Sale of Land in Nottingham

1 May 2018

 

                     

 

 

Severn Trent Plc - Sale of Land in Nottingham

 

Severn Trent is pleased to announce the sale of land through its property subsidiary, Midlands Land Portfolio Limited to Persimmon Homes Limited.

 

The site is located approximately five miles east of Nottingham, between Netherfield and Stoke Bardolph. In conjunction with land purchased by Persimmon from Gedling Borough Council this development will create 830 new homes as well as new leisure areas including play pitches with changing facilities, allotments, children's play areas, an ecology park for the community to use and a new primary school, all bringing people and jobs into the area.

 

Andy Smith, Managing Director of Severn Trent Business Services, said:

 

 "This is an excellent example of innovation with public and private sectors working together for the communities they serve and building new homes which are desperately needed in this area. In line with the strategy we have previously announced, we are very pleased that by making our business more efficient, we have been able to free up land to help create this development. It is also great news for Severn Trent customers because a portion of the proceeds we receive will be shared with customers in the form of lower bills in the future."

 

The sale values the land at £21.8 million, realising a group profit of £18.2 million¹ in the year ended 31^st March 2019. Payments will be made in cash and phased over the life of the project with £2.3 million payable now and the remainder phased evenly over 5 further yearly payments of £3.9 million each ending on 30th April 2023.

 

 

1.     Group Profit is defined as Profit Before Tax inclusive of planning and development costs and carrying value of the land.

 

 

Enquiries
Investors & Analysts
Richard Eadie	Severn Trent Plc	+44 (0) 7889 806578
Head of Investor Relations
Richard Tunnicliffe	Severn Trent Plc	+44 (0) 7834 419722
Investor Relations Manager
Media
Severn Trent Press Office	Severn Trent Plc	+44 (0) 2477 715640
Jonathan Sibun	Tulchan	+44 (0) 207 353 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', '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 profit 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).