Severn Trent PLC (LON:SVT) said it remains on track to hit full-year targets, a day ahead of an expected update from the water industry regulator.
Overall, the FTSE 100 water and waste group said it had made a “good start” to its financial year, which began on 1 April, with no material change to the business performance or outlook for the current year since results were announced on 21 May.
Directors continue to expect to deliver a full-year trading performance in line with prior guidance.
On Thursday 18 July, regulator Ofwat is expected to publish an update on the 2019 price review and a draft determination for several water companies, including Severn Trent’s Welsh business Hafren Dyfrdwy.
After the first three and a half months of the financial year, Severn Trent said it was on track to deliver “at least £25mln” of outperformance payments from customer outcome delivery incentives for the full year.
Shares in the company, which hit an 18-month high above 2,150p earlier this month, fell almost 3% in early trading on Wednesday to 1,921p but were back up to almost 2,000p by late morning.