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RNS Number : 0052T
Severn Trent PLC
15 July 2020
Severn Trent Plc Trading Update
Severn Trent Plc today announces the following update for the
period to 15 July 2020.
We have remained focused on taking care of one of life's
essentials through the unprecedented COVID-19 pandemic. Our
front-line key worker teams have kept customers' taps flowing as we
have continued to support our local communities. Overall, the first
quarter of the financial year has been in line with our
expectations, and the Board continues to expect that the Group will
deliver full-year trading performance consistent with prior
guidance. Our AMP7 plans remain unchanged as we benefit from the
clarity a finalised regulatory settlement brings.
We have not yet seen evidence that would change our initial
estimates for the impact of COVID-19. We continue to guide a GBP50
- GBP85 million negative impact to 2020/21 revenue, and the Ofwat
regulatory model allows this to be recovered in 2022/23. We have
been encouraged by cash collections broadly in line with the same
period a year ago, but continue to anticipate COVID-19 bad debt
increases in line with guidance previously given as government
support schemes come to an end. We will update the market at the
interim results on 26 November 2020 as we see more data on the
impact of COVID-19 on households and businesses.
AMP7 on track; good underlying performance
- Operational performance - We made a strong start to the year,
and remain confident of a net positive outcome on Customer
ODIs.
- Capital schemes - We entered AMP7 in a strong position with
80% of our year one capital programme contracted, and we have made
a fast start on delivering this, with minimal impact from COVID-19.
We are on track to invest GBP430 - GBP510 million this year in
infrastructure.
- Energy generation - Our Solar and Bioresource assets both
helped to increase renewable energy generation by 4% versus a year
ago to 127Gwh for the quarter.
- Financing - On 2 June 2020, we issued our inaugural
Sustainable Bond in Severn Trent Water, raising GBP300 million at a
fixed rate of 2% over 20 years. Our balance sheet remains strong
with committed facilities of GBP1.1 billion, all of which are
undrawn.
Supporting our communities
We remain committed to supporting our communities as they
recover from the impact of COVID-19, with essential funding,
practical support, job security and creation, and continued
infrastructure investment through local companies. To date:
- We have distributed GBP500k of our GBP1 million COVID-19
emergency fund to around 200 organisations.
- We have awarded nearly GBP700k from our new community fund to
39 projects across our patch, ranging from an eco-friendly
community space in Shropshire, to community health and wellbeing
projects.
- We have paid over GBP80 million to our small and medium suppliers on zero payment terms.
- In addition to upholding our pledge to not make anyone
redundant or furlough any of our staff as a result of COVID-19, we
re-emphasised our commitment to helping young adults leaving
education at this time, with 44 apprentices and 15 graduates
starting in September.
We have made significant strides in becoming a more sustainable
company in the past five years. As we continue on our
sustainability journey, we are incredibly proud to have been
recognised as one of the leading FTSE100 companies for our
commitment to sustainable business for the long term, recently
ranking second in the Responsibility100 Index(1) .
On 10 June 2020, alongside our Annual Report and Accounts, we
published our first ever stand-alone Sustainability Report, setting
out our sustainability strategies and ambitions and showcasing who
we are and what we stand for as a business. The full report can be
found here .
(1) The Responsibility100 Index is a ranking of the FTSE100
companies' social and environmental leadership, inspired by the UN
Sustainable Development Goals. The latest rankings can be found
here .
Enquiries
Investors & Analysts
Rich Eadie Severn Trent Plc +44 (0) 7889 806578
Head of Investor Relations
Rachel Martin Severn Trent Plc +44 (0) 7824 624011
Investor Relations Manager
Media
Jonathan Sibun Tulchan Communications +44 (0) 207 353 4200
Press Office Severn Trent Plc +44 (0) 247 771 5640
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. 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.
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).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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