Affinity Water has published its 2026 annual results — the first full AMP8 reporting period. Revenue rose to £438.3m and operating profit to £74.1m. Strong financial performance confirms the capital deployment capacity suppliers need to see before committing resource to Affinity's supply chain.
The 2026 results cover Affinity Water's first full year operating within the AMP8 regulatory period. The revenue increase from £363.6m to £438.3m reflects the Ofwat-approved bill increase that took effect from April 2025 — the PR24 determination allowed Affinity Water to increase charges in order to fund its £2.3bn investment programme.
The more significant number for supply chain observers is the operating profit improvement: from £33.2m to £74.1m. This represents a more than doubling of operating profitability in the first AMP8 year — a signal that the new regulatory settlement is providing the financial headroom Affinity Water needs to fund its capital programme without financial distress.
For suppliers and contractors assessing whether to prioritise Affinity Water opportunities, strong operating performance in year one is a positive indicator. It suggests the company has the financial capacity to continue deploying capital at the pace its AMP8 programme requires — and that payment risk is lower than it would be for a financially stressed utility.
Affinity Water confirmed in its results announcement that AMP8 capital delivery has begun across the supply area. The six Tier 1 framework holders — Barhale, Galliford Try, J Browne, Stonbury, United Living and United Infrastructure — are active. The £900m capital delivery framework (covering both AMP8 and AMP9) is now in its delivery phase.
For Tier 2 and Tier 3 suppliers, this is the signal to engage. Framework holders are building their subcontract supply chains now, for works that will run through to 2030 and beyond. The window to establish a supply chain position is not indefinite — framework holders will progressively lock in their preferred supply chain partners as the programme scales up.
Affinity Water has built a strong financial platform for its AMP8 programme. Two capital-raising events in the past 18 months have provided significant liquidity beyond operating cashflows:
The combination of regulatory revenue growth, operating profit improvement and these two capital-raising events means Affinity Water enters the remainder of AMP8 with strong financial headroom. The supply chain implication is straightforward: the money to pay for the programme is in place.
Supply Chain SignalStrong year-one financial results combined with confirmed equity and bond financing mean Affinity Water has the resources to execute its £2.3bn AMP8 programme. Payment risk is low. Framework holders are active. Now is the time to establish Tier 2 supply chain positions.
Affinity Water's supply area in Hertfordshire, Bedfordshire and Buckinghamshire is classified as seriously water stressed. The AMP8 programme investment priorities reflect this:
Specialist capabilities in smart metering installation, leak detection, environmental services and water treatment plant works are in active demand from Affinity Water's framework holders. These are the Tier 2 and Tier 3 subcontract opportunities most immediately available.
With strong year-one results confirmed, Affinity Water will move into the higher-spend years of its AMP8 programme. Capital investment programmes typically back-load delivery — early years involve programme set-up, framework establishment and early works, while years two through five see the main delivery spend. Suppliers who establish supply chain positions now will be best placed for the larger works volumes expected in 2027 and beyond.
Watch for further framework announcements from Affinity Water throughout AMP8, including any additional specialist frameworks beyond the main capital delivery appointment.
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