Britain's water services group Severn Trent Plc said it expects exceptional charges of around 20 million pounds to 25 million pounds for the full year, mainly related to ongoing efficiency improvements and accelerated deprecation of assets.
The group is organised into two main business segments. Severn Trent Water provides water and sewerage services to over 3.7 million households and businesses in the Midlands and mid-Wales.
The group said Severn Trent Water has seen a rise in leakage above normal levels for the winter due to the recent extended periods of freezing temperatures followed by a thaw. Severn Trent Water has deployed additional resources and is working to bring leakage rates back down as rapidly as possible and treated water storage levels are back to normal.
For the full year, the group said it expects net capex to be in the range of 400 million pounds ($638 million) to 410 million pounds, assuming temperatures remain closer to average levels for the remainder of the winter.
Severn Trent Services, the group's other business segement, provides services and products associated with water, waste water and contaminated land principally in the US, UK and Europe.
The group expects effective current tax rate for 2010/11 will be towards the upper end of the 25 percent to 28 percent range guided earlier.
Severn Trent is scheduled to report its results for the year ending March 31 on May 27.
Shares of the FTSE 100 company ended Monday's trading at 1,416 pence on the London Stock Exchange.