NORTHUMBRIAN Water’s contribution to the profits of its new owner Cheung Kong Infrastructure has exceeded  the Chinese company’s expectations.

Cheung Kong Infrastructure, part of a consortium which paid £2.4bn for the Durham-based company last year, has said its profits rose 18% last year to £385m.

The firm said that its UK businesses, which also include EDF’s UK power grids, contributed £224m - 45% up on the previous year.

CKI's expectations.Its chairman Victor Li said the business could make further acquisitions because it had a strong cash-to-debt ratio.

“A challenging economic landscape may also create opportunities. Acquisition prospects for quality assets often arise during periods of instability. Backed by our strong financial platform, we will continue to seek acquisitions that further enhance our asset base and income stream,” he said in a statement.