Bristol Water has reported pre-tax profits of £18.4 million, as a hefty 72 per cent rise in returns buoyed the bottom line.
The growth occurred despite a series of unforeseen expenses as a result of its recent restructuring, although the firm has stressed it will continue to look for further savings and tackle its debt.
The firm, which is part of the Bristol Water Group that was bought out by Sociedad General de Aguas de Barcelona, revealed it would be closing one of its laboratories and making redundancies as a result.
However, with profits after tax rising from £9.1 million in 2005 to £11.6 million, the chairman, Moger Woolley, sounded a positive note and said no more job cuts were in the pipeline.
Mr Woolley was also at pains to highlight the firm's success in improving its service.
"Levels of service to customers remain extremely high, as reflected in the Ofwat's assessment of levels of service and customer surveys," he said.
He added: "The company has met its Ofwat-approved leakage target in each year since targets were introduced."
Bristol Water says it has no plans to impose water restrictions and said it was pleased with its performance in this regard amid widespread publicity about drought conditions.