26th Nov 2013 08:50
LONDON (Alliance News) - Severn Trent PLC said Tuesday it was on track to deliver on its full-year expectations, reporting increases in profit and turnover for the half-year period.
The UK water provider said group turnover rose 0.5% to GBP922.4 million, up from a restated GBP917.7 million last year. Group profit before tax increased to GBP191.2 million from GBP113.4 million in 2012.
Underlying group profit before tax was down 5.8% to GBP141.3 million from GBP150 million the previous year.
Profit attributable to equityholders of the company climbed to GBP344.9 million from GBP116.9 million, while earnings per share increased to 144.5 pence from 49.0 pence.
The board declared an interim ordinary dividend of 32.16 pence per share, up 6% from last year, which will be paid on January 10, 2014 to shareholders on the register at December 6 2013.
In its report for the six months to September 30 2013, Severn Trent said its financial results are in line to deliver full-year expectations. The company said that it has enforced a below inflation bill for customers this year as it worked to stabilise its bad debt portfolio.
During the year the firm has worked on the implementation of its GBP150 million investment programme for service improvements for customers, with GBP91 million invested to date.
During the period, Severn Trent Water invested GBP269 million in capital projects, an increase of 12.5%, resulting in improved performance in serious pollution incidents, supply interruptions and sewer flooding, a key priority for this year while customer satisfaction, as measured by the SIM (Service Incentive Mechanism), continues to rise. The firm adds that its KPIs from water utilities regulator, Ofwat, are in the upper quartile in the 2012/2013 year, up on last year.
Tony Wray, Chief Executive Severn Trent, said, "Many customers are facing serious cost of living pressures and we aim to keep bills to the minimum with below inflation rises across the current regulatory period and help for customers through our range of social tariffs. We remain committed to keeping customers' bills down and to sharing the benefits of success with them."
Wray added that the firm is close to finalisation of its business plan for AMP6, following an extensive research programme involving 15,000 customers. The plan is set for submission by December 2 and will, "reflect our customers' priorities and strike the right balance between affordability, investment to maintain and improve our service and environmental standards, and appropriate returns for shareholders."
Shares in the utility provider were trading down 0.62% at 1,774 pence per share Tuesday morning.
By Alice Attwood; [email protected]; @AliceAtAlliance
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