AWG plans its third cashback

WATER and support services group AWG today delivered again on its pledge to return surplus cash to investors.

It unveiled a £75m share buyback - its third in three years - and set out a policy that means it will maintain dividends in real terms for the next five years.

Underlying pre-tax profit in the 12 months to the end of March was up 7% on the year to £83.3m - ahead of forecasts of £77m.

As AWG raised its dividend total for the year by 3.2% to 48.7p via a 34.3p final, chief executive Jonson Cox said he was 'very pleased' with the figures.

With turnover boosted by increases in regulated prices, operating profit at AWG's main division, Anglian Water, was up 6.4% to £339.3m.

The firm also highlighted 'significant progress' at its support services group Morrison, where operating profits jumped 27.5% to £21.8m.