Severn Trent Share Price (SVT)

SVT - Severn Trent Investor Summary

Severn Trent PLC is the parent company of Severn Trent Water. The origins of the company are derived from the history of water management and supply and waste water treatment. This has always been characterised by a struggle between private and public ownership which was not resolved until the Water Act (1973) which divided the many companies into just ten water authorities including Severn Trent which was sold and privatised in the mid 80's for a cash injection. Severn Trent PLC was born and soon began to grow and develop and in 1991 extended the group portfolio with the huge acquisition of the UK's biggest single supplier of waste management, Biffa. They also expanded outside the UK and acquired Capital Controls, a US company in 1991. They have also built up a number of companies in Europe which test, measure, analyse, deliver and protect water.

In addition to this the company has a stable customer base and a number of resources. They own several reservoirs for example. They have also taken over two water authorities and several public sector water supplies including plenty in the Mid Wales and the Midlands.

Their entire portfolio of companies still includes Severn Trent Water, Severn Trent Laboratories and Severn Trent services. They also have a large customer base in Britain with some 3.7 million households being supplied water and provided with waste services. While Biffa has been demerged (2007) and is listed separately on the stock exchange the other companies, resources and loyal customer base remain making the reasonable share prices which continue a steady rise a sensible investment.