It said investors should achieve returns averaging 20% over the next 12 months, based on analysis of company valuations and returns since 1989.

Less worry about earnings means less worry about company valuations.

Corporate governance experts frown on pay schemes tied to share price fluctuations and company valuations.

Spice plans to take advantage of falling company valuations to make bolt-on acquisitions in that niche that will sit neatly alongside its existing energy procurement division.

So with government bond yields having risen in recent months in line with rising inflation expectations, water company valuations have also come under pressure.