REG - Severn Trent PLC - Severn Trent Plc Trading Update

Severn TrentAnnouncement

14/02/2024 07:00

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RNS Number : 0341D  Severn Trent PLC  14 February 2024

Severn Trent Plc Trading Update

 

Severn Trent Plc today announces the following trading update for the period
to 13 February 2024.

 

Continuing to deliver industry-leading operational and environmental
performance

We are confident we will retain four star status in the Environment Agency's
annual Environmental Performance Assessment(1) for a sector-leading fifth
consecutive year. Four star status is the highest rating achievable, and
includes zero serious pollution incidents in the year.

We continue to guide to at least £50 million in ODI(2) rewards this year,
despite having experienced ten named storms since September(3), contributing
to the last six months of 2023 being the third wettest for England on
record(4). This would take our total cumulative rewards across the first four
years of AMP7(5) to over £250 million, and reflects the c. £3 billion of
capital investment we have made during that period to improve service for our
customers and add further resilience to our network.

 

Our focus remains on both enhancing our service for customers and also
providing support for those who are struggling to pay. To that end, we are now
supporting around 250,000 of our most vulnerable customers through a range of
measures, including bill reductions. We remain on track to support 315,000 by
the end of the AMP in 2025, and are planning to double the number of customers
we offer financial support to in AMP8.

 

Robust financial performance in line with expectations

 

There have been no material changes to the current year business performance
or outlook since the interim results announcement on 22 November 2023.

 

Reporting and investor timetable

 

Stakeholders can find a range of materials relating to our operations and
future plans on our website (www.severntrent.com (http://www.severntrent.com)
), including:

 

·    PR24 Business Plan

·    EU Taxonomy Disclosure

·    Capital Markets Day 2023

We welcome stakeholder feedback on our reporting.

Full-year results - Severn Trent's annual results presentation will be on 22
May 2024.

AGM - Severn Trent's Annual General Meeting will be on 11 July 2024.

 

 

Footnotes

1.     Environmental Performance Assessment (EPA)

This is the industry standard measure of the environmental performance of
water and sewerage companies (WaSCs), and four star represents the highest
rating achievable. It uses measurable environmental indicators to provide a
meaningful comparison of performance across the nine WaSCs in England. The
2022 assessment can be found at the following link:
https://www.gov.uk/government/publications/water-and-sewerage-companies-in-england-environmental-performance-report-2022
(https://www.gov.uk/government/publications/water-and-sewerage-companies-in-england-environmental-performance-report-2022)
.

2.     Outcome Delivery Incentives (ODIs)

A framework made up of outcomes, measures, targets and incentives which
provides companies with rewards for achieving stretching performance targets
and compensates customers if performance is below performance targets. Outcome
Delivery Incentives are quoted pre-tax in 2017/18 prices. We assume a 25% rate
of corporation tax to be in place when ODIs are taken into revenue.

3.     Met Office UK Storm Centre

The named storms list runs from September to August every year. The Met Office
keep track of all the named storms on their website, which can be found at the
following link: UK Storm Centre - Met Office
(https://www.metoffice.gov.uk/weather/warnings-and-advice/uk-storm-centre/index)

 

4.     Environment Agency monthly water situation report

Monthly water situation reports published by the Environment Agency. The
latest report for December 2023 can be found at the following link: Water
situation report England December 2023 (publishing.service.gov.uk)
(https://assets.publishing.service.gov.uk/media/659ecedfe8f5ec000d1f8b4e/Water_situation_report_for_England_December_2023.pdf)

 

5.     Asset Management Plan (AMP)

The regulatory cycle is broken up into five year periods known as AMP (Asset
Management Plan) periods. The current period is known as AMP7 (2020-2025), and
AMP8 refers to the next period of 1 April 2025 to 31 March 2030. The PR24
business plan can be found at the following link: Our plans 2025 - 2030 |
About Us | Severn Trent Water (stwater.co.uk)
(https://www.stwater.co.uk/about-us/our-plans-2025-2030/)

 

Enquiries


 Investors & Analysts
 Rachel Martin               Severn Trent Plc  +44 (0) 782 462 4011
 Head of Investor Relations

 Andy Farrell                Severn Trent Plc  +44 (0) 798 939 0825
 Investor Relations Manager

 Media
 Jonathan Sibun              Teneo             +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. The final PR24 Business Plan
is subject to approval by Ofwat and there can be no assurance that the PR24
Business Plan will be approved, in whole or in part, and, as a result, 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.

 

Certain information contained herein is based on management estimates and
Severn Trent's own internal research. Management estimates have been made in
good faith and represent the current beliefs of applicable members of Severn
Trent's management. While those management members believe that such estimates
and research are reasonable and reliable, they, and their underlying
methodology and assumptions, have not been verified by any independent source
for accuracy or completeness and are subject to change without notice, and, by
their nature, estimates may not be correct or complete. Accordingly, no
representation or warranty (express or implied) is given to any recipient of
this document that such estimates are correct or complete.

 

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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