20th Nov 2024 08:06
(Alliance News) - Severn Trent PLC on Wednesday reported strong growth in the first half with the company on track to deliver its largest annual investment programme to improve operations and meet regulatory requirements.
The Coventry, England-based water company said pretax profit on ordinary activities more than doubled to GBP192.3 million in the first half ended September 30 from GBP70.7 million the previous year.
Diluted earnings per share was 47.1 pence, up from 20.4p.
Revenue rose 4.5% to GBP1.22 billion from GBP1.17 billion as total operating costs grew 1.1% to GBP920.3 million from GBP910.2 million.
Severn Trent raised its interim dividend by 4.2% to 48.68p from 46.74p.
Chief Executive Officer Liv Garfield said: "I am proud of what we have delivered for customers, hitting our targets on leakage and blockages while also achieving the highest 4* status from the Environment Agency in each of the last five years.
"The outstanding rating we received for our plan gives us visibility and confidence to make a fast start on the biggest investment programme in our history. We are implementing the sector's most ambitious storm overflow improvement plan at pace, while also creating 7,000 jobs across our region, including a new 440-strong team of experts dedicated to our water pipe replacement programme."
Severn Trent is on track for its highest-ever year of capital investment with the company targeting the upper end of its GBP1.3 to GBP1.5 billion guidance range. In the first half, capital investment was up 40% on-year at GBP665.9 million from GBP476.9 million.
The company installed 900 solutions on storm overflows with average spills expected to be below 18 for the year 2025.
Current borrowings reduced 63% to GBP25.1 million by September 30 from GBP67.9 million on March 31. Over the same period, non-current borrowings grew 7.3% to GBP8.79 billion from GBP8.20 billion.
Looking ahead the company expects turnover to be higher in full-year financial 2025, improving from GBP2.15 billion in the year prior. Meanwhile, falling energy costs are anticipated to drive a reduction in operating costs, partly offset by inflation cost increases.
Severn Trent shares were 0.6% higher at 2,705.00 pence each in London early on Wednesday morning.
By Elijah Dale, Alliance News reporter
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