https://www.investegate.co.uk/severn-tr ... LC%20Alert
Continued momentum and fast-track status building a strong platform for AMP7
Continuing our leading AMP6 performance:
− Maintaining the lowest bills in England for ten years1, set to continue to at least 2025
− Excellent progress on our capital programme with the largest year of capital spend in a decade of £769 million, supporting our commitment to invest £1,300 for every household we serve over AMP6
− Cumulative AMP6 ODI2 outperformance of £138 million, including net £4.5 million penalty for FY18/19. Without the ODI cap, this would have been our best year to date, with ODI outperformance equivalent to £91 million
− Strong second half of operational improvements in Water gives confidence in FY19/20 and beyond
− On track to exceed 50% renewable energy self-generation target in FY19/20, boosted by acquisition of Agrivert UK renewables business, contributing to Group net carbon emissions reduction of 41% since the beginning of AMP6
Setting ourselves up for the future:
− Received Draft Determination for Severn Trent Water, confirming fast-track status for AMP7
− One of the first companies in the UK to make the triple pledge to achieve net zero carbon, 100% electric fleet3 and 100% of energy from renewable sources by 2030
− Expect to earn at least £25 million in customer ODIs in FY2019/202, increasing the amount of outperformance payments rolled into AMP7 to at least £177 million4
− Partners appointed for around £1.5 billion of our £2 billion AMP7 capital programme. New capital delivery model, with a broader supply chain and in-house design team, progressing well
Delivering strong and resilient financial results:
− Group turnover of £1,767 million, up £71 million (4.2%)
− Group underlying PBIT5 of £574 million, up £34 million (6.3%) having absorbed all hot weather costs
− Group reported PBIT of £563 million6, up £36 million (6.8%)
− Cumulative RoRE of 9.1%7 despite hitting the Waste customer ODI cap
− Reduction in effective interest rate by 60 basis points to 3.9%, driving underlying basic EPS8 of 145.8 pence (up 21.0%), reported basic EPS from continuing operations 133.4 pence (up 31.0%)
− Proposed final dividend of 56.02 pence, in line with policy
Dividends
In line with our policy for the remainder of AMP6 to increase the dividend by at least RPI+4% each year, the Board has proposed a final ordinary dividend of 56.02 pence per share for 2018/19 (2017/18: 51.92 pence per share). This gives a total ordinary dividend for the year of 93.37 pence (2017/18: 86.55 pence). The final ordinary dividend is payable on 19 July 2019 to shareholders on the register at 14 June 2019.
Flowing along quite nicely ….
Ian