Covid and PR19 stem revenues at Severn Trent

The combined impact on revenues of Covid and allowances under PR19 Severn Trent Group were chief contributors to a 17% year-on-year fall in group profit before interest and tax to £472.8m for the year to 31 March 2021.

The group reported a £14m decrease in revenue to £1.694 bn with sales at Severn Trent Water down £96m to £452.1m. Revenue at the Business Services arm for the period was down £10.2m to £25.8m.Group costs were up 9% to £726m. Household cash collection for the group improved 5.2% compared to last year helping to pull bad debts down by £2m to £40.5m.

The difficult year shared by the entire industry was boosted at Severn Trent by its receipt of £565m in new investment under Ofwat’s Green Recovery programme.

A £33m year-on-year decrease to £13.8m in the company’s equity-based share of losses at its water retail joint venture with United Utilities, Water Plus, along with an £11m fall in net losses on financial derivatives to £6.2m stemmed the fall in group profits before tax to 14% at £267.2m. Water Plus reported a £150m slump in revenues for the year as Covid pared back commercial water use.