Water group warns on revenues
ESSEX & Suffolk Water parent group Northumbrian Water said yesterday that its second half revenues would be hit as industrial customers scaled back usage in response to the economic downturn.
ESSEX & Suffolk Water parent group Northumbrian Water said yesterday that its second half revenues would be hit as industrial customers scaled back usage in response to the economic downturn.
The firm, which operates as Northumbrian Water in the North East and Essex & Suffolk Water in the East, said revenues in the six months to March 31 would fall 1% or �4 million below the first half of its financial year.
A spokesman said while water usage from residential customers remains relatively constant, industry would cut production to reflect the drop in demand.
“If industries are using less water there is going to be a short term impact,” he said.
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Northumbrian serves 2.6 million people in the North East with water and sewerage services and 1.7 million people in the East - mainly in north Suffolk, south Norfolk and mid Essex - with water services only.
The group said trading had been in line with expectation for all other parts of the business.
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Northumbrian said it had “a strong funding position in the current climate with sufficient resources to meet the group's requirements” to 2011. The group said it had �370 million in cash, and net debts of �2.2 billion.
Its update follows a warning from fellow water company Severn Trent who said annual revenues would be impacted by up to �25 million because of a decline in water consumption among corporate metered customers.
Northumbrian also said yesterday that capital investment for its regulated businesses was continuing to plan, with a forecast outturn of �1.1billion for the period April 2005 to March 2010.
Planning permission was granted at the end of January for the scheme to increase the capacity of the group's existing Abberton reservoir in Essex. Northumbrian said the scheme, due for completion by 2014, should secure water supplies for customers in Essex “for the foreseeable future”.
