Severn Trent Water profit slump

Jan 28 2009

Water supplier Severn Trent, which serves parts of the West Midlands, has said annual revenues will be impacted by up to �25 million because of a decline in consumption among metered customers.

The latest estimate compares with the company's forecast in November for a figure in the range of �12 million and �15 million.

It said the decline in water use was driven by corporate customers, adding it was otherwise trading in line with expectations.

Severn, which reports results for the year to March 31 on May 29, serves a population of more than eight million people from the Bristol Channel to the Humber, and from mid-Wales to the East Midlands.

It said levels of operating and capital expenditure continued to be in line with its expectations. Shares opened 3% lower following the update.