Bradford-based Yorkshire Water's owner Kelda has revealed a huge growth in profits on the day it announced it was to be sold for more than £3 billion.

Bosses have agreed to sell all of its shares to a newly-founded consortium called Saltaire Water, which includes banking giant HSBC.

The group is also made up of Citigroup unit Citi Infrastructure Investors, GIC Special Investments and Infracapital Partners and has offered 1,090p in cash per share plus the right to a 10.65p interim dividend.

The announcement caused bosses to bring forward the publication of the interim results. Kelda boosted operating profits by 8.7 per cent to £184.8 million in the six month period ending on September 30.

The figures increased the interim dividend per share by 15.1 per cent and revenue levels soared to £434.9 million - 5.6 per cent up on last year.

Kevin Whiteman, chief executive of Kelda, said: "This offer is good for customers, employees and shareholders. The members of the consortium are highly credible institutions and, as investors, are taking a long-term perspective on our business with a view to continued delivery of excellent service levels to customers and opportunities for our employees."

Juan Bejar Ochoa, of the consortium, said: "Kelda has a deserved reputation for excellence in its customer service and financial performance within the UK water sector.

"It offers potential to deliver further growth and investment opportunities, and the consortium will deliver Kelda's management to ensure that Kelda's performance is maintained to the benefit of its customers and other stakeholders."

In his report to shareholders regarding the results, Mr Whiteman said that Yorkshire Water's regulated business contributed 90 per cent to Kelda's ever swelling revenues and said the group had progressed "extremely well" during the period.

Mr Whiteman said: "The increase in profitability reflects the underlying strength of the group's core business of Yorkshire Water and steady organic growth in Kelda Water Services."

Despite the promising outlook, Mr Whiteman acknowledged that flooding would impact upon the business and that it would be quantified in the firm's preliminary results, expected next year. Mr Whiteman did add that the financial impact of the flooding would mitigated by insurance.

Earlier this year, industry regulator OFWAT ranked Yorkshire Water as second best in the country.

The Kelda group was previously named Yorkshire Water and was formed following water company privatisations in 1989.

Yorkshire Water employs about 970 people in the Bradford area.