6th Feb 2008 07:00
Northumbrian Water Group PLC06 February 2008 6 February 2008 Northumbrian Water Group plc ("the Company") Interim Management Statement The Company is today publishing its Interim Management Statement for the period1 October 2007 to 5 February 2008. The Board confirms that trading has been in line with expectations and thatthere have been no material events or transactions during the period. Operating costs continue to be a key focus for the business and we expect tooutperform the Ofwat efficiency target for 2007/08. However, as reportedpreviously, rising energy prices for 2008/09 will largely remove the benefit oflower energy costs experienced in the current year. Capital investment is continuing to plan with further investment to reduce therisk of sewer flooding and improving water quality. For the regulated business,forecast capital investment by 2007/08 on a cumulative basis continues to be inline with the capital programme approved by Ofwat for the period from 2005 to2010. Gearing levels remain unchanged with net debt approaching £2.2bn by March2008. We published our Strategic Direction Statements entitled 'Looking to the Future'on 28 November 2007. Separate statements were published for our northern andsouthern operating areas. These are available on our websites (www.nwl.co.uk/www.eswater.co.uk). Later this month, we have arranged multi-stakeholderseminars in both of our operating areas to discuss these documents and theirimpact. Our water resource position remains strong with combined storage at our Abbertonand Hanningfield reservoirs in Essex currently above the long term average. Theplanning application to increase the capacity of Abberton was submitted on 14December and a decision from the local planning authorities is expected by earlysummer 2008. Ofwat published its methodology consultation paper for the next Price Review inOctober 2007. It proposes a number of significant changes and our response toOfwat is available on our websites. Outlook The Group continues to deliver good performance and we are confident of meetingour regulatory outputs for the year whilst maintaining good customer levels ofservice. The preliminary results for the year ending 31 March 2008 will beannounced on 4 June 2008. For further information contact: Northumbrian Water 0191 301 6419John Cuthbert, Managing DirectorChris Green, Finance DirectorAlistair Baker, Communications & PR Manager Pelham PR 020 7743 6679James HendersonChelsea HayesArchie Berens Note: Information in this announcement is based upon unaudited management accounts.This announcement includes certain forward looking statements which are based oncurrent expectations and are subject to uncertainties and risks that could causeactual results to differ materially from any expected future events or resultsreferred to in these forward looking statements. Unless otherwise required byapplicable law, regulation or accounting standard, we do not undertake anyobligation to update or revise any forward looking statements, whether as aresult of new information, future developments or otherwise. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Natwest