TIDMSVT
RNS Number : 9357N
Severn Trent PLC
04 February 2021
Severn Trent Plc
Trading Update for the period 1 October 2020 to 4 February
2021
Severn Trent Plc today announces a trading update for the period
to 4 February 2021.
Positive momentum carried through the winter
Severn Trent continues to deliver strong operational performance
and resilient financial results.
- Customer performance - We are committed to delivering the best
possible service to our customers and despite being set challenging
targets for this year we have invested wisely and worked tirelessly
to outperform. In Water we remain on track for our best ever
performance on a number of measures including the Compliance Risk
Index and water quality complaints. In Waste we have started the
AMP(1) strongly with 25% fewer blockages and a 15% reduction in
pollutions in the calendar year. Our biodiversity programme is on
track to deliver over 2,200ha of enhanced natural environment,
delivering our five-year target in the first year of the AMP(1)
.
We remain on or ahead of target for almost 80% of our customer
performance measures and so we are pleased to increase our guidance
for outperformance on Customer ODIs(2) this year from 'at least
GBP25 million' to 'at least GBP50 million'.
- Stable outlook for the full year - We remain confident of
delivering our full-year results in line with expectations and
prior guidance. The Severn Trent Plc Board confirms this year's
final dividend in line with our AMP7(1) policy.
Green Recovery investment opportunity
We are in constructive dialogue with Ofwat and DEFRA on
potential investment opportunities for Severn Trent as part of the
Government's Green Recovery initiative. We submitted a number of
proposals(3) on 31 January and look forward to continuing our
discussions during the review process, which we expect to conclude
by September 2021. As well as providing meaningful RCV(4) growth on
top of our c.4% growth rate for AMP7(1) , we believe our proposals
would support our environmental ambitions, create much needed jobs
in our region and support national sustainability objectives on
climate change, flood resilience, river water quality and water
consumption.
Supporting Net Zero and nature
We are proud to be supporting the UN Race to Net Zero campaign
through our Triple Carbon Pledge. We continue to make good progress
and will give more detail on our journey to net zero at our Capital
Markets Day later this year. Our approach to long-term
sustainability has always placed nature and our communities at its
core and so we are pleased to add our support to the recently
launched Terra Carta charter putting nature, people and planet at
the heart of creating value.
Ongoing support for our community
The challenges currently facing our customers and communities as
a result of the pandemic are never far from our thoughts. To date
we have helped more than 120,000 customers who are struggling to
pay their bills and we are providing a range of flexible schemes to
support them as their circumstances change. More broadly, we
continue to support local projects, with GBP2.4 million now awarded
to 384 community organisations to help where it is needed most. At
our half-year results we announced our ambitious plans to support
the Government Kickstart Scheme with 500 opportunities, and we are
pleased to announce that we welcomed our first cohort of Kickstarts
into the business in January 2021.
Financial calendar
Full-year results - Severn Trent's annual results presentation
will take place on 26 May 2021.
Capital Markets Day - Severn Trent will be hosting a Capital
Market Markets Day on 24 September 2021.
Enquiries
Investors & Analysts
Rich Eadie Severn Trent Plc +44 (0) 7889 806578
Head of Investor Relations & Sustainability
Selina Soma Severn Trent Plc +44 (0) 7976 938604
Investor Relations Manager
Media
Jonathan Sibun Tulchan Communications +44 (0) 207 353 4200
Press Office Severn Trent Plc +44 (0) 247 771 5640
Footnotes
1. Asset Management Plan (AMP) - Price limit periods are
sometimes known as AMP (Asset Management Plan) periods. The current
period is known as AMP7 (2020-2025) because it is the seventh cycle
since the water industry was privatised in 1989.
2. Customer ODI (Outcome Delivery Incentive) - A framework made
up of outcomes, measures, targets and incentives which provides
companies with rewards for achieving stretching performance targets
and compensates customers if performance is below performance
targets. Figures are quoted pre-tax in 2017/18 prices.
3. Further detail on our Green Recovery proposals can be found https://www.stwater.co.uk/regulatory-library/regulatory-library-documents/ .
4. Regulatory Capital Value (RCV) - The RCV is the capital base
used in setting price limits. It is used to represent the value of
our regulated business on which our investors can earn a return.
Our RCV growth rate for the five-year AMP7 period is 3.78% per our
Final Determination. Quoted in 2017/18 prices.
Cautionary statement regarding forward-looking statements
This document contains statements that are, or may be deemed to
be, 'forward-looking statements' with respect to Severn Trent's
financial condition, results of operations and business and certain
of Severn Trent's plans and objectives with respect to these
items.
Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would',
'should', 'expects', 'believes', 'intends', 'plans', 'projects',
'potential', 'reasonably possible', 'targets', 'goal', 'estimates'
or words with a similar meaning, and, in each case, their negative
or other variations or comparable terminology. Any forward-looking
statements in this document are based on Severn Trent's current
expectations and, by their very nature, forward-looking statements
are inherently unpredictable, speculative and involve risk and
uncertainty because they relate to events and depend on
circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future
performance and no assurances can be given that the forward-looking
statements in this document will be realised. There are a number of
factors, many of which are beyond Severn Trent's control that could
cause actual results, performance and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to: the
Principal Risks disclosed in our latest Annual Report and Accounts
(which have not been updated since the date of its publication);
changes in the economies and markets in which the group operates;
changes in the regulatory and competition frameworks in which the
group operates; the impact of legal or other proceedings against or
which affect the group; and changes in interest and exchange
rates.
All written or verbal forward-looking statements, made in this
document or made subsequently, which are attributable to Severn
Trent or any other member of the group or persons acting on their
behalf are expressly qualified in their entirety by the factors
referred to above. No assurances can be given that the
forward-looking statements in this document will be realised. This
document speaks as at the date of publication. Save as required by
applicable laws and regulations, Severn Trent does not intend to
update any forward-looking statements and does not undertake any
obligation to do so. Past performance of securities of Severn Trent
Plc cannot be relied upon as a guide to the future performance of
securities of Severn Trent Plc.
Nothing in this document should be regarded as a profits
forecast.
This document is not an offer to sell, exchange or transfer any
securities of Severn Trent Plc or any of its subsidiaries and is
not soliciting an offer to purchase, exchange or transfer such
securities in any jurisdiction. Securities may not be offered, sold
or transferred in the United States absent registration or an
applicable exemption from the registration requirements of the US
Securities Act of 1933 (as amended).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTTJMMTMTTMTIB
(END) Dow Jones Newswires
February 04, 2021 02:00 ET (07:00 GMT)
Severn Trent (LSE:SVT)
Historical Stock Chart
From Jun 2024 to Jul 2024
Severn Trent (LSE:SVT)
Historical Stock Chart
From Jul 2023 to Jul 2024