Severn Trent Plc
Trading Update for the period 1 October 2018 to 6 February 2019
Severn Trent Plc, a leading UK water and wastewater company, today announces a trading update for the period to 6 February 2019.
A fast-track company
Following Ofwat's announcement last week, we are delighted Severn Trent has been selected as one of only three fast-track companies for our PR19 plan. The plan was praised for its approach to customer engagement, affordability, cost efficiency and innovation. We welcome the clarity this early assessment provides to help us plan for a fast start in April 2020.
Strong UKCSI customer performance
We are pleased that the most recent UKCSI1 survey acknowledges Severn Trent's continued strong performance in the eyes of our customers, placing us in the top quartile of our sector as we prepare for new customer experience measures in AMP7.
Forecast in-line with expectations
There have been no material changes to current year business performance or outlook since the HY18/19 results presentation on 22 November 2018. The Board continues to expect that the Group will deliver full-year trading performance in-line with its expectations and prior guidance.
In December, we welcomed Ofwat's decision to increase the cap on waste water customer ODIs from 2% to 2.6% of RoRE, from 1 January 2019. This continues to align performance incentives to the things our customers care most about. As previously stated, these prospective changes will provide the opportunity to receive further outperformance payments in FY2019/20 for some of our longer-term waste water customer ODIs that would have been limited by the previous cap. Our guidance of a net neutral position for FY2018/19 remains unchanged.
Our capital programme is progressing well and we are on track to deliver our biggest capital spend in a decade. Our re-investment programme from part of the £870m Totex efficiencies we have delivered in AMP6 is continuing at pace, putting us in a strong position for AMP7.
PR19 Webcast
We will be hosting a webcast at 14.00 today, 6 February 2019 to discuss the details of Ofwat's announcement in more detail. You can also access our investor summary of the key facts here.
Annual Results
Severn Trent's annual results announcement and presentation originally scheduled for 22 May 2019 will now take place a day earlier on 21 May 2019.
1UK Customer Service Index rankings released January 2019
Enquiries: |
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Investors & Analysts |
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Rich Eadie |
Severn Trent Plc |
+44 (0) 7889 806578 |
Head of Investor Relations |
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Rachel Martin |
Severn Trent Plc |
+44 (0) 7824 624011 |
Investor Relations Manager |
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Media |
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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).
