Severn Trent on track to deliver full-year trading expectations
Water and wastewater company Severn Trent said it made a “good start” to the financial year in a trading update on Wednesday, adding that there had been no material change to current year business performance or outlook since its full-year results in May.
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The FTSE 100 company’s board said it was still expecting that the group would deliver full-year trading performance, in-line with its expectations and prior guidance.
It said it remained on track to deliver at least £25m in customer outcome delivery incentive outperformance payments in the current year, explaining that its customers were seeing “continued improvement” in the areas that “matter most to them”.
“We are progressing well with key end of asset management period outcome delivery incentives, with Water Framework Directive schemes set to deliver 1,600 kilometres of improvements to rivers in AMP6,” the board said in its statement.
Looking at its energy self-generation, Severn Trent said that in the first three months of the fiscal year it generated 123 gigawatt hours from its own renewable sources, equivalent to 52% of its energy needs, positioning the company on the right run rate to exceed its 50% target for the year.
The board said that was an important step in its triple carbon pledge for 2030 - 20 years ahead of the recent government commitment.
Looking at its asset management period 7 (AMP7) capital delivery strategy, the firm said earlier in the month, it announced further supplier partnerships for its capital programme.
It had now recruited around 50% of its in-house capital design team, ready for a “fast start” to AMP7.
The company’s raw water resources were said to be in a “healthy position” as it headed into the summer period, with its overall storage around 10% higher than the same time last year.
“We expect Ofwat to publish a PR19 update, including the draft determination for Hafren Dyfrdwy, on 18 July,” the board explained.
“We will provide a further announcement to the market as appropriate.”