Severn Trent on track to grow annual profits despite weaker first half

The group said it still expects to grow adjusted earnings per share in the 12 months to 31 March 2024 from the prior year's 58.2p.

Profits before interest and tax will be marginally lower on last year's £508.8m due to the expected impact of higher energy and chemical prices, which were weighted to the second half in the previous year.

In the first half ended 30 September, group turnover was up 9.7% at £1.17bn mainly due to increases in pricing.

Profits before interest and tax fell 2.5% to £255m due to higher costs and greater levels of investment impacting infrastructure renewals expenditure and depreciation.

The company invested £477m in its network during the first six months of the year, up 77% on last year, and remains on track to spend £1bn for he full year – representing its largest ever year of capital investment.

The company raised its interim dividend to 46.74p per share, up from 42.73p at the half-year stage last year.

"We're delivering for customers today, and also preparing for the future," said chief executive Liv Garfield.

"We have set out plans to invest £12.9bn from 2025, the equivalent of £2,400 per household. These plans will bring huge benefits to nature including healthier rivers, 7,000 jobs to our region through new roles, insourcing and in the supply chain, as well as a financial support package to help around one in six families navigate cost-of-living pressures. We're hugely excited about the economic, environmental and societal benefits this will bring to the Midlands for decades to come."