WATER supplier Severn Trent is expected to announce its annual results today.

The utility giant, which supplies thousands of homes and businesses in North Staffordshire, has already braced investors for a £25 million hit to annual revenues – warning in January that sales were being affected by a decline in water consumption among metered customers.

It said the decline in water use was driven by corporate customers amid the recession.

Analysts are expecting the company to report a six per cent drop in underlying pre-tax profits to £274 million for the financial year up to March 31 – down from £292.2 million for the previous year.

Last year the firm announced record profits before interest and tax of £469.5 million, which was a rise of 15.8 per cent on 2007's figure of £405.3 million.

Turnover was up 4.9 per cent from £1.48 billion to £1.55 billion.