Severn Trent trading in line with expectations

LONDON (Reuters) - Water company Severn Trent (SVT.L) is trading in line with expectations but estimates lower consumption by metered customers will cut its full-year revenue by 1 percent, or 12 million pounds to 14 million.

Severn Trent also said on Tuesday gross capital expenditure in the year to March 2009 would be around 670 million pounds to 690 million including net infrastructure renewals of 130-140 million.

"We have previously noted a decline in consumption across our measured income base. We expect this to continue," Severn Trent, which raised its prices 5.1 percent on April 1, said in a statement.

The company said given the current economic climate, "we continue to closely monitor our customer debt and cash collection performance. Whilst we have not experienced any material deterioration over the period to date, this remains a risk to our outlook over the remainder of the year".

Severn Trent said the it had yet to determine the impact of a new Traffic Management Act which took effect in April and requires utilities to give more notice of work on public highways.

(Reporting by Dan Lalor; editing by Rory Channing)