Severn Trent’s H1 Profit Drop

Severn Trent has reported 16% drop in profit during the first half of 2010 to £158m ($253m), compared with the profit of £188m ($296.9m) during the same period the previous year.

The UK water company, which supplies water and sewerage services to over 3.7 million households in the Midlands and mid Wales, reported 1.9% higher revenue at £867.9m ($1.2bn), compared with £852m ($1.3bn) during the same period a year ago.

The turnover in Severn Trent Water increased by 1% in 2010/11 to £702.3m ($1.1bn).

The water company said extra costs for restructuring and infrastructure spending led to the drop in profits.