Highlights
- Maintaining the lowest combined water and waste water bills for our customers
- No usage restrictions in the Severn Trent Water region forecast for this year
- Leakage reduced by 7% year on year to a record low level, and below Ofwat target
- Severn Trent Water operating expenditure below level assumed in Ofwat's Final Determination
- Additional investment of 150 million in Severn Trent Water's networks over the next 3 years to enhance security and resilience for our customers, on top of 1.6 billion previously planned
- Proposed capital return of 150 million to shareholders maintains an efficient and sustainable balance sheet with a strong investment grade credit rating
|
31 March 2012 (m) |
31 March 2011 (m) |
Increase/ (decrease) % |
|
|
Group turnover |
1,770.6 |
1,711.3 |
3.5% |
|
Underlying group PBIT1 |
504.2 |
519.1 |
(2.9%) |
|
Underlying group profit before tax2 |
275.3 |
288.6 |
(4.6%) |
|
Profit before tax3 |
156.7 |
253.0 |
(38.1%) |
|
|
|
|
|
|
pence/share |
pence/share |
|
|
|
Adjusted basic eps4 |
88.9 |
105.6 |
(15.8%) |
|
Basic earnings/(loss) per share5 |
72.5 |
115.2 |
(37.1%) |
|
Total ordinary dividends |
70.10 |
65.09 |
7.7% |
|
Special dividend |
63.00 |
- |
|
Notes:
|
1 |
before exceptional items (see note 3) |
|
2 |
before exceptional items and losses on financial instruments |
|
3 |
includes losses on financial instruments of 67.7 million (2011: losses of 14.2 million) |
|
4 |
before exceptional items, losses on financial instruments and deferred tax |
|
5 |
after exceptional deferred tax credit of 29.2 pence per share (2011: credit of 28.6 pence per share) |
Tony Wray, Chief Executive Severn Trent Plc, said:
"During the period we have delivered on our commitments to our stakeholders. We have beaten our leakage target, reduced supply interruptions, continue to forecast no water usage restrictions for our region this year and we maintained the lowest average charges for our customers.
We delivered stable underlying PBIT in Severn Trent Water, despite incurring additional network investment costs, new costs such as private drains and sewers and the new Carbon Reduction Commitment levy. In aggregate these added over 40 million to our cost base year on year.
Our ability to achieve this performance is due to the great work our people have put in over the last 3 years and the productivity and capital efficiency improvements that have been delivered.
At Severn Trent Services, whilst activity levels have started to improve, full year performance was down.
For the group as a whole, our strong balance sheet and investment grade credit rating enable us to share that benefit with our customers and investors by increasing our investment programme in our water and waste water networks by 150 million,to improve further our services to customers, and return an additional 150 million to our shareholders."
