Member Article

Water firm reports drop in profits

Northumbrian Water has cited soaring energy costs and lower usage by recession-hit industry as the reason for a 10% drop in annual profits.

The group said pre-tax profits were down to £152.7 million in the year to March 31 as the firm was hit by a 50% increase in energy prices. Overall demand for water and sewerage was down 1%, but industrial and commercial customers cut volumes by around 4%.

John Cuthbert, managing director, said: “The group has produced good financial and operating results against a difficult economic background. Energy prices continue to be volatile and, despite managed reductions in demand, have increased operating costs in the year.”

The firm said that although energy prices have softened recently, it expects them to remain volatile.

Projects include an anaerobic digestion plant at Bran Sands on Teesside and measures to cope with extensive sewer flooding in recent years.

This was posted in Bdaily's Members' News section by Ruth Mitchell .