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Severn Trent expects to deliver a full-year trading performance in-line with previous guidance

Published: 19:10 06 Feb 2019 AEDT

Water
Severn Trent said its capital programme is progressing well and it is on track to deliver its biggest capital spend in a decade

Severn Trent PLC (LON:SVT) continues to expect that it will deliver a full-year trading performance in-line with its expectations and prior guidance.

In a trading update for the period from 1 October 2019 to 6 February 2019, the FTSE 100-listed water and wastewater company said there have been no material changes to current year business performance or outlook since it reported its interim results on 22 November 2018.

READ: Severn Trent delivers strong first half, sees biggest capital spend for a decade

The firm said its capital programme is progressing well and it is on track to deliver its biggest capital spending in a decade, while its re-investment programme from part of the £870m Totex efficiencies is continuing at pace.

Severn Trent added that its guidance of a net neutral position for full-year 2018/19 from regulator Ofwat's decision to increase the cap on wastewater customer ODIs (outcome delivery incentives) from 2% to 2.6% of RoRE (return on regulatory equity), from 1 January 2019. remains unchanged.

The group also said that, following Ofwat's announcement last week, it is delighted to have been selected as one of only three fast-track companies for its 2019 price review plan.

It added: “We welcome the clarity this early assessment provides to help us plan for a fast start in April 2020.”   

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