Severn Trent lifts business services division guidance

FTSE 100 water company Severn Trent lifted its guidance for its business services division on Wednesday following the sale of its North American business.

In a trading update for the period from 1 April to 19 July, Severn said it now expects growth in both revenue and profit before interest and tax on a like-for-like basis.

Other than that, the company said there has been no material change to the current year's business performance or outlook since the full-year results in May and it continues to anticipate a full-year trading performance in-line with its expectations and prior guidance.

Severn said that following the successful acquisition of Dee Valley in February 2017, integration of the business is progressing well. In addition, the company is encouraged by the ongoing progress of it Water Plus joint venture.

"It has strongly positioned itself in the new market, including winning a number of large multi-site customers such as Kwik-Fit and David Lloyd Leisure," it said.