Severn Trent Sees Trading In Line With Views >SVT.LN

20th Jul 2010 07:12

LONDON (Dow Jones)--Severn Trent PLC (SVT.LN), a water, waste and utility services group, said Tuesday that trading for the period from April 1 to July 19 has been in line with its expectations and prior guidance. MAIN FACTS: -Sales prices in Severn Trent Water decreased by 0.7% (including inflation) from April 1. -Consumption across measured income base, principally non-household customers, has remained relatively stable year on year in the period. -The bad debt level has remained at around 2.5% of turnover, the level reported for the prior financial year. -Operating expenditure continues to be in line with the board's expectations for the year. -Operating costs are expected to rise year on year, due to the impact of higher inflation and power costs, partially offset by efficiency savings already achieved. -It is expected that net capital expenditure will be around GBP425 to GBP445 million. -The level of net infrastructure renewals expenditure included in this figure is anticipated to be broadly in line with the previous year, 2009/10. -Higher average debt levels and higher inflation (on around GBP1 billion of index linked debt) will also impact on the interest charge for the year. -Therefore it is expected the interest charge will rise by around GBP15 million compared with the prior year, before adjustments related to pension accounting. -The expected effective current tax rate for 2010/11 remains 25% to 27%. -Changes to the U.K. corporation tax and capital allowances regime announced in the budget on 22nd June will not impact the current financial year. -The company is reviewing the impact on future years and based on current information, initial analysis indicates that the changes will be broadly neutral over the AMP5 period. -Shares closed Monday at 1276 pence. -By Tommy Stubbington, Dow Jones Newswires; 44-20-7842-9268; [email protected] (END) Dow Jones Newswires July 20, 2010 02:12 ET (06:12 GMT)