Northumbrian Water Trading In Line With Expectations

29th Jul 2010 07:27

LONDON (Dow Jones)--Northumbrian Water Group PLC (NWG.LN), a U.K. water company, said Thursday that trading has been in line with expectations for the period April 1 to July 28 and that there have been no material events or transactions during the period. MAIN FACTS: -Water and sewerage charges at the Group's principal subsidiary, Northumbrian Water Ltd., have increased by 5.3% for 2010/11, in line with the application of the K factor of 5% and 0.3% in respect of the November 2009 Retail Price Index. -Operating costs for the 12 months to March 31, 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. -Capital investment in the regulated business is progressing in line with the final determination. -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 GBP150 million are at an advanced stage. -Cash position at June 30 GBP200 million. -Net debt is expected to be around GBP2.3 billion at March 31, 2011 and gearing levels are not forecast to be materially different from the position reported in June. -Proposing a final dividend of 8.85 pence per share, giving a full year ordinary dividend of 13.24 pence per share (an increase of 3.5%), which will be payable on Sep. 10. -Shares closed Wednesday at 329.6 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires July 29, 2010 02:27 ET (06:27 GMT)