Severn Trent revenues dip on lower industry consumption
27 Jan 2009
London - Severn Trent is forecasting a year-on-year dip in annual revenues of up to £25 million due mainly, it said, to a continuing decline in water usage by industry during the period from 1 Oct 2008 to date. The company is, however, on track, with the planned operating cost savings of £30 million during 2008/09 and 2009/10.
While capital expenditure over the AMP4 period remains in line with its expectations, Severn Trent anticipates some movement in the capital programme from 2008/09 to 2009/10 "due to re-prioritisation." Gross capital expenditure (UK GAAP) for 2008/09 will now be around £650-670 million, compared to a previous forecast of £670-690 million.
"Whilst we remain on track to meet our operating and capital expenditure targets in monetary terms, the recent rapid reduction of both RPI and COPI is likely to lead to a lower than anticipated baseline final determination as we proceed into the final year of AMP4, said Severn Trent.
Severn Trent will publish a pre-close period trading statement on 24 March and announce its preliminary full year results on 29 May 2009.
