Cost saving measures helped British water utility Severn Trent to post more than expected increase in underlying full-year profits.

Severn Trent said that its underlying profits soared 23.7 per cent to settle at £338.4 million in the year ended March 31.

Pre-tax profits jumped from £167.6 million to £334.4 million, while sales climbed from £1.64 billion to settle at £1.7 billion during the twelve months.

Severn Trent CEO Tony Wray claimed that the firm received the maximum score for customer service in an Ofwat survey, which indicated that the firm had improved its performance to customers, despite the cost cutting.

Severn Trent accelerated efficiency programs during the last six months of previous year, spending £36.2 million on restructuring the business, which threw 275 people out of work.

The firm has plans to implement further efficiency savings that will result in more job losses. When asked if more jobs to go, Mr. Wray said, “In short, yes.” However, he declined to tell the number of further expected job cuts.

Severn Trent said that it would it would impose a one-off 10 per cent cut in its dividend payment to shareholders to meet Ofwat’s ruling that it must cut average household bills by 4 per cent in real terms by 2015.