LONDON, June 6 (bdnews24.com/Reuters) - British water utility Severn Trent reported a 9.5 percent increase in year pretax profit on Wednesday but said it probably had missed targets for curbing leakage from its pipes.
Chief Executive Colin Matthews told reporters the group was currently compiling its leakage data for the year and was unlikely to have met the target set by Britain's water regulator of 525 megalitres per day.
"But we have reduced leakage and are confident of hitting our leakage targets in 2007-2008," he added.
Profit before tax and exceptional items rose to 252 million pounds ($502.7 million) in the year to March 31 from 230 million in the preceding year.
Severn Trent, which transformed itself during the year by demerging its Biffa waste disposal division and selling its property and US laboratories, said it would be cutting 600 jobs over the next five years.
Matthews said he planned to step down by the end of 2007, handing control to Tony Wray, currently managing director of Severn Trent Water.
The group proposed a total dividend for the year of 61.45 pence, up 7.8 percent.
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