Severn Trent Plc Trading
Update
Severn Trent Plc today announces the
following trading update for the period to 13 February
2024.
Continuing to deliver industry-leading operational and
environmental performance
We are confident we will retain four
star status in the Environment Agency's annual Environmental
Performance Assessment1 for a sector-leading fifth
consecutive year. Four star status is the highest rating
achievable, and includes zero serious pollution incidents in the
year.
We continue to guide to at least £50
million in ODI2 rewards this year, despite having
experienced ten named storms since September3,
contributing to the last six months of 2023 being the third wettest
for England on record4. This would take our total
cumulative rewards across the first four years of AMP75
to over £250 million, and reflects the c. £3 billion of capital
investment we have made during that period to improve service for
our customers and add further resilience to our network.
Our focus remains on both enhancing
our service for customers and also providing support for those who
are struggling to pay. To that end, we are now supporting around
250,000 of our most vulnerable customers through a range of
measures, including bill reductions. We remain on track to support
315,000 by the end of the AMP in 2025, and are planning to double
the number of customers we offer financial support to in
AMP8.
Robust financial performance in line with
expectations
There have been no material changes
to the current year business performance or outlook since the
interim results announcement on 22 November 2023.
Reporting and investor timetable
Stakeholders can find a range of
materials relating to our operations and future plans on our
website (www.severntrent.com),
including:
·
PR24 Business Plan
·
EU Taxonomy Disclosure
·
Capital Markets Day 2023
We welcome stakeholder feedback on
our reporting.
Full-year results - Severn Trent's
annual results presentation will be on 22 May 2024.
AGM - Severn Trent's Annual General
Meeting will be on 11 July 2024.
Footnotes
1.
Environmental Performance Assessment
(EPA)
This is the industry standard
measure of the environmental performance of water and sewerage
companies (WaSCs), and four star represents the highest rating
achievable. It uses measurable environmental indicators to provide
a meaningful comparison of performance across the nine WaSCs in
England. The 2022 assessment can be found at the following
link:
https://www.gov.uk/government/publications/water-and-sewerage-companies-in-england-environmental-performance-report-2022.
2.
Outcome Delivery Incentives
(ODIs)
A framework made up of outcomes,
measures, targets and incentives which provides companies with
rewards for achieving stretching performance targets and
compensates customers if performance is below performance targets.
Outcome Delivery Incentives are quoted pre-tax in 2017/18
prices. We assume a 25% rate of corporation
tax to be in place when ODIs are taken into
revenue.
3. Met Office UK Storm Centre
The named storms list runs from
September to August every year. The Met Office keep track of all
the named storms on their website, which can be found at the
following link:
UK Storm Centre - Met Office
4.
Environment Agency monthly water situation
report
Monthly water situation reports
published by the Environment Agency. The latest report for December
2023 can be found at the following link:
Water situation report England December 2023
(publishing.service.gov.uk)
5.
Asset Management Plan (AMP)
The regulatory cycle is broken up
into five year periods known as AMP (Asset Management Plan)
periods. The current period is known as AMP7 (2020-2025), and AMP8
refers to the next period of 1 April 2025 to 31 March 2030. The
PR24 business plan can be found at the following link:
Our plans
2025 - 2030 | About Us | Severn Trent Water
(stwater.co.uk)
Enquiries
Investors & Analysts
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Rachel Martin
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Severn Trent Plc
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+44 (0) 782 462 4011
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Head of Investor Relations
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Andy Farrell
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Severn Trent Plc
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+44 (0) 798 939 0825
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Investor Relations Manager
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Media
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Jonathan Sibun
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Teneo
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+44 (0) 207 353 4200
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Press Office
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Severn Trent Plc
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+44 (0) 247 771 5640
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Cautionary statement regarding forward-looking
statements
This document contains statements
that are, or may be deemed to be, 'forward-looking statements' with
respect to Severn Trent's financial condition, results of
operations and business and certain of Severn Trent's plans and
objectives with respect to these items.
Forward-looking statements are
sometimes, but not always, identified by their use of a date in the
future or such words as 'anticipates', 'aims', 'due', 'could',
'may', 'will', 'would', 'should', 'expects', 'believes', 'intends',
'plans', 'projects', 'potential', 'reasonably possible', 'targets',
'goal', 'estimates' or words with a similar meaning, and, in each
case, their negative or other variations or comparable terminology.
Any forward-looking statements in this document are based on Severn
Trent's current expectations and, by their very nature,
forward-looking statements are inherently unpredictable,
speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that may or may not occur in the
future.
Forward-looking statements are not
guarantees of future performance and no assurances can be given
that the forward-looking statements in this document will be
realised. There are a number of factors, many of which are beyond
Severn Trent's control that could cause actual results, performance
and developments to differ materially from those expressed or
implied by these forward-looking statements. These factors include,
but are not limited to: the Principal Risks disclosed in our latest
Annual Report and Accounts (which have not been updated since the
date of its publication); changes in the economies and markets in
which the group operates; changes in the regulatory and competition
frameworks in which the group operates; the impact of legal or
other proceedings against or which affect the group; and changes in
interest and exchange rates.
All written or verbal
forward-looking statements, made in this document or made
subsequently, which are attributable to Severn Trent or any other
member of the group or persons acting on their behalf are expressly
qualified in their entirety by the factors referred to above. The
final PR24 Business Plan is subject to approval by Ofwat and there
can be no assurance that the PR24 Business Plan will be approved,
in whole or in part, and, as a result, no assurances can be given
that the forward-looking statements in this document will be
realised. This document speaks as at the date of publication. Save
as required by applicable laws and regulations, Severn Trent does
not intend to update any forward-looking statements and does not
undertake any obligation to do so. Past performance of securities
of Severn Trent Plc cannot be relied upon as a guide to the future
performance of securities of Severn Trent Plc.
Nothing in this document should be
regarded as a profits forecast.
Certain information contained herein
is based on management estimates and Severn Trent's own internal
research. Management estimates have been made in good faith and
represent the current beliefs of applicable members of Severn
Trent's management. While those management members believe that
such estimates and research are reasonable and reliable, they, and
their underlying methodology and assumptions, have not been
verified by any independent source for accuracy or completeness and
are subject to change without notice, and, by their nature,
estimates may not be correct or complete. Accordingly, no
representation or warranty (express or implied) is given to any
recipient of this document that such estimates are correct or
complete.
This document is not an offer to
sell, exchange or transfer any securities of Severn Trent Plc or
any of its subsidiaries and is not soliciting an offer to purchase,
exchange or transfer such securities in any jurisdiction.
Securities may not be offered, sold or transferred in the United
States, absent registration or an applicable exemption from the
registration requirements of the US Securities Act of 1933 (as
amended).