Severn Trent Water PLC (SVT)

[idpickering]

Severn Trent Plc Trading Update.

Strong operational and environmental performance

We are pleased to have been awarded the highest possible 4-star Environmental Performance Assessment ('EPA')1 status by the Environment Agency for 2022, becoming the first company to maintain this position for four consecutive years.

We remain on track with 100% of our environmental performance commitments for this year and are making good progress with our Get River Positive pledges and our programme to deliver the world's first carbon-neutral waste water treatment works in 2024.

We have made a strong start to the year operationally and, with reservoir levels at 77%, more than 10% higher than at this point last year, are well-positioned for the summer months.

Financial performance in line with expectations

Financial performance remains on track and we expect to deliver in line with expectations, including a net reward of at least £50 million in customer ODIs2, reflecting our sector-leading performance for customers.

Across the Group, our natural economic energy hedge provides protection against energy price volatility and we now have 45% of our net energy exposure for 2024/25 locked in at significantly lower rates than those for 2023/24.

We continue to manage our totex programme efficiently, benefitting from our in-house engineering capabilities, advance procurement strategy and direct relationships with a broad supply chain. Our investment programme is moving at pace, with capital expenditure expected to be between £850 million and £1 billion this year, as we step up our delivery capacity ahead of AMP8, which is expected to be one of the most significant investment periods in the sector's history.

We remain well-positioned for this step up in investment with regulatory gearing3 of 60% at the most recent financial year end. We are consistently named in the top category of financial resilience by our economic regulator, Ofwat.

https://www.investegate.co.uk/announcem ... te/7640804

Ian (No holding).

[idpickering]

Severn Trent PR24 Business Plan Summary.

Severn Trent proposes record levels of investment with transformational Business Plan.

· Severn Trent plans £12.9 billion total expenditure across the next five-year regulatory period, driving 31% real RCV growth; record investment programme expected to create 7,000 jobs across the Midlands

· Sustainability-led plan includes significant progress on customer priorities, including 30% reduction in storm overflow spills, 30% reduction in pollutions and 16% reduction in leakage

· Affordability a key focus, with £550 million package to support 693,000 customers who might otherwise struggle to pay their bill

· Severn Trent today launches non-pre-emptive equity placing to raise £1 billion, supporting this investment, while maintaining strong financial resilience

Severn Trent Plc has today published a summary of the Business Plan for Severn Trent Water for the regulatory period beginning 1 April 2025 and ending 31 March 2030 ("AMP8"). The full Business Plan will be submitted to Ofwat on 2 October 2023 but a summary is published today alongside the announcement of a non-pre-emptive equity placing to raise approximately £1 billion.

The plan builds on Severn Trent's strong delivery track record and proposes the largest investment programme in the Company's history. It has been developed to deliver for customers, the environment, the region and shareholders and has been judged as acceptable by 76% of customers surveyed.

https://www.investegate.co.uk/announcem ... ry/7785541

Ian.

[Dod101]

Severn Trent PR24 Business Plan Summary.

Severn Trent proposes record levels of investment with transformational Business Plan.

· Severn Trent plans £12.9 billion total expenditure across the next five-year regulatory period, driving 31% real RCV growth; record investment programme expected to create 7,000 jobs across the Midlands

· Sustainability-led plan includes significant progress on customer priorities, including 30% reduction in storm overflow spills, 30% reduction in pollutions and 16% reduction in leakage

· Affordability a key focus, with £550 million package to support 693,000 customers who might otherwise struggle to pay their bill

· Severn Trent today launches non-pre-emptive equity placing to raise £1 billion, supporting this investment, while maintaining strong financial resilience

Severn Trent Plc has today published a summary of the Business Plan for Severn Trent Water for the regulatory period beginning 1 April 2025 and ending 31 March 2030 ("AMP8"). The full Business Plan will be submitted to Ofwat on 2 October 2023 but a summary is published today alongside the announcement of a non-pre-emptive equity placing to raise approximately £1 billion.

The plan builds on Severn Trent's strong delivery track record and proposes the largest investment programme in the Company's history. It has been developed to deliver for customers, the environment, the region and shareholders and has been judged as acceptable by 76% of customers surveyed.

https://www.investegate.co.uk/announcem ... ry/7785541

Ian.

So sounds as if shareholders are going to be diluted as seems to be the case for most fund raisings these days. Shareholders ought to revolt at this but I guess most do not care. I suppose many/most water companies will be announcing fund raisings next week when they submit their five year plans.

Dod

[Dod101]

And just out of interest, it seems that the chief executive of Severn Trent was able to subscribe for £100,000 of new shares, unlike most of her longstanding shareholders, and made a paper profit of £9,000 on the day.

There is no doubt that for the company a share placing like this is much quicker and much cheaper than the traditional rights issue but, notwithstanding Primary Bid being involved, it is quite unfair on existing shareholders, although they passed a resolution to allow this at the
AGM.

Dod

[idpickering]

Severn Trent submits PR24 Business Plan.

Severn Trent Plc announces that the Business Plan for Severn Trent Water for the regulatory period beginning 1 April 2025 and ending 31 March 2030 ("AMP8") has now been submitted to Ofwat.

We're pleased to be able to submit this ambitious plan that will invest £12.9 billion to deliver benefits for our customers, the environment, the region and shareholders, underpinned by a £550 million affordability package and strong shareholder support following a successful £1 billion equity raise.

https://www.investegate.co.uk/announcem ... an/7789322

Ian (No holding).

[idpickering]

Severn Trent Plc PR24 Capital Markets Day.

Today Severn Trent Plc is hosting a Capital Markets Event to bring to life its PR24 Business Plan for the regulatory period 1 April 2025 to 31 March 2030 ("AMP8").

Our plan includes £12.9 billion of investment which will deliver benefits for our customers, the environment, the region and our shareholders, underpinned by a £550 million affordability package and strong shareholder support following a successful £1 billion equity raise.

Throughout the day we will share details of our largest ever investment programme, why we have confidence in our ability to deliver it, and the work we're doing to consolidate our position as the sector leader. This includes:

https://www.investegate.co.uk/announcem ... ay/7811454

Ian (No holding).

[idpickering]

Interim results for the six months to 30 Sept 2023.

Dividends

The Board has declared an interim ordinary dividend of 46.74 pence per share (2022/23: 42.73 pence per share), which will be paid on 10 January 2024 to shareholders on the register at 1 December 2023.

https://www.investegate.co.uk/announcem ... 23/7895746

Ian.

[idpickering]

Severn Trent Plc today announces the following trading update for the period to 13 February 2024.

We are confident we will retain four star status in the Environment Agency's annual Environmental Performance Assessment1 for a sector-leading fifth consecutive year. Four star status is the highest rating achievable, and includes zero serious pollution incidents in the year.

We continue to guide to at least £50 million in ODI2 rewards this year, despite having experienced ten named storms since September3, contributing to the last six months of 2023 being the third wettest for England on record4. This would take our total cumulative rewards across the first four years of AMP75 to over £250 million, and reflects the c. £3 billion of capital investment we have made during that period to improve service for our customers and add further resilience to our network.

https://www.investegate.co.uk/announcem ... te/8036610

Ian.