Rise in profits for Severn Trent

Utility giant Severn Trent has reported a rise in full-year profits after the firm was boosted by fewer leaks and floodings.
By The Newsroom
Published 23rd May 2017, 10:09 BST
Updated 4th Jun 2017, 21:27 BST
A view of the information screens at the London Stock Exchange in the City of London Photo: Yui Mok/PA WireA view of the information screens at the London Stock Exchange in the City of London Photo: Yui Mok/PA Wire
A view of the information screens at the London Stock Exchange in the City of London Photo: Yui Mok/PA Wire

Britain’s biggest listed water company said underlying pre-tax profit rose 4.3% to £525 million in the year to March as turnover increased 3.7% to £1.8 billion.

Severn Trent, which claims to have the lowest combined average bills in Britain at £341 per year, added it has seen a reduction in sewer floodings, supply interruptions and leakages following £680 million of investment.

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The group’s full-year net customer outcome delivery incentive reward, doled out for meeting targets such as improving customer service, was £47.6 million.

Severn Trent also said total efficiency savings will now total £770 million by 2020, up £100 million.

Chief executive Liv Garfield said: “We are delivering both strong customer-focused and financial outperformance this regulatory period,

and we feel it is now appropriate to share this with our investors.

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“The board is therefore pleased to announce an upgrade to our ordinary dividend policy, to growth of at least RPI +4%.”

The company proposed a final dividend of 48.9p, taking the full-year dividend to 81.5p.

Shares rose 2% to 2.498p in morning trading.