Highlights
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Financial results in line to deliver full year expectations |
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Additional 150 million investment programme already delivering operational improvements to the benefit of customers |
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Leakage, pollution incidents and SIM score all improving* |
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On track to deliver improved serviceability for water distribution network and improvement in Ofwat KPI performance for this year |
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Non-regulated part of the group showing a positive trend |
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Responded to Ofwat proposed licence modifications with constructive suggestions to reduce uncertainty
Tony Wray, Chief Executive Severn Trent Plc, said: "We have delivered again on our commitments to our stakeholders, we are on track with our 150 million additional investment programme announced in May, delivering operational improvements in the areas we targeted for this year, improving our service to customers and producing sustainable, progressive returns for shareholders. Group revenue was up 3.6% period on period, although underlying group PBIT was down, reflecting planned increased investment in our networks and customer service in Severn Trent Water. In the first half Severn Trent Water invested 239 million and the benefits of this investment are evident in our operational improvements, with leakage and pollution incidents decreasing while customer satisfaction, as measured by the SIM (Service Incentive Mechanism), is improving. In our non-regulated business we are encouraged by the initial performance of our new business Severn Trent Costain, as well as the improvement in our existing Products business. On the regulatory front, we remain in favour of the broader reform programme for the water industry, and have made some constructive suggestions to overcome concerns regarding Ofwat's proposed changes to licences, in order reduce uncertainty for the benefit of all stakeholders. We will continue to promote constructive debate on what the future regulatory framework should look like." |
