20th Jul 2016 06:25
LONDON (Alliance News) - Severn Trent PLC on Wednesday said it has made "no material change" to its expectations for its financial year to March 2017 and remains confident that its results will meet expectations.
The FTSE 100-listed water and wastewater firm said it is continuing to make "good progress" during the current regulatory period, focusing on improving its customer service alongside its operational and financial performance. Severn Trent said it should deliver "targeted efficiency savings" this year.
"Elsewhere for the group, there has been no material change to current year business performance or outlook since the full-year 2015/16 results on 24 May 2016. The board considers that the group will deliver trading performance consistent with its expectations and prior guidance," said Severn Trent.
The company also said that it has continued to advance the joint venture signed with fellow London-listed United Utilities signed earlier this year. The UK Competition & Markets Authority approved the venture in May, and Severn Trent advised that the current financial year will include two months of discontinued operations for non-household retail operations and 10 months of the company's 50% share of the venture.
Severn Trent and United Utilities struck the joint venture agreement to combine their their non-household water and waste-water retail businesses in March, with the combined business to primarily comprise of billing and customer service activities and located in Stoke-on-Trent.
The venture will be called Water Plus and is expected deliver synergies to provide an efficient and cost-effective business focused on improved customer services and growth.
By Joshua Warner; [email protected]; @JoshAlliance
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