave’s mission to help businesses use water more efficiently and safely.
Wave’s achievements were further recognised when it won the Water Retailer of the Year title at the 2025 Water Industry Awards, marking the third time the North East business has received this accolade. The company has set an ambitious target to save customers 19 million m3 of water by 2030.
Sources
- Wave hails revenue growth as public sector work drives success, Business Live.
