Severn Trent Group interim profit before tax down 29%

Severn Trent Group has reported a 29% slide, year-on-year in its profit before tax at £105m for the six months to 30 September 2022. Finance costs for the period rose 55% to £190m and operating costs were up 13.5% to £801m due largely to a 75% surge in energy prices. Turnover for the half-year was up 11% to £1062m.

The increase in finance costs were offset by a doubling in the net gain on financial instruments to £30m. The group’s share of profit from its water retail joint venture with United Utilities, Water Plus, was £200,000 – up from a £1.8m loss at the 2021-22 half-year stage.

Group profit before interest and tax (PBIT) was up 2.4% on the previous period at £262m. PBIT for Severn Trent Water was flat at £243m on sales up 10% at £985. The group’s Business Services operation reported PBIT growth over the reporting period at 38% to £23m on a turnover of £81m – up 23%. This was fuelled by increased energy prices for its power generation business.

The group reported its outcome delivery incentive payments as “on course” to total “at least £50m” at the end of the current AMP.