Severn Trent lifts guidance substantially

Water and wastewater company Severn Trent released a trading update for the three months to 31 December on Tuesday, saying that after a “strong operational performance” in the third quarter, it now expected net customer outcome delivery incentive rewards for the full-year 2016-17 to be ahead of previous guidance of £15m.

The FTSE 100 firm did caution that there remained two “unpredictable” winter months ahead, though it did anticipate at least meeting or exceeding the level achieved last year, which was £23.2m.

It added that there had been no material change to other technical guidance for the full year, and the board confirmed that it was continuing to perform in line with expectations.

“We are pleased with our third-quarter performance which is testament to the hard work and dedication of our colleagues,” said chief executive Liv Garfield.

“While there remains much to do, we are making progress towards our goals of providing an outstanding customer experience, best-value service, and environmental leadership.”

Garfield said Severn Trent remained committed to delivering its £670m totex efficiency target in the current regulatory period, and achieving the lowest possible cost of finance for the business.

“We will provide a further update on progress towards these goals at our full-year results.”

Severn Trent said it will announce its full year 2016-17 results for the year to 31 March on 23 May.