Low revenue growth on the cards at Severn Trent

COVENTRY-based utility Severn Trent is predicting it will deliver low single digit revenue growth this year.

In an interim management statement covering the period April 1 to July 17, Severn Trent said trading across the group has been in line with its expectations.

It said operating expenditure continues to be in line with the board’s expectations for the year and are expected to rise year on year, due to the impact of inflation, a full year of operating private drains and sewer assets, and increases in quasi taxes, offset by efficiency improvements.

“Expectations for net capital expenditure remain in the range £570m to £590m, including an estimated £15m related to private drains and sewers. The level of net infrastructure renewals expenditure included in this range is anticipated to be £140m to £150m,” it said.

“For the full year, Severn Trent Services is expected to deliver low single digit revenue growth.”

At the end of June, Severn Trent announced it had entered into a joint venture with Costain Group to provide complete business water and wastewater management services to high volume commercial and industrial water users in the UK.