Severn Trent Investors - SVT

Severn Trent Investors - SVT

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Stock Name Stock Symbol Market Stock Type
Severn Trent Plc SVT London Ordinary Share
  Price Change Price Change % Stock Price Last Trade
1.00 0.03% 2,980.00 10:25:04
Open Price Low Price High Price Close Price Previous Close
3,009.00 2,975.00 3,009.00 2,979.00
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bountyhunter: Investor Timetable Ex-dividend date (Final) 11 June 2020 Dividend record date (Final) 12 June 2020 ----------------- DRIP election date (Final) 26 June 2020 ----------------- AGM 15 July 2020 Q1 Trading Update ----------------- Final dividend payment date 17 July 2020 ----------------- Half year results announcement 2020/21 26 November 2020 ----------------- Ex-dividend date (Interim) 3 December 2020 ----------------- Dividend record date (Interim) 4 December 2020 ----------------- DRIP election date (Interim) 11 December 2020 ----------------- Interim dividend payment date 6 January 2021 ----------------- For more information please visit: hxxps://
skinny: Trading Update for the period 1 October 2017 to 7 February 2018 Severn Trent, a leading UK water and waste water company, today provides its trading update. Financial outlook: The Board continues to expect that the Group will deliver FY17/18 trading performance in line with its expectations and guidance previously disclosed at the HY17/18 results presentation on 23rd November 2017. We also reaffirm that at least £50 million customer ODI(1) outperformance payments are expected to be earned this year. Delivering sustainable performance for all stakeholders: AMP6(2): We are focused on providing benefits to our customers, communities, colleagues and investors, and we have generated sector-leading outperformance payments on key customer ODIs and continue to do well year-to-date. We have positive momentum on Waste, particularly on internal and external sewer flooding, category 3 pollutions and serious pollution incidents. We re-confirm that we will hit the AMP6 outperformance cap(3). On Water, we have had more supply interruptions than normal in the last quarter, but are encouraged by the reduction in water quality complaints, which were down 12% year on year. We confirm that we expect to earn at least £50 million customer ODI(1) outperformance payments across Waste and Water this year. We continue to work hard on improving our SIM(4) scores. We also note that we have one of the sector-leading scores in CCW's(5) independent annual survey on what our customers think. We have delivered material reductions in our cost of finance. Since our HY17/18 results announcement, a £400m fixed-rate sterling bond with a coupon of 6% matured and was refinanced in part with a £250m five-year sterling bond with a coupon of 1.625%. We continue to explore varied sources of finance to help positon us as an upper-quartile performer in AMP7. AMP7(2): Ofwat announced its PR19(6) Final Methodology in December 2017, providing welcome clarity on upcoming plans. We expected a tough review, recently restructuring our wholesale business to improve operational effectiveness and our customers' experience. We are encouraged by the enhanced incentive regime, creating strong outperformance opportunities. We are positioning ourselves for continued success in AMP7. To assist AMP7 planning, we have launched our largest ever customer engagement programme, including a community panel of 10,000 customers, a review of two million customer contacts and analysis of over seven million social media conversations. This helps us understand the core service improvements and wider social and environmental initiatives our customers expect, thereby underpinning future growth in our RCV(7). Corporate social responsibility: We are conscious of Severn Trent's role in society through the impact on our community, the wider environment, and the importance of workplace diversity. Our work in the community delivers benefits through our extensive customer education and employee volunteering programmes. We are keen to play our part in supporting social mobility and we have a highly-rated apprentice programme. We have reported a gender pay gap of 2.4% and, while we have even further to go, we have made strong progress in supporting workplace diversity and gender pay equality. We have a strong record of environmental performance and through our renewable energy business we are on track to generate the equivalent of 50% of our energy needs by 2020.
