StockMarketWire.com - Northumbrian Water Group expects total revenue for 2009-10 to be broadly the same as 2008-09.

Water and sewerage charges at the group's principal subsidiary, Northumbrian Water Ltd, have increased by 3%, in line with the November 2008 Retail Prices Index.

But it says mon-household revenue continues to be affected by the current economic downturn. Recent announcements have been made concerning two major customers on Teesside.

Corus confirmed its intention to continue operating its South Bank Coke Ovens and the Artenius plant, which ceased production in March 2009, has been acquired by a subsidiary of KP Chemical Corporation.

The loss of Artenius was incorporated in the recent final determination but Corus' partial closure was too late to be considered.

For 2010-11, non-household revenue is expected to be broadly in line with the recent Ofwat final determination. As previously reported, the group is reducing its manning levels at Bran Sands and has also reviewed other parts of the business.

Efficiency savings of £3m per annum will result, with a one-off restructuring charge of around £5m in 2009-10. In all other respects, trading has been in line with expectations.

Preliminary results for the year ending 31 March will be announced on 2 June.


Story provided by Business Financial Newswire