Severn Trent Plc (SVT.L) issued interim management statement for the period from October 1, 2011 to February 16, 2012.
The company confirmed that trading across the group has been in line with its expectations and added that no new material trading events or transactions occurred during the period.
Also, consumption levels across Severn Trent's measured income base for FY 2011/12 are expected to lower year on year, in line with the trend seen in the first half. Besides, the level of bad debt for the full year is expected to remain broadly stable compared with the first six months, although the company continues to monitor future developments closely, especially unemployment levels.
The company noted that operating expenditure continues to be in line with the Board's expectations for the year, and below the level allowed in the Final Determination. Operating costs are expected to rise year on year, due to the impact of inflation, prudent investment in our networks, and quasi taxes, partially offset by efficiency savings.
Further, the expected effective current tax rate for the group for FY 2011/12 remains at 26% to 27%.
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by RTT Staff Writer
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