redartbmud: 28 January 2015 Severn Trent Plc - acceptance of final determination for Severn Trent Water and new dividend policy Severn Trent Plc today announces that Severn Trent Water has accepted the Final Determination for the period 2015-2020 published by Ofwat on 12 December 2014. This means that our customers will continue to have the lowest combined average bills in the land until at least 2020. Severn Trent Water bills will fall in real terms over the next five years, by which time they will be around £60 below the industry average. Next year average bills will fall to £329, from £333. We are proud that Severn Trent customers have already had six consecutive years of the lowest average combined bills and best value in Britain. We are also making provision to help four times as many customers who struggle to pay their bill over the next five years. We are committed to our largest five year investment programme ever, totaling £6.2 billion* in real terms, the majority of which will help to support the economy in the Midlands. This includes a capital investment programme of £3.3 billion* to improve service and quality for customers, which will help grow our RCV1 (Regulatory Capital Value) to c. £10 billion by 2020. Although c. £30 million of investment on improving water quality was not included in the Final Determination, we have nevertheless decided to keep it in our plan. We will fund this additional investment using savings achieved by operating our business more efficiently. We are also committed to significantly improving customer service performance through our suite of ODIs (Outcome Delivery Incentives). These include fixing 100% of visible leaks within 24 hours and reducing interruptions to supply by more than 50%. The next five years will also see a greater focus on reducing flooding, employing innovative solutions to improve river quality such as catchment management and a wide ranging community educational programme to promote water conservation and reduce sewer blockages. We will also undertake one of our largest ever capital investment projects to improve the resilience of water supplies to our one million customers in Birmingham. The price review has been a challenging process and the Final Determination contains stretching objectives and requires significant improvements in operating efficiencies. However, the Board believes it can meet the required operational and capital expenditure levels whilst delivering on its performance commitments. This belief is based on the process improvements made over the current regulatory period and plans already in place to deliver the efficiencies contained in the business plan for 2015-2020. In order to deliver our plan and reflecting the lower cost of capital allowed by Ofwat, Severn Trent has reviewed its financing plan and dividend policy. Going forward, the Company intends to manage its existing debt portfolio and future debt issuance to increase the proportion of debt which is at floating rates. In addition, the Board has decided to move towards a net debt/RCV gearing ratio of around 62.5% which is in line with Ofwat's notional assumption. As part of this move Severn Trent will commence a £100 million share buy back programme. Severn Trent is also announcing today its dividend policy for the period 2015-2020. The Board has decided to set the 2015/16 dividend at 80.66p, a reduction of 5% compared to the current year total dividend of 84.90p. Our policy will then be to grow the dividend annually at no less than RPI until March 2020. This replaces the current dividend policy of RPI+3% which runs until March 2015. The Board believes that this financing plan and new dividend policy are commensurate with a sustainable investment grade credit rating. * 2012/13 prices 1. Nominal, assumes year end 2.0% RPI for 14/15 and an average of 3.3% year end RPI for 2015-2020 Liv Garfield, Chief Executive Severn Trent Plc, said: "At Severn Trent we always seek to strike the right balance between the service customers receive, the bills they pay, and returns to investors and we believe our plan for the next five years achieves that balance, delivering better services, better value and a healthier environment. The price review has been a challenging process but has led to a great outcome for customers. We were pleased that our business plan achieved a high approval rating of 88% from customers. We know there is more we need to do to improve our processes and raise our standards, and I'm looking forward to working with the great people in Severn Trent and building on improvements made over the current regulatory period, as we continue to deliver for our customers and communities, shareholders and the environment."
miata: JP Morgan Ofwat has issued a statement this morning regarding Thames Water's application for an interim determination of k (IDoK). The main point of interest is that Ofwat is considering using the substantial effect mechanism to claw back the benefits that Thames Water has received from economic circumstances beyond its control (i.e. high inflation and low interest rates). We believe that this is the first time Ofwat has suggested using this power and it could create an unfortunate precedent for investors in the sector. Following Ofwat's presentation earlier this week when it focused on the industry lowering bills for customers, with an 'indicative' WACC of 4.1%, we believe that investor sentiment towards the quoted water companies may suffer short term. Read-across to the listed companies. Ofwat has made it clear that it is only looking at clawing back economic benefits from Thames and not the other water companies. However, there is a risk that this could set an unfortunate precedent and hence change the perceived risk/ reward for investors in the sector. In conjunction with Ofwat's presentation earlier this week focusing on the potential for customers' bills to fall in the next review period and using an indicative WACC of 4.1% (vanilla, real) we would expect investors to reassess the risk reward for the sector ahead of the regulatory review. We continue to prefer PNN of the listed water companies, as it has less exposure to the regulatory review given the growth in its waste business, Viridor.
holts: I think the board have made a strategic error by not talking to the consortium , they now must perform to a very high standard to keep the share price up and at least if they had talked they could have perhaps squeezed out more money whilst also being able to point out to investors that they did try but unfortunately nothing came of it .
redartbmud: The £5.3 billion bid, valuing Severn at £22 a share, was dismissed by the firm's board within hours of being tabled on Friday. Severn, which supplies 4.2 million customers across the Midlands and parts of Wales, said it failed to recognise the long-term value or future potential of the company. It means the LongRiver consortium must decide whether to put in a new, fourth offer before the expiry of Tuesday's "put up or shut up" deadline or to walk away. The bidders, comprised of Canadian investment group Borealis, the Kuwait Investment Office and Universities Superannuation scheme, previously had a The £5.3 billion bid, valuing Severn at £22 a share, was dismissed by the firm's board within hours of being tabled on Friday. Severn, which supplies 4.2 million customers across the Midlands and parts of Wales, said it failed to recognise the long-term value or future potential of the company. It means the LongRiver consortium must decide whether to put in a new, fourth offer before the expiry of Tuesday's "put up or shut up" deadline or to walk away. The bidders, comprised of Canadian investment group Borealis, the Kuwait Investment Office and Universities Superannuation scheme, previously had a £4.96 billion bid rejected. It is thought that the consortium has grown increasingly concerned at what it perceives as the water company's lack of engagement with it. Rejecting the latest offer on Friday, Severn's chairman Andrew Duff said: "We have held private conversations with LongRiver and made clear that we have no objections to fuller discussions in the event that LongRiver puts forward a proposal which properly reflects the long term value and future potential of Severn Trent." But he added that the board unanimously agreed that the bid was not high enough. It was reported that an increase of around 40p a share would be enough to bring Severn to the table. But LongRiver is thought to be determined that there must be a meeting with the water firm's board before any move can take place. British water companies are prized by investors such as pension funds, sovereign wealth groups and private equity firms for their monopoly over customers and relatively stable earnings, which are tied to inflation. Extracted from the Express & Star newspaper, a publication based in Wolverhampton.
