Severn Trent grows annual profits, lifts dividend

22nd May 2024 07:35

(Sharecast News) - Water group Severn Trent said it delivered an "industry-leading performance" with strong profit and revenue growth in the year where it invested more than ever before, helping the company to lift its final dividend by 9%.

Group turnover totalled £2.34bn, up from £2.17bn the year before, driven mainly by higher revenues in the Regulated Water and Wastewater business.

Profit before interest and tax inched higher to £512m from £509m. Adjusted earnings per share however surged by 36% to 79.4p after accounting for the additional 46.5m shares issued in October 2023.

The company invested £1.20bn during the year, up 63% on the £0.74bn invested the previous year, bringing the total invested in Asset Management Plan 7 to more than £3bn.

In line with its dividend policy, the company proposed a final dividend of 70.1p per share, up from 64.09p the previous year, giving a full-year payout of 116.84p, up from 106.82p previously.

"The extra £1bn we raised from our investors will help us continue to transform the network, reducing spills, improving river health and providing our customers with the best and most reliable service," said chief executive Liv Garfield.

"Following extensive work to test and trial solutions, just last week we unveiled plans to deliver storm overflow solutions across 900 locations in the Midlands this year, and a dedicated 300-strong team are now installing c. 1,000 capital schemes which, once finished, will see a reduction of 20% of spills per year."