Annual report shows strong growth and major investment, but underlying figures reveal a more complex picture

THE PORT OF MILFORD HAVEN has reported another year of growth, investment and strong trading performance, with rising cargo volumes, record turnover and major spending on infrastructure across the Haven Waterway.

The Port’s 2025 Annual Report shows gross tonnage rose by 11%, while total cargo movements increased by 17% to 38.3 million tonnes.

Turnover also reached £45.2 million, up from £43.2 million in 2024, marking a fourth consecutive year of revenue growth.

The Port said service performance remained strong, with more than 98% service availability for customers using its pilotage services.

As one of Pembrokeshire’s most important economic institutions, the Port plays a central role in jobs, energy, tourism, marine safety and long-term investment across the Haven.

Dr Siân George, Chair of the Port of Milford Haven, said: “Our continued growth has been achieved not by chance, but through deliberate choices, and reflects our long-term perspective – one that prioritises our customers and our many stakeholders.

“As a trust port, we are committed to our mandate to ensure we hand on the Port in a better condition to future generations. We do this by placing responsible growth, environmental stewardship and prosperity for the communities who depend on the Waterway, at the forefront of our decision-making process.”

Tom Sawyer, CEO at the Port, added: “I would describe 2025 as another year of solid performance; one where our service delivery and business resilience continued to improve.

“We saw our fourth consecutive year of revenue growth and another year of strong profits. We thank our customers and Waterway communities and partners for their ongoing support, collaboration and challenge helping us to continually improve.

“And our thanks to our teams who have worked with an unerring focus on ensuring the Port of Milford Haven continues to deliver what our customers and communities deserve.”

Major investment

The Port continued a major investment programme during the year, spending £18 million in 2025 following £27.4 million in 2024.

Projects included a new pilot boat, upgrades to the Vessel Traffic Services command centre, refurbishment of marine facilities and further development at Milford Docks and Milford Waterfront.

The new 22-metre pilot boat, Llanion, completed sea trials and is expected to strengthen safety and resilience for vessel movements on the Waterway.

The Port also continued to position Pembroke Port for future floating offshore wind opportunities linked to the Celtic Freeport.

Supporters of that strategy argue that Milford Haven and Pembroke Dock could become central to the next generation of energy jobs, particularly if floating offshore wind develops at the scale hoped for by government and industry.

The Port also expanded its workforce, with 25 new employees joining in 2025 and four apprentices taken on, which it described as a record intake.

Its marine team has grown by 35% over five years.

Community role

The annual report highlights the Port’s role as a trust port, meaning it does not have shareholders and reinvests profits back into the business.

It says close to £500,000 was invested in community initiatives during the year.

These included water safety programmes, youth projects, support for Milford Youth Matters, the Torch Theatre, STEM opportunities for young women and local environmental work around the Haven Waterway.

Milford Waterfront also received recognition through a Tripadvisor Travellers’ Choice Award, while the Port said its hotels and tourism assets continued to support local jobs and visitor numbers.

The organisation was also recognised as one of the UK’s Best Workplaces for Women, an achievement in a sector that has historically been male dominated.

Profit picture

But the report also shows that, beneath the positive headline figures, the Port faces financial and environmental pressures.

Although turnover increased, operating profit fell from £6.8 million in 2024 to £5.2 million in 2025.

Profit before interest and tax rose to £6.9 million, but that figure was helped by a £1.7 million gain from the revaluation of investment properties.

The Port’s underlying profit measure, which strips out some accounting costs such as depreciation and amortisation, also fell from £11 million to £9.2 million.

That suggests the organisation is still profitable, but facing higher costs and tighter margins despite increased shipping activity.

Borrowing rises

Borrowing also rose sharply during the year.

The report shows total borrowings increased from £17.5 million to £25.2 million, while net debt rose from £15.3 million to £20.7 million.

Much of that increase appears to be linked to long-term capital investment, including marine infrastructure, dock improvements and hospitality assets.

Ports are expensive businesses to run and maintain, and major investment often requires borrowing.

However, because the Port is a trust port with responsibilities to the wider community, the level of borrowing is a legitimate matter for public scrutiny.

The Port says committed financing is in place until 2028 and points to strong operating cash flow and diversified income as evidence of resilience.

Emissions increase

The report also sets out the Port’s sustainability ambitions, including a target to cut total greenhouse gas emissions by 63% by 2035 and reach net zero by or before 2050.

It generated close to five gigawatt hours of renewable energy in 2025, avoiding almost 900 tonnes of carbon dioxide equivalent emissions.

But the report also shows direct emissions increased.

Scope 1 emissions rose from 1,340.39 tonnes of carbon dioxide equivalent in 2024 to 1,578.15 tonnes in 2025, largely due to diesel use.

Carbon intensity also rose from 31.03 to 34.94 tonnes of carbon dioxide equivalent per £1 million of turnover.

The figures underline the challenge facing the Port as it tries to balance growth in marine activity with its environmental ambitions.

Executive pay

Another figure likely to attract attention is senior remuneration.

The annual report shows the highest-paid director received £494,000 in 2025, compared with £271,000 in 2024.

The Port says the figure included a one-off compensatory award following benchmarking of senior executive pay.

There is no suggestion of wrongdoing, and the Port is entitled to argue that a nationally significant energy port requires experienced leadership.