funtimejonny: She has indeed. Institutional Investors still showing interest here though. Mind you, I am always struggling to understand their positions in these type of scenarios, With buys/ sells / shorts / longs / cfds all showing up, it tends to baffle me a little bit. More sophisticated types may be able to grasp this better tham I.
miata: Exactly. Severn Trent, the water giant which this month rejected a Canadian and Kuwaiti takeover approach, today told investors it's worth well over £7 billion - nearly £1 billion more than the price thought to have been offered by the foreign bidders. The utility, which keeps the taps running in 7.7 million British homes, was approached earlier this month with a bid said to be worth just under £20 a share, or £4.7 billion, from Canada's Borealis, the Kuwait Investment Authority and the Universities Superannuation Scheme, a UK pension fund. Severn Trent rejected that bid, saying it "completely fails to recognise the existing and potential value" of the water firm, and today pointed out its regulated capital value - the figure that the industry regulator Ofwat uses to work out the worth of the utility - was up 4% from £7.1 billion in 2010 to £7.4 billion this year. Severn Trent's departing chief executive Tony Wray also highlighted that it was set to hit £8 billion by the end of the current regulatory cycle, in 2015.
miata: A bid approach for utility Severn Trent has been flushed out by a leak. Anyone with a taste for schoolboy puns is laughing like a drain. The mouths of investors are meanwhile watering at the prospect of a £5.3bn buyout. Credit Suisse. The price speculated in the press (£23) suggests a high valuation relative to historical valuations, at a 36% premium to the adjusted 2014E RAB, but in-line with the recent acquisition of Sutton and East Surrey Water. Historic transactions have been at average c25-30% RAB premia –which would suggest a price of c£20-£21/share, on our numbers) It has not confirmed the offer price of c£23 speculated in the Telegraph, saying no proposal has yet been made. The proposed price would reflect an EV of over £10 billion – the biggest transaction in the sector's history. With a fair value of 1,530p – and the stock closed at 1,825p/share – suggesting a c45% probability of an offer is already priced in Goldman £22.50-£23/share valuation for Severn Trent is close to our M&A value of £22.16, which is based on a 30% premium to the March 2014 RAV. A 30-35% premium to RAV (the bid range) would be in line or slightly above historical bids in the sector Historically none of the previous approaches in the water sector that have been announced in the last 10 years have failed in taking over the water company. The main downside risk to the M&A outlook is whether Ofwat in resetting regulated water prices next year makes gains from leveraging up the water companies' balance sheets less attractive. The next main paper from Ofwat is due in the summer (2013). In our view the upside risk from M&A versus the downside risk in fundamental valuations is fairly reflected in the share price of United Utilities, and more than fully reflected in the share price of Pennon. We place our rating and price target on SVT under review. Additional risks to our price targets for SVT and UU are a bid from private equity/infrastructure fund, inflation above/below forecast. For Pennon they are a bid from private equity/infrastructure fund, stronger waste profits, inflation above forecasts. Citigroup With CEO Tony Wray due to leave in 2014 and, in our view, Severn Trent as the best positioned publicly listed water company post the PR14 regulatory review in 2014, we expect a formal bid to materialise and given the timing and the current rate environment, £23/share and 35% premium to RCV seems possible, in our view.
skinny: Statement re Press Speculation NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION 14 May 2013 Severn Trent Plc ("Severn Trent") Confirmation of approach The Board of Severn Trent notes the recent press speculation concerning the possibility of an offer being made for the whole of the issued share capital of Severn Trent. The Board of Severn Trent announces that it has received an approach with a view to making a proposal from a consortium made up of Borealis Infrastructure Management Inc., the Kuwait Investment Office and Universities Superannuation Scheme Limited (together, the "Consortium"). This may or may not lead to an offer being made for Severn Trent. This approach is at a very early stage, no proposal has been made and there can be no certainty that an offer will be made or as to the terms of any such offer, should one be forthcoming. In accordance with Rule 2.6(a) of the Code, the Consortium is required, by not later than 5.00 p.m. on 11 June 2013, to either announce a firm intention to make an offer for Severn Trent in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline can be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code. A copy of this announcement will be available at www.Severn The content of the website referred to in this announcement is not incorporated into and does not form part of this announcement.
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