Higher charges lift sales by 5% at Northumbrian Water

1st Jun 2011 15:10

Full-year revenue at Northumbrian Water grew by 5% from £704.7m to £738.1m in the 12 months ended 31 March, as the water group was able to raise prices in line with an Ofwat review.The group said that water and sewerage charges increased in line with the price review allowance of 5% plus the November 2009 retail price index of 0.3%. Meanwhile, pre-tax profit increased by 6.3% to £181m, from £170.2m. Basic earnings per share jumped by over 45% from 23.67p to 34.44p, after taking into account the deferred tax credit of £46.3m relating to the corporation tax rate reduction."The group continues to produce strong financial and operational results and has funding in place to meet our requirements for the next three years. We expect to perform well against our regulatory and contractual targets over the next four years," said chief executive officer Heidi Mottram.The total dividend was raised by 7.9% to 14.29p per share, from 13.24 previously.---BC