NORTHUMBRIAN Water has reported a rise in full-year profits, due in part to higher water and sewerage charges.

The Durham-based group, which supplies 2.6 million people in the North East and 1.8 million in the South, said revenues rose by almost 5 per cent to £738.1m, and profits increased to £181m from £170.2m, slightly above analysts' forecasts.

Revenue was boosted by a 5.3 per cent rise in water and waste charges.

Despite the region enjoying a dry Spring the company said its water resources were good and there were no plans to impose any restrictions.

"The group continues to produce strong financial and operational results and has funding in place to meet our requirements for the next three years," said Chief Executive Heidi Mottram.

"We expect to perform well against our regulatory and contractual targets over the next four years."

The group employs 1,648 people in the North and 685 in the South.