16th Jul 2014 07:00
LONDON (Alliance News) - Severn Trent PLC Wednesday said trading across the group has been in line with expectations since April 1, with its forecasted bad debt level maintained at around 2.2% of revenue for the full-year to March 2015.
In an interim management statement for the period April 1 to date, Severn Trent said operating expenditure continues to be in line with internal expectations, while operating costs are expected to rise year-on-year due to the impact of inflation and power costs.
The water company said it has made good progress in delivering its 2015-2020 capital investment programme. It said expectations for net capital expenditure for the programme remain between GBP510 million and GBP530 million, including GBP15 million related to private drains and sewers.
The level of net infrastructure renewals expenditure included in this range is anticipated to be GBP125 million to GBP135 million, the company added.
FTSE 100-listed Severn Trent also noted that it submitted its revised business plan to regulator Ofwat during the period.
Severn Trent's revised plan for 2015-2020 means customer bills will decrease in real terms by 1.5% over the period, rather than the 1.2% it initially proposed.
The company will announce its interim results for the period ending September 30 on November 25.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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