Severn Trent Plc (LON:SVT) has announced a trading update for the period to 8 February 2023.
Continuing to support customers and take care of the environment
For the second year running we are proud to have been recognised by Ofwat in its most recent assessment as the only Water and Sewerage Company in the leading category for both performance1 and financial resilience2.
We have continued to deliver a strong service for our customers despite the driest summer on record and a challenging winter. In addition, we are on track to financially support 315,000 of our most vulnerable customers by the end of the AMP.
Based on our initial view, we are confident we will achieve 4-star status in the Environment Agency’s 2022 Environmental Performance Assessment. This would be the fourth consecutive year we achieve the highest rating.
Robust financial performance and enhanced energy resilience
There have been no material changes to current year business performance or outlook since the interim results announcement on 22 November 2022 and our guidance for FY22/23 remains unchanged.
We self-generate the equivalent of over 50% of our energy consumption, resulting in a natural economic hedge which significantly reduces the impact of higher power prices on our shareholder returns. Over the last six months we have locked in prices for our remaining exposure for FY23/24.
Further enhancing our energy generation capacity and resilience, today we are pleased to announce Severn Trent Green Power’s acquisition of Andigestion Ltd, which operates two food waste anaerobic digestion plants in Devon and Gloucestershire. This will bring an additional 45 GWh per annum of energy generation, increasing Green Power’s output by 16%3. The acquisition is subject to regulatory clearance4.
Financial calendar
Full-year results – Severn Trent’s annual results presentation will be on 24 May 2023.
Following the submission of our PR24 Business Plan, we will host a Capital Markets Day to bring our AMP8 plans to life on 12 October 2023.
Footnotes
1 Water company performance report 2021-22 https://www.ofwat.gov.uk/wp-content/uploads/2022/12/WCPR_2021-22.pdf
2 Monitoring financial resilience report 2021-22 https://www.ofwat.gov.uk/wp-content/uploads/2022/12/MFR_2021-22.pdf
3 Based on FY22 actual generation of 274 GWh
4 The intended acquisition is subject to clearance by the Competition and Markets Authority
