TIDMSVT
RNS Number : 0681B
Severn Trent PLC
28 January 2020
28 January 2020
Severn Trent Plc
Q3 Trading Update and AMP7 Dividend Policy
Severn Trent Plc today announces its Q3 trading update and a new
dividend policy for the next five years:
-- There have been no material changes to performance or outlook for the year 2019/20.
-- Severn Trent Water accepts its Final Determination for the period 2020-2025.
-- An AMP7 dividend policy with a growth rate of at least CPIH.
Trading update for the period 1 October 2019 to 28 January
2020
We continue to benefit from the efficiencies we have delivered
in AMP6, putting us on the right cost run rates for AMP7. Our
capital programme is now in its final stages with the Birmingham
Resilience Programme due to complete construction in March.
Overall, we remain on track to deliver at least GBP25 million in
customer ODI net outperformance payments for the year. This will
take the total amount deferred to AMP7 revenue to at least GBP177
million in nominal prices.
We continue to deliver improvements in our operational water
measures and the work we are doing to enhance our local environment
through the Water Framework Directive is progressing well. As
anticipated, the significantly more stretching targets we agreed
with Ofwat for our flooding measures have been challenging and we
expect penalties on some of these to partially offset
outperformance in other areas.
PR19 Final Determination
Following a detailed review, the Board of Severn Trent Water
Limited has decided to accept the Final Determination for the
period 2020-2025, published by Ofwat on 16 December 2019.
This decision has been made taking into consideration:
-- The 'in the round' approach taken by Ofwat;
-- A totex allowance for the next five years of GBP6.8 billion -
in line with our PR19 business plan;
-- Our stretching but achievable suite of customer ODIs, such as
a 15% reduction in leakage, 5% reduction in blockages, and helping
200,000 customers a year to pay their bill by 2025; and
-- An expected RCV real growth rate of 3.8%, creating long-term value for our shareholders.
AMP7 dividend policy
The Severn Trent Plc Board has reviewed the Final Determination
alongside current performance and, taken together with other market
considerations, is pleased to announce that the dividend policy for
AMP7 will be growth of at least CPIH. Based on the FY19/20 dividend
of 100.08p, the dividend for FY20/21 is therefore expected to be
101.58p, using CPIH of 1.50%(1) .
Webcast
We will be holding a short presentation and Q&A at 13:00 GMT
today, with Liv Garfield, Chief Executive, James Bowling, Chief
Financial Officer, and Shane Anderson, Head of Economic
Regulation.
To access the webcast online, please follow the link:
https://edge.media-server.com/mmc/p/mvujwi5f
If you are unable to access the webcast, you will find the
presentation on our website (severntrent.com) and conference call
details are as follows:
-- UK Dial-In: 08003767425
-- International Dial-In: +44 (0) 203 0095710
-- Conference ID: 5483307
(1) Based on November 2019 CPIH as reported by the Office of
National Statistics.
Financial calendar
Q3 Trading Update - This announcement is in place of the Q3
trading update scheduled on 5 February 2020. There will no longer
be a scheduled announcement on this day.
Capital Markets Day - Centred on delivering a sustainable
future, this Capital Markets Day will be held at Severn Trent
Centre, Coventry, on 4 March 2020. Please RSVP to
investorrelations@severntrent.co.uk.
Full year results - The Severn Trent annual results presentation
will take place on 20 May 2020 at the earlier time of 8.30am. Full
details will be circulated in due course.
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
TSTPPUAPGUPUGMM
(END) Dow Jones Newswires
January 28, 2020 02:00 ET (07:00 GMT)
Grafico Azioni Severn Trent (LSE:SVT)
Storico
Da Mar 2024 a Apr 2024
Grafico Azioni Severn Trent (LSE:SVT)
Storico
Da Apr 2023 a Apr 2024