NORTHUMBRIAN Water says trading for the last quarter has been in line with expectations, but expressed disappointment at missing its leakage target in the North for the last year.
The Durham-based utility has reported that its operating costs for the year to March 31, 2012, are expected to rise by 3% due to inflation and the added cost of new responsibilities such as private drains and the Carbon Reduction Commitment.
However, it added the costs were “partially offset by efficiencies”, and the water and sewerage charges at subsidiary Northumbrian Water Ltd (NWL) have increased by 8.5% in 2011/12.
Northumbrian Water is currently being eyed up for a potential takeover bid and said this month that Hong Kong firm Cheung Kong Infrastructure Holdings had been allowed to do due diligence on the firm after making a 465p per-share non-binding proposal.
It repeated yesterday that “there can be no certainty that any offer will be made for the company, nor as to the terms on which any offer might be made”.
In its interim management statement, it also added it was “disappointed” to miss its leakage target in the North in 2010/11, a failure it put down to “the most severe December weather for over a hundred years”.
