Severn Trent profits down

29th May 2009 07:15

Water company Severn Trent saw profits fall for the year due to increased energy and commodity costs. Profit before tax for the year fell 12.9% to £167.6m. Underlying profit before interest, tax and exceptionals was flat at £470m affected by increased energy and commodity costs, an increase in infrastructure renewals expenditure and depreciation in Severn Trent Water.Group turnover from continuing operations rose 5.8% to £1,642.2m. The growth in turnover was mainly due to the price increases in Severn Trent Water, offset by the impact of lower consumption across its measured commercial income base, which reduced year on year revenues by around £20m.The group said it has delivered its planned operating cost savings this year and is on track to deliver higher than targeted operating cost savings in 2009/10. "We remain on track to successfully deliver our capital programme over the final year of AMP4," it said."Looking forward to the next Price Review (PR09), preparations have gone well. There is still a way to go in the regulatory process, but we have what we believe to be a high quality, holistic and balanced plan that has customers at its heart, is supported by all the key stakeholders and will enable a fair and appropriate return for our investors," added Severn Trent.Full year dividend rose 2.6% to 67.34p per share.