Severn Trent content as business flows in
WATER utility Severn Trent has seen an increase in both turnover and profit over the last 12 months.
The Coventry firm, which supplies water to more than four million households, saw turnover increase by 3.4% to £1.83bn in the 12 months to March 31 (2012: £1.77bn). Profit before tax was up by 37.3% at £215.2m (2012: £156.7m).
Chief executive Tony Wray said: “Our focus on continuous improvement has once again delivered a good financial and operational performance.
“Severn Trent Water invested £555m during the year, supporting growth of our RCV by 3.9% to £7,364m and delivering operational improvements in the areas we targeted, with leakage at a 20 year low and 13 out of the 14 Ofwat key performance indicators (KPIs) showing an improved or stable performance year on year.
“We expect to invest around £600mto £620m this year to further improve our operational performance and service levels.
“From a financial perspective, Severn Trent Water delivered further efficiency gains, with PBIT stable year on year, despite incurring additional infrastructure investment costs and costs related to the adoption of private drains and sewers (PDaS), which together totalled £25m.
“In our non-regulated business we delivered like for like revenue growth of 5% as expected, and we continued to invest in growth areas of the business.”
Earlier this month Severn Trent has rejected initial takeover approaches from an international consortium of investors claiming the bid fails to place sufficient value on the business.
The consortium compriswa Canada’s Borealis Infrastructure Management Inc, the Kuwait Investment Office and Universities Superannuation Scheme Ltd.
