Severn Trent share price: FTSE 100 utility updates investors on recent performance

on Nov 25, 2014
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iNVEZZ.com, Tuesday, November 25: Severn Trent Plc (LON:SVT) has this morning released its interim results.

*h*Highlights from the company statement*h*
● Good first six months: financial results in line with expectations
● Capital investment on track to deliver AMP5 target of £2.6 billion; RCV1 still expected to be £7.8 billion at April 2015
● Good performance for customers:
○ Lowest average combined bills in the land for 2014/15
○ Committed to launching new and enhanced social tariff scheme in April 2015
● Improving performance on many operational metrics – encouraging for new incentive regime starting April 2015
○ Leakage and sewer flooding reduced in first six months of this year
○ More to do in other areas
● Constructive dialogue continues with Ofwat ahead of final determination on 12 December
● Progressing well with plans to deliver the efficiencies required in AMP6
● Investing early: £15 million of AMP6 capex brought forward to second half of this year
Liv Garfield, Chief Executive Severn Trent Plc, said:
“I am pleased to report a good first half performance across the group, with underlying PBIT up 3.0% period on period and improving operational metrics.

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Our focus on customers continues; our average combined bill is the lowest in the land and we are confident of maintaining the lowest bills for the next 5 years; we continue to develop our range of social tariffs; and we have delivered further reductions in leakage and sewer flooding.

We have also delivered on our commitments to other stakeholders, with further reductions in pollution incidents and our interim dividend in line with our current policy.

As we draw to the close of the price review, we remain committed to maintaining a constructive dialogue with Ofwat. We have submitted our representations on the draft determination and believe we have addressed all its evidence requests.

Looking forward to AMP6, we are progressing with the organisational changes required to deliver our plan and we will bring forward additional capital investment to ensure we are in the best place possible to start the new regulatory period. The enthusiasm and passion I am witnessing in our people gives me every confidence that we will hit the ground running on 1st April next year.”
*h*More to follow…*h*

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