Severn says big freeze caused rise in leaks
The harsh winter weather in December increased leaks and impacted operations at water company Severn Trent.
Cold snap: Freezing temperatures followed by thaw led to increase in leaks
The company said leaks were up due to the lengthy freeze followed by the thaw, but it was too soon to assess the impact on annual leakage figures.
'Severn Trent Water has deployed additional resources and is working to bring leakage rates back down as rapidly as possible and treated water storage levels are back to normal,' it said.
The extreme weather also affected work on the company's capital projects, which include infrastructure repairs.
Severn now expects annual spending on its capital programme will be £400m-£410m – assuming normal weather for the rest of the winter – compared with the £415m-£425m forecast when it issued half-year results in November.
The water company reported no worsening in its bad debt levels during the October 1 to January 24 period.
It expects bad debts to be around 2.3% of turnover for the full year, down from 2.5% in the year before.
But this forecast was made 'assuming no significant deterioration in the UK economy' - and issued just before news emerged of the shock 0.5% contraction in the economy in the last quarter of 2010.
Severn added that group one-off charges of around £20m-£25m are projected for the full year, mainly due to ongoing efficiency improvements and accelerated depreciation of assets.
Meanwhile, water consumption levels across its measured income base are expected to be the same in Severn's second half as during the same period the year before.
The company's share price was up 1p at 1,417p after its trading update.
Most watched Money videos
- BMW meets Swarovski and releases BMW i7 Crystal Headlights Iconic Glow
- Mini Cooper SE: The British icon gets an all-electric makeover
- MailOnline asks Lexie Limitless 5 quick fire EV road trip questions
- Skoda reveals Skoda Epiq as part of an all-electric car portfolio
- BMW's Vision Neue Klasse X unveils its sports activity vehicle future
- How to invest for income and growth: SAINTS' James Dow
- 'Now even better': Nissan Qashqai gets a facelift for 2024 version
- Mini celebrates the release of brand new all-electric car Mini Aceman
- 2025 Aston Martin DBX707: More luxury but comes with a higher price
- Land Rover unveil newest all-electric Range Rover SUV
- Blue Whale fund manager on the best of the Magnificent 7
- Tesla unveils new Model 3 Performance - it's the fastest ever!
- CITY WHISPERS: Bill Ackman's cerulean eyes charm...
- Britain's nascent battery industry receives shot in the...
- Helium and hydrogen company set to join stock market in...
- Cost-of-living crunch wipes shine off Thomas Sabo jewellery
- Where is Labour's 'white heat' revolution to revive...
- FTSE 100 hits an all-time high - but remember the stock...
- British businesses awash with 'accidental' bosses who...
- Shipping broker Clarksons on list of shame after...
- North Sea projects worth £21bn put at risk by Labour: Tax...
- Virgin Money's biggest independent investor...
- JOHCM UK EQUITY INCOME FUND: Rate cuts... and a spending...
- TONY HETHERINGTON: Boss behind firms fined £340k for more...
- Hollywood silly money? I'd only have stuffed it under the...
- MIDAS SHARE TIPS UPDATE: Wind is turning in Octopus...
- MIDAS SHARE TIPS: Why it soon won't be hip to give the...
- Cash in on the Northern property boom as our experts...
- As world lurches from crisis to crisis, experts share...
- 86-year-old Peter's woes with a faulty smart meter that...