15th Jul 2020 08:39
(Alliance News) - Severn Trent PLC on Wednesday said its first-quarter performance has been in line with expectations and the company continues to expect trading for the year ending March 31, 2021, to be consistent with prior guidance.
Shares in the FTSE 100-listed company were up 0.3% at 2,391.00 pence each in London.
The Coventry-based water company said its AMP7 asset management and business plan remains unchanged as it benefits from the clarity of a finalised regulatory settlement. The AMP7 business plan runs from 2020 to 2025.
The company has already contracted 80% of its year one capital programme under the AMP7 plan and remains on track to invest GBP430 million to GBP510 million this year in infrastructure.
Severn Trent continues to guide a GBP50 million to GBP85 million hit to financial 2021 revenue from the Covid-19 pandemic and said the Ofwat regulatory model allows this to be recovered in 2022-23.
"We have been encouraged by cash collections broadly in line with the same period a year ago, but continue to anticipate Covid-19 bad debt increases in line with guidance previously given as government support schemes come to an end," the company warned however.
By Tapan Panchal; [email protected]
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