LONDON (Reuters) - British water company Severn Trent reported a 3 percent rise in half-year profit on Tuesday, allowing it to keep a promise to pay shareholders a higher full-year dividend.
The group made 275 million pounds profit before interest and tax over the first six months of its financial year to the end of September and group turnover rose 2.7 percent to 948 million pounds.
The company's Severn Trent Services division, which provides water and waste water management products, achieved a four-fold year-on-year rise in pre-tax profits to 6.4 million pounds.
This strong performance allowed Severn Trent to stick to its pledge to pay a full-year dividend of 84.9 pence per share, more than 5 percent higher than the payout for the 2013/14 financial year.
Britain's water companies are waiting for a decision from the industry regulator in just over two weeks that will determine the prices they are allowed to charge customers until 2020.
"We are acutely aware that many of our customers are facing difficult times and we have kept our bill increases at or below inflation for 5 years running," Severn Trent Chief Executive Liv Garfield said in a statement.
The company said it was planning to launch a new social tariff next year to give those eligible discounts of up to 90 percent on standard water bills.
Shares in Severn Trent opened around 0.5 percent higher at 2,069 pence.
(1 US dollar = 0.6387 British pound)
(Reporting by Karolin Schaps; editing by Jason Neely and Jane Merriman)