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Severn Trent has reported a 6.4 per cent fall in half-year profits after the flooding which hit the water company's operations this summer.

The firm confirmed its profit before tax dropped to £149.5 million in the six months to September 30th, down from £159.8 million for the same period last year.

News of the profit fall comes after Severn Trent revealed it is to face criminal charges over the alleged supply of false information to the water industry regulator.

In a statement last week the company revealed the Serious Fraud Office (SFO) intends to charge the firm with three offences relating to leakage data supplied to Ofwat between 2000 and 2002.

But despite the setbacks, Severn Trent stressed today it had made "good progress" over the first-half.

The company said flooding across Tewkesbury, Cheltenham and Gloucester this summer, caused by "unprecedented" wet weather, had presented "significant challenges" to its business.

Severn Trent said the financial cost of the flooding to the company had yet to be fully evaluated, but confirmed the bill to date had reached £18.2 million.

The water firm said it was continuing to assess long-term damage to over 150 waste water sites, but had no reason to revise previous estimates which put the expected total cost of the flooding at between £25 million and £35 million.

Meanwhile the company has stressed its commitment to boosting performance standards, claiming its customer service has improved and reporting a "significant reduction" in leakage levels.

"Raising standards of performance is my absolute priority and we have set ourselves ambitious objectives for the coming years," said Severn Trent chief executive Tony Wray.

"By raising standards we expect to continue to improve customer service and generate sustained financial returns for our shareholders," he added.