Severn Trent Plc
Capital Markets Day
Severn Trent Plc is today holding a capital markets day at its operations centre in Coventry to provide additional information on its business plan for the next 5 years.
As part of the presentation today the Company is providing a further update on efficiencies in Severn Trent Water, to prepare for the new 5 year regulatory period starting on 1 April. The Final Determination from Ofwat, published in December 2014, contained £372 million1 of efficiencies for the period 2015-2020 and the management team is confident of delivering on this challenge. This is based on plans already in place to deliver these efficiencies and the progress already made against them - £100 million has already been locked in over the 5 year period from re-negotiation of supplier contracts, along with the £100 million benefit from a new organisation structure previously announced in the trading update on 13 February. Together this equates to c.£200 million of efficiencies over the 5 year period.
In addition a £190 million investment in renewable energy will be announced. This investment will take place over the next 5 years principally in two technologies - anaerobic digestion and solar. This will take self generation of renewable energy from 28% of Severn Trent Water's gross energy consumption to around 50% by 2020. This will provide efficient green energy and a long-term hedge against volatile market prices.
Severn Trent Water is committed to its largest five year investment programme ever, including a capital investment programme of £3.3 billion1. Customers will continue to have the lowest combined average bills in the land until at least 2020. Severn Trent Water bills will fall in real terms over the next five years, by which time they will be around £60 below the industry average. Next year average bills will fall to £329, from £333. Severn Trent Water is also making provision to help four times as many customers who struggle to pay their bill over the next five years.
The capital markets day presentation will be available on the Severn Trent website (www.severntrent.com). The event will also be filmed and the recording made available on the website at a later date.
Severn Trent Plc will announce its Preliminary Results for the financial year ending 31 March 2015 on 22 May 2015.
1. 2012/13 prices
Enquiries:
Liv Garfield |
Severn Trent Plc |
0207 353 4200 (on the day) |
Chief Executive |
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02477 715000 |
Mike McKeon |
Severn Trent Plc |
0207 353 4200 (on the day) |
Finance Director |
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02477 715000 |
Rob Salmon |
Severn Trent Plc |
0207 353 4200 (on the day) |
Head of Communications |
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02477 715000 |
John Crosse |
Severn Trent Plc |
0207 353 4200 (on the day) |
Head of Investor Relations |
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02477 715000 |
Katharine Wynne / Martha Walsh |
Tulchan Communications |
0207 353 4200 |
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' or 'estimates' 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 (which have not been updated since); 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. Subject to compliance with applicable laws and regulations, Severn Trent does not intend to update these forward-looking statements and does not undertake any obligation to do so.
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).
