Northumbrian Water interim profits up as revenue rises 5 pct

U.K.'s Northumbrian Water Group Plc reported a higher profit for the first half as revenue rose 5 percent, and said it was well placed to maintain a strong financial performance.

Our funding position is strong and plans are in place for additional long term borrowing facilities which will ensure sufficient funds to meet the ongoing needs of the business, the company said.

The provider of water and waste water services lifted its interim dividend by 7.5 percent to 4.72 pence.

Demand at Northumbrian Water Ltd, the group's main unit, remained steady, with increases in measured water volumes, it said.

For the six months ended Sept. 30, pretax profit increased 3 percent to 89.7 million pounds from 87.0 million pounds. Revenue rose to 369.4 million pounds ($574.4 million) from 351.2 million pounds.

Income from the group's water and waste water contracts grew 3.7 percent.

Total cash and short term cash deposits amounted to 176.7 million pounds as at Sept. 30. This is sufficient to meet the needs of the business to March 2012, the group said.

Last week, Pennon Group posted a slight rise in interim profits, while Severn Trent and United Utilities both reported a fall in profits for the first half.

Shares of Northumbrian Water closed Monday's regular trading session at 331.90 pence on the London Stock Exchange, 8.82 percent below its 52-week high of 364.00 pence.