Severn Trent announce proposed final dividend of 60.95 pence, bringing full year dividend to 101.58 pence

DividendMax Ltd.

Severn Trent announce proposed final dividend of 60.95 pence, bringing full year dividend to 101.58 pence

In line with their policy for AMP7 to increase the dividend by at least CPIH each year, the Severn Trent Board has proposed a final ordinary dividend of 60.95 pence per share for 2020/21 (2019/20: 60.05 pence per share). This gives a total ordinary dividend for the year of 101.58 pence (2018/19: 100.08 pence).

Other financial highlights include:

The final ordinary dividend is payable on 16 July 2021 to shareholders on the register at 28 May 2021.

Group turnover of £1,827 million, down 0.9%, with c.£50 million net impact of lower consumption due to COVID-19 lockdowns, the regulatory model allows us to recover this later in the AMP

Adjusted PBIT of £473 million, in line with expectations, down 17.1% as a result of PR19 rebasing of tariffs, the net impact of COVID-19 on consumption and additional investment to drive their customer ODI performance. Reported PBIT of £471 million (2020: £568 million)

Strong household cash collection, up £61 million (5.2%) year-on-year, helping reduce bad debt charge to 3.0% of household revenue

Effective interest cost reduced 30 bps to 3.4%; RCF refinanced through their Sustainable Finance Framework; sufficient liquidity through to December 2022

Adjusted basic EPS at 105.4 pence and basic EPS at 89.1 pence, in line with expectations

Companies mentioned