Higher prices buoy Northumbrian Water
28/11/2007
LONDON (ShareCast) - Higher water and sewerage prices helped Northumbrian Water to a solid first half despite incidences of flooding nearly quadrupling in the period.
Revenues rose to £313.5m in the six months to 30 September, from £296m, mainly due to the uplift in water and sewerage charges. Profit on ordinary activities before interest for the period was £140.4m, up from £124.4m, with pre-tax profits of £88m against £77.5m.
Lower energy costs helped offset higher depreciation charges following its upgraded capital investment. Northumbrian said. Sewer flooding incidents increased substantially to 816 from 212 even though it was not as badly affected as other parts of the country by recent flooding.
The interim dividend rises by 6.7% to 4p, consistent with the policy to maintain a progressive dividend policy with real increases of around 3%pa during the current regulatory period.
The company's operating and financial performance remains strong, it added.