Severn Trent trading in line in first half

Water and wastewater company Severn Trent posted a trading update for the period from 1 April to 19 July on Wednesday, as it continued to focus on enhancing its customer service, operational and financial performance.

The FTSE 100 firm said it is making good progress with its plans to deliver “targeted efficiency savings” in the second year of the AMP6 regulatory period.

“Progress continues with the Water Plus joint venture with United Utilities,” Severn Trent’s board said in a statement.

“The deal completed on 1 June following Competition and Markets Authority approval on 3 May.”

For the full-year 2016/17, the board said its results will therefore include two months of discontinued operations for non-household retail operations, and ten months of the group's 50% share of the JV.

“Elsewhere for the group, there has been no material change to current year business performance or outlook since the full-year 2015/16 results on 24 May,” the board said.

“The board considers that the group will deliver trading performance consistent with its expectations and prior guidance.”

Severn Trent will announce its half-year 2016-17 results for the period ending 30 September on 24 November.