Beleaguered West Midlands water giant Severn Trent today posted bumper profits of almost £150 million – or more than £550 a minute.
The company, heavily criticised over leaking pipes and facing a Serious Fraud Squad prosecution, made £149.5 million in the six months up to September.
Today shareholders got a 6.9 per cent rise in the half year dividend.
evern Trent, which employs 1,300 people in Birmingham and Wolverhampton and serves 3.7 million household and business customers in England and Wales, made the profits despite a disastrous year.
The Serious Fraud Office is prosecuting for three alleged offences of supplying false data about leaks to regulator, Ofwat, between 2000 and 2002. If convicted, the firm faces an unlimited fine from the judge in the case.
It has had to pay back its customers £42 million over the false leakage data.
On top of that, Ofwat will impose a fine after the court case is completed and also intends to fine Severn Trent for supplying misstated customer relations data.
The firm ran into trouble with Ofwat as the only UK water firm to miss its target on cutting leaks – more than 100 million gallons leaks daily.
It says it is spending £45 million on the problem. he Severn Trent bill for summer floods has so far reached £18 million and may end up costing it £35 million.
But bosses were in a bullish mood today, saying it was plugging leaks, and chairman Sir John Egan said the last six months was a period of “good progress”.
Chief executive Tony Wray added: “Our improvement plans are leading to rising standards of customer service, a significant reduction in levels of leakage and a continuing downward trend in pollution incidents.”
He said problems meant pre-tax profits in the six months fell 6.4 per cent. After stripping out one-off costs, however, profits were up 13.5 per cent to £161.5 million. Turnover rose 3.7 per cent to £774 million.
7 Comments
Perhaps you might like to take up with Severn Trent the water leak outside Help the Aged Market Place Willenhall which has been leaking for at least 8 weeks it has been reported, men come look at it and then disappear your comments please
LOL.
I bet their flabbergasted when they see water coming out of a leaking pipe.
When we fetched Severn Trent to a problem last year..the idiot who attended asked where was the problem……ermmm its that 3ft fountain in the street…hardly invisible!
Phewwww we nearly got Einstien!
So do not invest in flood defences or fix leaks just make profit thanks thatcher for selling off
I am working at Minworth STW where £100 million pounds is being spent on upgrading the treatment works to handle the whole of Birmingham in the future,what you get for what you pay is a bargain so stop moaning
Anyone who has tried to contact these people via telephone will soon realise that the service they provide is suffering at the expense of the shareholders.
The population of Birmingham is well over 1 million. I am sure that many agree that £100 million is a modest investment when one considers the amount of money the good citizens of Birmingham shell out in water rates year in year out.
BJJ…What do you actually do,do you actually respond to the people with teh problems of foul water and bursts and over charging.
So Birmingham is having an upgrade so it damn well should the water systems there are how old!Its their right to good clean water and purity,the city is developing daily.
Dont try and make it out to be a gift to the people of Birmingham weve papid for the work mate!