Going with the flow at Northumbrian Water

29th Jul 2010 16:39

Northumbrian Water Group's trading since the beginning of April has been in line with expectations.Operating costs for the 12 months to 31 March 2011 are forecast to increase by around 4% (excluding restructuring costs in 2009/10). This reflects increased depreciation, rates, hired services and pension costs, offset by savings on power, which is bought forward to March 2015. The group continues to have a strong funding position with sufficient resources to meet all the requirements of the business to the end of 2011. Discussions with the European Investment Bank for a new loan facility of £150m are at an advanced stage. The group's cash position at 30 June 2010 was £200m. Net debt is expected to be around £2.3bn at 31 March 2011 and gearing levels are not forecast to be materially different from the position reported in June.