Severn Trent Share Discussion Threads

[pillion] 22/7/2010 09:40

Bearish comment

[ashtongray] 21/5/2010 20:50

Yes, just bought back in afer recent price weakness, I guess the general malaise has affected these also even tho an index linked utility "ought" to be a safe haven. Results next week so we will see...

[tday] 21/5/2010 20:01

Is there anybody still in SVT?

[miata] 26/2/2010 16:50

Now that the haggling with the regulator over price controls is out of the way Royal Bank of Scotland has been poring over the numbers for the water sector and concludes that there is value to be had.

RBS analyst Ian Turner said in a note initiating RBS's coverage of the water sector that price control by water regulator Ofwat was 'tougher than was hoped for' but 'efficiency targets have been relaxed between draft and final proposals and investment over the next five years will be £22bn for the whole industry, about 7% higher than the spend in 2005-10.'

Predatory activity is not unknown in the sector and with most players trading below or marginally above their regulatory asset base valuations, by RBS's calculations, there is scope for more consolidation. RBS doubts, however, that take-out prices will be at a 30% premium to RAB that have been seen in the past.

'We are initiating coverage of the UK water sector with a Hold rating on Pennon (price target 570p) which trades at small premium to its RAB, on our estimates. We have Buy ratings on Northumbrian (price target 310p), Severn Trent (price target 1,500p) and United Utilities (price target 680p). We estimate that the latter two trade at small discounts to their RABs,' Turner concludes.

[investinggarden] 24/2/2010 11:34

Severn and Scottish lead utilities

[miata] 01/2/2010 08:03

Up on the possibility of an Ontario bid for Northumberland.

It is thought the Ontario Teachers' Pension Plan would have to offer at least 25% above Northumberland's closing price on Friday in order to win shareholder backing for the deal.
But the fund is unlikely to offer a larger premium on the company's current value, as its existing stake in the group is likely to deter counter bids from other groups.

[miata] 26/1/2010 21:28

The share price did little after the company's trading statement this morning.

The water company said the decline in consumption by non-residential customers tailed off in the fourth quarter and now estimates that the cutback in consumption will now result in a year on year fall in revenue of around £5m to £10m in the current financial year, compared to its previous estimate of a £15m to £20m fall.

[scotty1973] 21/1/2010 10:53

have these guys massively conned the regulator or are they taking on more debts to pay the dividends?

[miata] 21/1/2010 09:15

HSBC Neutral, but but target up to £11.30 from £10.80.

Nomura buy for yield.

Strong Buy 5
Buy 0
Neutral 3
Sell 0
Strong Sell 3
Total 11

[beardmore] 19/1/2010 10:02

Sensible, acceptable and such a display of responsibility will do the share price good.

[miata] 19/1/2010 09:51

Severn Trent has announced a 'one-off' cut in the dividend to help it meet the output and operating efficiency demands of the industry regulator.

Its first year dividend for start of the AMP5 period will be rebased to 10% below the full year 2009/10 dividend, given the price reductions contained in Ofwat's final set of proposals for 2010-2015.

-Given reduction in Ofwat's allowed weighted average cost of capital to 4.5% real, opening adjustment to level of dividend payment for 2010-2015 will be necessary to maintain sustainable level of shareholder return.

-Policy for subsequent years is for growth in dividend from new base to deliver both progressive and sustainable returns to shareholders.

-This does not affect current Severn Trent dividend policy, which runs until end of AMP4.

[beardmore] 03/1/2010 12:27

Yes, I'm sticking with it.

[5dally] 03/1/2010 10:49

long term another good bell weather stock to hold, all IMO and DYOR

[beardmore] 23/12/2009 10:28

Good for 1150 now.

[nspal] 15/12/2009 17:30

The movement now appears to be in a positive direction after some shaky times prior to the regulator's decision.

This announcement may put a smile on the face of revoc2



Severn Trent Water named 2009 Utility Company of the Year

15 December 2009
Severn Trent Water was presented with the award on Monday 14th December at the Utility Industry Achievement Awards ceremony in London

The award judges of the '2009 Utility Company of the Year' commended Severn Trent Water for its "professionalism, willingness to engage and good practice in dealings across the spectrum from customers to the supply chain". The judges believe "the company's ability to learn the lessons of difficult years and use them to transform performance" would see Severn Trent continue to make strides in the future.

Tony Wray, chief executive of Severn Trent said: "This national award is the latest milestone on Severn Trent's journey of continuous improvement. It results from a clear and focused programme in which we drive for ever-higher standards to achieve better levels of customer satisfaction and improve our environmental, financial and regulatory performance.

"2009 has seen us delivering further improvements in reducing customer complaints, tackling sewer flooding and increasing the reliability of water supplies across our region. And yet we still have further to go in sustaining and building on these improvements."

[masurenguy] 27/11/2009 17:30

MW state that Analysts think that there will just be a 5% cut in next years dividend resulting in a projected 6.3% yield in 2010.

[miata] 27/11/2009 09:08

They expect dividend cuts but no rights issues.

[scotty1973] 27/11/2009 08:21

what are the brokers saying on dividends / rights issues

[careful] 26/11/2009 16:29

today has been much more enjoyable because the rest of the market is tanking.

[beardmore] 26/11/2009 14:56

There looks to be very little resistance until 1080.

[hectorp] 26/11/2009 14:36

This is about the only UP share today, and the chart suggests more to come.

As gold investor, this is a handy 'hedge' providing some sector diversification. So I'm in ( for the ISA)

[scotty1973] 26/11/2009 14:30

careful - in theory it shouldnt affect investment, just profits.

[miata] 26/11/2009 14:23

Difficult to see that the cost of capital (average for the next five years) should not be lower than it has been (average for the last five years).