REG - Severn Trent PLC - Severn Trent Plc Trading Update

Severn TrentAnnouncement

08/02/2023 07:00

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RNS Number : 2275P  Severn Trent PLC  08 February 2023

 

8 February 2023

 

Severn Trent Plc Trading Update

Severn Trent Plc today announces 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 performance(1) and financial resilience(2).

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 ("EPA").
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 clearance(4).

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
(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
(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

 

Enquiries

 Investors & Analysts
 Rachel Martin               Severn Trent Plc        +44 (0) 7824 624011
 Head of Investor Relations

 Dominique Mowle             Severn Trent Plc        +44 (0) 7976 767079
 Investor Relations Manager

 Media
 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).

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