Shares in water company Severn Trent were up on the FTSE 100 after the group said that trading for the quarter ended 19 July had been in line with expectations throughout the period.

The group said that sales prices at Severn Trent Water had fallen by 0.7 per cent taking inflation into account and that no new material trading events or transactions had taken place in the quarter.

Water consumption had remained "relatively stable" and the group's bad debt levels remained at around 2.5 per cent.

Operating expenditure was reported as being in line with expectations, although operating costs are expected to rise year on year due to higher inflation and power costs, however this will be slightly offset by savings already made at Severn Trent.

Net capital expenditure at Severn Trent is expected to be £425 million to £445 million, roughly in line with the previous year. Interest charges applied to the company are expended to rise by around £15 million, thanks to higher average debt levels and rising inflation.

By 13:08 shares in Severn Trent were up 0.39 per cent to 1,281.00 pence per share on the FTSE 100.