Severn Trent half-year results in line with company expectations
Severn Trent Group has reported half year financial results to 30 September 2020 as in line with its expectations with profit before interest and tax (PBIT) for the group down 21% year-on-year to £225.6m and pre tax profit down 30% to £127.5m.
Contributing factors to the fall in PBIT included lower revenue – down 2.5% to £887.6m – and anticipated pandemic-related bad debt. Turnover was hit by lower business consumption following the introduction of Covid restrictions, offset in part by higher domestic consumption under lockdown.
The company reported PBIT for its regulated water arm, Severn Trent Water, down 19% to £219.6m for the report period with turnover down £20m to £829.9m. Its non-household supply operation Severn Trent Business Services showed a 53% fall in PBIT to £8.2m on sales off £2.5m at £59.1m.
Severn Trent wrote down its investment in its joint venture with Untied Utilities, Water Plus, to nil. So there is no loss to record in the current period.
Interim dividend was increased 1.5% to 40.63p a share.
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