Water company Severn Trent has announced it will cut 600 jobs over the next five years to reduce its overheads.
In its pre-close trading statement the firm announced its performance in 2006 was "consistent with its expectations" and predicted pre-tax profits would be between one and three per cent higher than 2005's figure of £400.4 million.
However the company, which provides water and sewage services for about eight million people in the Midlands and some areas of Wales, announced that 600 jobs would be axed over the next five years as part of plans by management to "achieve higher standards".
The Birmingham-based firm also announced that it expected to spend between £95 and £100 million on renewing the infrastructure of the operations after last summer's problems with water leakage.
"While performance has been good with respect to water quality and health and safety, Severn Trent Water has needed to improve in respect of leakage, customer service and controls," a statement from the firm read.
Commenting on last summer's drought concerns, Severn Trent water revealed its raw water storage position is currently "normal for this time of year" but acknowledged that a "challenging summer" led to "increased investment in leakage control".
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