Sector movers: Water groups on the rise

24th Nov 2009 13:14

Water groups are on the rise after strong numbers from Severn Trent, which operates in the English Midlands and Wales.Underlying pre-tax profits at Severn climbed to £188m from £154.5m on revenues that rose to £852.1m from £814.3m. The interim dividend was lifted by 1.6% to 26.71p.The water companies will find out on Thursday the regulator Ofwat's final determination on how much it can charge customers up to 2015.Yesterday, Northumbrian Water, also higher today, said the final decision by Ofwat is a 'key risk' as it posted a rise in profits on the back of previous price rises.Ofwat has already indicated to Severn that household bills will have to fall by 8% in real terms over the period, while Northumbrian will be allowed to lift prices modestly.The construction and materials sector is led lower by wood hardening specialist Kurawood which has seen losses widen and raised £200,000 from a subscription with Fox Capital at 2p a share. "The additional funds will provide the board with the opportunity to concentrate on entering into technology licenses introduced to the group via our preferred agents, introducers and re-manufacturers," it said.On completion of the subscription and conversion of a £100,000 convertible loan into 5m ordinary shares, Fox Capital will own 62% of the business, although the takeover panel has waived its obligation to make a general offer to all remaining shareholders. It reported a pre-tax loss of £6.6m for the 12 months ended 30 September 2008, out from £5.6m a year earlier.The group confirmed its New Zealand unit PG Industries Limited will stop trading after failing to generate revenues from product sales since Kurawood floated in September 2007.Top performing sectors so far todayPersonal Goods 10,318.30 +2.04%Automobiles & Parts 2,620.97 +1.91%Gas, Water & Multiutilities 3,993.14 +1.40%Life Insurance 4,075.83 +1.24%Beverages 7,996.06 +1.17%Bottom performing sectors so far todayIndustrial Metals 5,104.78 -2.59%Forestry & Paper 3,539.47 -1.23%Construction & Materials 3,370.82 -0.87%Oil Equipment Services & Distribution 15,526.27 -0.56%Travel & Leisure 3,922.57 -0.51%