13th Feb 2015 07:38
LONDON (Alliance News) - Severn Trent PLC on Friday said it is on track to meet its expectations for the full year, despite a forecast for top-line growth to moderate in the second half.
The FTSE 100-listed water utility said it expects to meet its expectations for pretax profit in the year to March 31, though it does expect growth to moderate in the second half.
Consumption across its measured income base is expected to be slightly higher year-on-year owing to the warmer weather conditions in the UK.
It expects its bad debt level to remain unchanged at around 2.2% of revenue for the year, and its operating expenditure remains in line for the year and, on a like-for-like basis, with the level of Ofwat's Final Determination for AMP5. Operating costs will be higher year-on-year due to the impact of inflation and tax, but will be partially offset by efficiency improvements.
Severn Trent will publish its results for the year to the end of March on May 22.
By Sam Unsted; [email protected]; @SamUAtAlliance
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