There have been no material changes to performance or outlook for the year 2019/20.
An AMP7 dividend policy with a growth rate of at least CPIH.
Trading update for the period
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
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
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
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 andAn 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
To access the webcast online, please follow the link: https://edge.media-server.com/mmc/p/mvujwi5f
Financial calendar
Q3 Trading Update - This announcement is in place of the Q3 trading update scheduled on
Capital Markets Day - Centred on delivering a sustainable future, this Capital Markets Day will be held at Severn Trent Centre,
Full year results - The Severn Trent annual results presentation will take place on
Contact:
Tel: +44 (0) 7889 806578
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
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
(C) 2020 Electronic News Publishing, source