But at a time when many local households and businesses are facing rising costs, executive pay at a trust port is a legitimate public-interest question.

Balanced picture

Overall, the Port of Milford Haven remains one of Pembrokeshire’s most important economic success stories.

The report shows a business that is growing, investing and planning for the future while maintaining a crucial role in UK energy infrastructure.

It also shows an organisation contributing to local skills, tourism, community projects and long-term regeneration.

But the annual report is not simply a success story.

It also shows falling operating profit, rising borrowing, increased direct emissions and a sharp rise in the remuneration of the highest-paid director.

Those issues do not cancel out the Port’s achievements.

But they do matter.

For a trust port serving Pembrokeshire and the wider national interest, scrutiny is not hostility. It is accountability.

PEMBROKESHIRE BUSINESSES WARNED OF PRESSURE FROM FUEL, TRANSPORT AND SUPPLIER COSTS

WELSH business confidence improved in April, but firms are still facing falling orders, job cuts and rising costs, according to the latest NatWest Wales Growth Tracker.

The report, compiled by S&P Global, found that confidence among Welsh businesses picked up from March’s recent low, amid hopes of stronger demand over the coming year.

However, the overall picture remains challenging. The Wales Business Activity Index rose to 47.9 in April, up from 46.2 in March, but remained below the 50 mark which separates growth from contraction.

For Pembrokeshire businesses, particularly those in tourism, hospitality, transport, food, farming supply chains and small-scale manufacturing, the figures point to continued pressure from higher fuel, materials and delivery costs.

The report found that output and new orders were still falling, although at a slower pace than in March. New sales declined for a third month running, with firms blaming weak customer demand and wider economic uncertainty.

Employment also fell sharply. Welsh businesses recorded the steepest drop in workforce numbers of any of the 12 UK nations and regions monitored, with firms cutting staff or not replacing workers who had left.

Cost pressures were a major concern. Operating expenses rose at the fastest rate since November 2022, driven by higher fuel, transportation and supplier costs. Firms increased their own prices in response, but not by enough to fully offset the rise in costs.

Jessica Shipman, Chair of the NatWest Cymru Board, said: “Welsh business confidence ticked higher on hopes of stronger customer demand and planned investment in building resiliency.

“However, we saw contractions in output and new orders soften during April, but underlying business conditions told a challenging tale. A further drop in new sales led to sharper falls in backlogs of work and employment, as firms sought to cut costs and streamline processes.”

She added that pricing remained a key concern, with higher fuel and transport costs putting further pressure on businesses.

The report also found that Welsh export conditions improved only slightly, with weaker performance in Germany and France weighing on the outlook.

For Pembrokeshire, where many businesses rely on seasonal trade, logistics, hospitality and supply chains linked to agriculture, energy and the port economy, the figures suggest that confidence may be recovering, but margins remain under pressure ahead of the summer trading period.

MENTAL HEALTH support has become a key issue for businesses in Wales as employers face growing pressure to help staff manage financial strain, stress and wellbeing at work.

The issue is being highlighted during Mental Health Awareness Week, with new insight from Reed showing that support for employee wellbeing is now an important part of attracting and retaining staff.

Workers in Wales said they need an annual income of £42,000 to live comfortably, compared with an average regional salary of £36,000. That leaves a “comfort gap” of £6,000.

Reed’s latest salary guides also show that 71% of workers say pay has become more important since the cost-of-living crisis, with many employees feeling the pressure of rising everyday costs.

The strain is not only financial. Separate research shows almost one in four workers in Wales, 24%, say they have previously been formally diagnosed with a mental health condition — the highest reported proportion of any UK region.

Pay alone ‘not enough’

Becky Hole, Regional Director at Reed, said employers now needed to look beyond salary alone.

She said: “In Wales, financial pressure and mental health challenges are closely linked. Our data shows that many employees are placing greater importance on stability and support, particularly where salary growth is constrained.

“This means benefits that support work-life balance and mental wellbeing are becoming a much more important part of how valued people feel at work.

“Organisations that prioritise employee wellbeing also benefit in tangible ways. By providing stronger support for mental health, employers can lower staff turnover and reduce the long-term costs linked to ongoing recruitment and the loss of skilled, experienced employees.”

What workers want

WHEN asked what would help them manage stress, 35% of workers in Wales said they wanted more flexible working, 34% wanted better mental health training for managers, and 30% wanted clearer communication about support already available.

However, Reed said there remains a gap between what workers want and what they receive.

The most common benefits currently reported by workers in Wales are onsite parking, at 28%, flexi time, at 26%, and hybrid working, at 23%. Nearly one in five workers, 18%, said they receive no benefits at all.

Ms Hole added: “What this shows is a disconnect between what employees say would most help them manage stress and how clearly mental health support is currently embedded and communicated.

“However, Wales stands out when it comes to flexi time, with a higher proportion of employers offering this benefit compared to other regions — a positive step given its proven role in supporting employee wellbeing and work-life balance.

“Flexible working, open conversations about mental health and managers who are properly trained all come through strongly as priorities.

“Employers have a responsibility to look after their people, and those who want to help their workforce truly destress need to ensure their benefits are visible, accessible and actively support everyday mental resilience.”

Reed said businesses that take wellbeing seriously are more likely to retain skills, stability and trust over the long term.