Severn Trent share price: full-year profit slides

on May 22, 2015
Updated: Oct 21, 2019
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Severn Trent Plc (LON:SVT) today announced full year results for the twelve months ended March 31. The water services company logged a strong underlying performance, while results on a reported basis had slumped. The company also said that it is “in the best possible shape for AMP6.” (Asset Management Period 6, or AMP6, is the five year period that begins in 2015 and continues through to 2020)

Severn Trent’s share price had shed 0.68 percent to 2,167.20p as of 08:33 BST today, underperforming the FTSE 100 blue chip benchmark which had climbed about 0.5 percent. The company’s stock is still near its all-time peak of 2205p reached in late January and is up about 12 percent on an annual basis.
Severn Trent revealed full year reported-basis pretax profit of £148.2 million, down more than 53 percent on an annual basis, while net reported profit slipped 72 percent to £120.2 million.
Underlying results clocked a much better set of figures, with pretax profit climbing 8.8 percent to £300.4 million, while group turnover increased 2.5 percent to £1,801.3 million.
“I am pleased to have closed out AMP5 with a good all round performance,” Severn Trent’s chief executive Liv Garfield commented. “We’ve made some significant cultural and operational changes to get our business in the best possible shape for AMP6.”
The group confirmed that it is commencing its largest ever five year expenditure programme, totalling £6.2 billion in AMP6, “despite one of the toughest price settlements in our history.”
Ofwat’s final average bill changes determination ruled that Severn’s customers will see their bills drop five percent in AMP6, excluding inflation, to £316, which is the lowest in the industry and more than 10 percent below the second-lowest.
For the current financial year, Severn confirmed plans to issue dividend of 80.66p, down from the 84.90p reported for 2014/2015 today. The company will issue a Q1 trading update on the day of its annual general meeting on July 15.
As of 09:28 BST, Friday, 22 May, Severn Trent Plc share price is 2,168.50p.

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