PRE-TAX profit has slumped 51% at Severn Trent Water despite a small increase in group turnover.
In its half-year report for the period ending September 30 this year, the Coventry-based utility says that pre-tax profit was £101.1m compared with £208.2m over the same six months in 2009.
Group turnover has climbed year-on-year by 1.9% from £852.1m to £867.9m while basic earnings per share have decreased by 30.8% from 63.4p to 43.9p and the interim dividend declared has dropped by 2.5% to 26.04p.
Severn Trent chief executive Tony Wray said: “We have made a good start to the AMP5 period (asset management programme) with further progress in developing our people, delivering the highest standards and the lowest charges.
“We have continued to raise standards and drive greater efficiency across the business with good progress in many key areas including further improvements in customer service, sewer flooding and leakage.
“We are also pleased to report that despite challenging markets, Severn Trent Services has returned to growth, as expected.
“Thanks to the support and hard work of all our people, Severn Trent is approaching the end of a significant period of change, which has increased our confidence in the future of our business and our ability to deliver on planned savings and operational improvements through AMP5.”
