11th Feb 2026 09:36
(Alliance News) - Severn Trent PLC on Wednesday reported trading in line with expectations, and suggested regulation of the UK water industry was headed "in the right direction".
The Coventry, England-based utility noted "strong momentum" in financial 2026, which ends on March 31, and marks the first of five years in the typical planning cycle followed by British water companies.
Severn Trent expects this to be its "highest-ever year" of capital investment, which is seen at the top end of guidance ranging from GBP1.7 billion to GBP1.9 billion.
The company plans to meet performance and reward-related targets for the year, by reaching a minimum of GBP40 million in outcome delivery incentives and price control deliverable performance.
James Jesic, who was promoted to chief executive last month, commented: "This has been a quarter of delivery in a period of strong growth, and I am proud of the contributions of the whole team.
"With our capital programme well underway, we remain on track to deliver on environmental targets and meet the financial guidance set out at our interim results."
The company in November had forecast doubling its adjusted earnings per share through to financial 2028 from 112.1 pence in financial 2025.
Jesic continued: "We have welcomed the government's white paper as a step in the right direction and look forward to further clarity on timing and implementation in the transition plan expected later this year."
Back in May 2025, the Water Services Regulation Authority or Ofwat, which regulates the privatised tap water and sewerage industry in England and Wales, said customers of Severn Trent will face higher bills, starting January 2026.
The average customer's bill is set to increase by 47% over five years, to GBP583 in 2029-30 from GBP398 in 2024-25. Severn Trent had proposed a 54% increase to GBP612.
The company will publish financial 2026 results on May 20, and hold its annual general meeting on July 9.
Severn Trent shares edged up 0.7% to 3,034.00 pence on Wednesday morning in London.
By Holly Munks, Alliance News reporter
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