 The company has provisional backing to increase prices |
A water company that is planning to increase bills by nearly 10% has told shareholders it expects profits to go up. Northumbrian Water said on Wednesday its half-year profits were �15.5m in the four months to 30 September, a fall of 55%.
It blamed the fall on a recent acquisition but managing director John Cuthbert said the price rise agreed with Ofwat would lift revenue and profitability.
The water firm has blamed increased customer debt and higher water quality monitoring costs for the price rise.
The company has been given provisional backing from industry regulator Ofwat to increase bills by an average of 9.6% next year. The decision will still have to undergo a public consultation.
Northumbrian Water provides water and sewerage services in the north-east of England in its own name and water services in the South East through its Essex and Suffolk Water brand.
As part of Wednesday's results, investors will receive a dividend of 2.32p per share.
Finance director Chris Green said the bill increases, which are expected to bring in revenues of �35m in 2004-2005, would not fund dividend payments.
One-Minute World News 
News services
E-mail this to a friend 
Printable version 