Highlights
|
● |
Financial results in line to deliver full year expectations |
|
● |
Below inflation bill increase for customers this year - Severn Trent remains lowest average combined bill in England and Wales |
|
● |
Operating costs for adoption of PDaS, up to an estimated £41 million in total over the current regulatory period, being absorbed by Severn Trent Water |
|
● |
Customer service, sewer flooding and supply interruptions all improving. 8 Ofwat KPIs in upper quartile (vs. 4 in prior year) |
|
● |
Additional £150 million investment programme continuing to deliver service improvements for the benefit of customers - £91 million invested to date |
|
● |
Estimated RCV at September 2013 £7,511 million, on track to reach £8 billion by March 2015 |
|
● |
Bad debt stable and amongst lowest in industry, with a range of Severn Trent social tariffs to help customers |
|
● |
Maintained underlying group PBIT despite rising power costs whilst delivering service improvements; interim dividend growth in line with policy |
|
● |
Completed extensive stakeholder engagement programme as part of Business Plan for next regulatory period, AMP6 - on track to submit plan to Ofwat by 2 December |
|
● |
New CEO announced - Liv Garfield to join Severn Trent in Spring 2014 |
Group results
|
Underlying performance |
2013 |
2012 |
Increase/ |
|
Six months ended 30 September |
|
Restated |
(Decrease) |
|
|
£m |
£m |
% |
|
Group turnover |
922.4 |
917.7 |
0.5% |
|
Underlying group PBIT |
266.9 |
265.9 |
0.4% |
|
Underlying group profit before tax |
141.3 |
150.0 |
(5.8%) |
|
|
|
|
|
|
|
pence/ |
pence/ |
|
|
|
share |
share |
|
|
Adjusted basic EPS |
46.7 |
45.8 |
2.0% |
|
Interim dividend declared |
32.16 |
30.34 |
6.0% |
|
Reported results |
2013 |
2012 |
Increase/ |
|
Six months ended 30 September |
|
Restated |
(Decrease) |
|
|
£m |
£m |
% |
|
Group PBIT |
255.7 |
267.0 |
(4.2%) |
|
Group profit before tax |
191.2 |
113.4 |
68.6% |
|
Group profit for the period |
344.8 |
118.1 |
192.0% |
|
|
|
|
|
|
|
pence/ |
pence/ |
|
|
|
share |
share |
|
|
Basic earnings per share |
145.0 |
49.2 |
194.7% |
Tony Wray, Chief Executive Severn Trent Plc, said:
"We have delivered again on our commitments to our stakeholders, with below inflation rises in customer bills, further investment to deliver operational improvements, higher levels of service to customers and sustainable, progressive returns for shareholders with the interim dividend growing in line with our policy.
Many customers are facing serious cost of living pressures and we aim to keep bills to the minimum with below inflation rises across the current regulatory period and help for customers through our range of social tariffs. We remain committed to keeping customers' bills down and to sharing the benefits of success with them.
In the first six months Severn Trent Water invested £269 million in capital projects, an increase of 12.5%, resulting in improved performance in serious pollution incidents, supply interruptions and sewer flooding, a key priority for this year while customer satisfaction, as measured by the SIM (Service Incentive Mechanism), continues to rise.
We are close to finalising our Business Plan for AMP6, after a comprehensive, 18 month stakeholder engagement programme, which involved around 15,000 customers in research and 25 meetings of the Severn Trent Water Forum, our customer challenge panel.
Our Business Plan, to be submitted by 2 December, will reflect our customers' priorities and strike the right balance between affordability, investment to maintain and improve our service and environmental standards, and appropriate returns for shareholders.
Finally, I am delighted that Liv Garfield will be joining us next year as the new Chief Executive and I am looking forward to a seamless transfer of responsibilities and maintenance of Severn Trent's continuous improvement."
