Revenues sinking
A DROP in water usage by recession-hit companies such as car-maker Nissan and steel giant Corus is disrupting the flow of revenues into Northumbrian Water.
The £1.2billion firm said it expected revenues in the second half of the year to drop by £4million.
This compares with the near £348million achieved in the first six months of the year.
Northumbrian, which provides water and sewerage services to 2.6 million people in the North and 1.7 million in the South under the Essex & Suffolk Water brand name, said trading in all other parts of the business was in line.
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A spokesman for Northumbrian said: “If industries are using less water there is going to be a short-term impact.”
This echoes recent comments by Severn Trent, which warned that annual revenues could be as much as £25million down on the previous year because of falling demand from corporate metered customers.
Northumbrian said its strong financial position would enable it to meet spending requirements through to 2011.