Severn Trent reports 17% jump in first-half profits

20th Nov 2024 07:31

(Sharecast News) - Severn Trent has reported a double-digit increase in first-half profits and said it expects capital investment to hit the top end of guidance this year, putting it in a strong position for the next five-year regulatory cycle, AMP8.

The Coventry-based group, which supplies 4.6m households and business across the Midlands and Wales, said profit before interest and tax totalled £297.8m in the six months to 30 September, up 16.7% from £255.1m the year before.

Results were helped by higher tariffs, while higher operating costs were partly offset by lower energy prices and reductions in infrastructure renewals.

Group turnover was £1.22bn, up 4.5% on £1.17bn in the first half of last year.

Capital investment during the period totalled £665.9m, up from £476.9m previously, as the company delivers its AMP7 commitments, the Green Recovery programme and accelerated investment to prepare for AMP8.

This year marks Severn Trent's largest year of investment with total capital expenditure forecasted in the upper end of the £1.3bn-£1.5bn guidance range, with accelerated spend for AMP8 which begins on 1 April 2025. The total capital investment in AMP7 is now more than £4bn.

"We are implementing the sector's most ambitious storm overflow improvement plan at pace, while also creating 7,000 jobs across our region, including a new 440-strong team of experts dedicated to our water pipe replacement programme," said chief executive Liv Garfield.

"We are going further and faster than ever before and have a great platform to deliver huge benefits for our region in the years ahead."