Water companies say finances impervious to floods
One thing that hasn't been soaked in the ongoing deluge – Severn Trent's finances.
FTSE 100 utilities company has said this morning that the floods currently besetting Britain won’t be financially damaging to it: "We currently anticipate no material financial impact from the present floods."
In a separate statement, Pennon Group, which owns South West Water, said similar:
Despite the exceptional weather and resultant flooding in the South West, the company continues to deliver effective operational performance and high standards of customer service, underpinned by strong financial performance.
Severn Trent said, in a trading update today, that inflation and power costs will push up operating costs for it, but trading from 1 October to date remains in line with expectations.
Operating expenditure is also in line with what it expects for the year, and efficiency improvements are set to help offset rising costs.
Net capital expenditure is forecast to be towards the low end of the £600m to £620m range, including around £15m for private drains and sewers.
The company says it anticipates consumption to be up slightly year-on-year, given current volumes.
It also expects to announce a six per cent increase in dividend to 80.4p when it publishes its preliminary results for the year ending 31 March, on 29 May.