Partner Article

Northumbrian Water maintains steady flow

NORTHUMBRIA Water today said trading was in line with expectations as it predicted a 4% climb in operating costs and negotiates a new £150m loan facility from the European Investment Bank.

The Durham-headquartered plc said operating costs in the year to 31 March 2011 would be impacted by increased depreciation, rates, hired services and pension costs, but offset by savings on power.

The company said changes to the rates of UK corporation tax and capital allowances announced recently in the Emergency Budget would have no impact on the Group’s current tax in 2010/11 as they do not begin to take effect until April 2011.

Meanwhile the group confirmed that a £12m contract has been awarded for the Wormingford to Abberton pipeline associated with the Abberton reservoir expansion scheme.

“The Group continues to have a strong funding position with sufficient resources to meet all the requirements of the business to the end of 2011. Discussions with the European Investment Bank for a new loan facility of £150m are at an advanced stage,” said a company statement.

This was posted in Bdaily's Members' News section by Ruth Mitchell .