20th May 2020 09:25
(Alliance News) - Severn Trent PLC on Wednesday reported a profit decline on higher expenses and for financial 2020 despite a considerable rise in revenue.
Shares in the FTSE 100-listed water company were trading 2.0% higher at 2,451.00 pence each on Wednesday morning in London.
For its financial year ended March 31, Severn posted revenue of GBP1.84 billion, up 4.3% from GBP1.77 billion reported the year prior. Pretax profit however, was 19% lower at GBP310.7 million, compared to GBP384.7 million recorded for financial 2019.
Operating costs were GBP1.28 billion, up from GBP1.22 billion the previous year. The company also recorded GBP46.8 million as its share of the net loss of joint ventures, versus just GBP400,000 the year before, and provided GBP4.9 million against a loan in relation to its joint venture, Water Plus.
Severn Trent also took a GBP17.4 million net loss on financial instruments, versus a GBP16.0 million gain the year before.
Severn Trent declared a final dividend of 60.05 pence, up 7.2% from 56.02p a year before, taking the total annual payout to 100.08p, also up 7.2% from 93.37p.
By division, Regulated Water and Waste Water revenue increased by 2.4% to GBP1.62 billion, mainly due to tariff increases. Business Services' turnover increased by 19.7% to GBP240.4 million.
Looking ahead, Chief Executive Liv Garfield said: "We remain on track to deliver improvements across a range of measures. The work we have done over 2015 to 2020 in tightening our cost base means we are confident we can deliver improved services within our allowed 2020 - 2025 total expenditure. Our capital programme is on track, with 80% of year one work contracted."
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Severn Trent