28th Jan 2020 08:54
(Alliance News) - Severn Trent PLC on Tuesday retained its outlook for the year ending March 31 and said it expects to increase dividends in line with consumer price index for the five-year period from 2020 to 2025.
The FTSE 100-listed water utility firm said it continues to benefit from the efficiencies it has delivered in sixth Asset Management Plan AMP6, putting the company on the right cost run rates for the seventh Asset Management Plan AMP7.
The company said it has decided to accept the final price and service plan for the 2020 to 2025 period, set by UK Water Services Regulation Authority. The company said the decision has been made by taking into account the total expenditure allowance for the next five years of GBP6.8 billion and its "stretching, but achievable" suit of customers desired outcome.
Severn Trent expects to pay 101.58 pence per share in dividend for the year ending March 31, 2021, up from 100.08p set for financial 2020, using consumer price index of 1.50%.
"As anticipated, the significantly more stretching targets we agreed with Ofwat for our flooding measures have been challenging and we expect penalties on some of these to partially offset outperformance in other areas," the company said.
Severn Trent shares were trading 0.4% higher in London at 2,590.00 pence each on Tuesday morning.
By Loreta Juodagalvyte; [email protected]
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