22nd Nov 2018 08:26
LONDON (Alliance News) - Severn Trent PLC on Thursday reported a "good set of results" in the first half of its financial year with revenue and profit growth as it lifted its interim payout.
For the six months to September 30, the water utility posted pretax profit of GBP203.6 million, up 13% year-on-year from GBP180.9 million. Profit before interest, tax and exceptional items came in higher at GBP299.1 million from GBP295.0 million.
This was achieved on the back of revenue rising 3.6% to GBP881.5 million from GBP851.0 million mainly due to an increase in prices in the company's Regulated Water and Waste Water businesses.
"I'm pleased to be sharing a good set of financial and operational results in what has been a very busy first half of the year. The performance culture we have embedded into the organisation continues to deliver strong performance for our customers, also providing a great platform as we head into AMP7 [the period between 2020 and 2025]," Chief Executive Officer Liv Garfield said.
In the recent half, the "prolonged hot weather" in the UK during June and July created a "operationally challenging" environment, the company said. During those months, Severn Trent was hit by extra GBP10 million in costs to increase production and meet a 22% increase in customers demand.
"We expect to absorb a similar amount of cost in the second half of the year to support the operational recovery required from such an event," Garfield added.
The FTSE 100-listed firm is preparing for its "biggest year of capital spend in a decade" having invested more than GBP300 million just in the first half.
The water firm lifted its interim dividend by 7.9% to 37.35 pence per share from 34.63p in the comparative year ago period.
Severn Trent shares were trading down 3.1% at 1,855.50 pence each.
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