Severn Trent restates previous results following business retail joint venture

Severn Trent has issued a restatement of its prior-year results following its reclassification of the non-household retail activities as discontinued operations and its formation of the Water Plus joint venture with United Utilities, which completed on 1 June 2016.

As a consequence of the reclassification and JV formation, the results for the group for the full financial year to 31 March 2017will include two months of discontinued operations for non-household retail operations, and ten months of the Group's 50% share of the JV.

Severnt Trent said there was no material change to the group’s current year business performance or outlook since the full-year 2015/16 results. It said the restatement of 2015/16 half-year and full-year results was “to assist investors and analysts in their financial modelling of the group, in advance of the half-year 2016/17 results, scheduled for 24 November 2016.

Restatement summary

  • For the year to 31 March 2016, group turnover from continuing operations is down by £33.2m – the sales of the Severn Trent Water non-household retail business and of the company’s out-of-area retail business mainly in Scotland (£397.9m), less the sales from Severn Trent’s wholesale business to its non-household retail business (£364.7m). Group PBITE from continuing operations is restated by £19.4m.

  • Business Services turnover from continuing operations is reduced by £397.9 million to £276.7m and profit before interest, tax and exceptional items (PBITE) from continuing operations is restated down by £9.8m at £28.4m.

  • Regulated Water and Waste Water turnover is unaffected, but PBITE is down by £9.6m. This reflected the share of costs that were previously with non-household retail operations which were not transferred to the JV.

  • Discontinued operations turnover is up by £397.9m to £427.6m and PBITE is increased by £19.4 million to £21.5m.

  • Group turnover from continuing operations for the six months to 30 September 2015 is reduced by £17.5m. This was attributed to the sales of the Severn Trent Water non-household retail business and of out of area retail business mainly in Scotland (£203.2m), less the sales from internal sales from wholesale to non-household retail (£185.7m). Group PBITE from continuing operations is restated up by £10.9 million to £270.1m.

  • Business Services turnover from continuing operations reduced by £203.2 million to £134.1m and PBITE from continuing operations is restated down by £6.1 million to £11.2m.

  • Regulated Water and Waste Water turnover is unaffected but PBITE reduced by £4.8 million to £265.4m again reflecting the share of costs incurred in Regulated Water and Waste Water that were previously reallocated to non-household retail operations.

  • Discontinued operations turnover increased by £203.2m to £232.9m and PBITE increased by £10.9 million to £13m.