Fall in property development sales shaves half-year operating income at Severn Trent
A fall in property revenue at its Business Services was the chief contributor to a 4.3% fall in group reported interim profit before interest and tax (PBIT) at Severn Trent Water patient, Severn Trent, to £286.3 m with no significant underlying adjustments for the six months to 30 September 2019.
Group profit before tax was down £22.9m to £180.7m on revenue up £28.5m to £910m.
PBIT at Severn Trent Water was down 3.1% to £260.1m The Business Services segment reported PBIT down £7.4m at £29.9m was hit by a £6.2m dropping revenue from property sales to £12m. As well as property development the Business Services operation’s main businesses are operating contracts in the UK and Ireland, renewable generation and sludge treatment.
Revenue at the water and wastewater operation was up £12.5m to £807.5m. The company’s share of losses at it Water Plus joint venture with United Utilities was £9.3m up from £0.9m over the same period in the previous year.
Net finance costs at the group for the first half year were flat at £93.8m.