Severn Trent profits down but no hosepipe ban

LONDON (ShareCast) - Utility provider Severn Trent (Stuttgart: A0LBHG - news) announced profits were down but said it forecast no water restrictions for customers this year. Profit before tax fell 38% to £156.7m in the year to the end of March, something the firm blamed on operational, infrastructure and employment costs. Consumption from metered customers was also lower year on year knocking £10.5m off turnover. Total (Other OTC: TTFNF.PK - news) turnover was £1.77bn with earnings per share up 37% to 72.5p. The company also pushed up its dividend up 7.7% to 70.1p. As drought continues in some parts of the UK, Severn Trent said it had reduced leakage by 7% year-on-year to a record low level, and below Ofwat targets. "Our strong balance sheet and investment grade credit rating enable us to share that benefit with our customers and investors by increasing our investment programme in our water and waste water networks by £150 million, to improve further our services to customers, and return an additional £150 million to our shareholders," Chief Executive Tony Wray.