Results out at Severn Trent

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.