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SVT Severn Trent Plc

2,470.00
-70.00 (-2.76%)
28 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Severn Trent Plc LSE:SVT London Ordinary Share GB00B1FH8J72 ORD 97 17/19P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  -70.00 -2.76% 2,470.00 2,477.00 2,479.00 2,544.00 2,474.00 2,535.00 817,378 16:35:02
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Water Supply 2.17B 132.2M 0.4420 56.04 7.41B

Severn Trent PLC Trading Statement (4348L)

19/07/2017 7:00am

UK Regulatory


Severn Trent (LSE:SVT)
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TIDMSVT

RNS Number : 4348L

Severn Trent PLC

19 July 2017

LEI: 213800RPBXRETY4A4C59

Severn Trent Plc

Trading Update for the period 1 April to 19 July 2017

Severn Trent, one of the leading water and waste water companies in the UK, today announces a trading update for the period to 19 July 2017.

Our focus continues to put the customer at the heart of everything we do. We have made a good start towards delivering our target net reward for 2017/18 customer ODI(1) outperformance of around GBP23 million, whilst also continuing to work towards delivering totex(2) efficiencies of GBP770m in AMP6(3) . We are making good progress on our business plan for AMP7(4) , which will be submitted to Ofwat in September 2018.

On 11 July 2017, Ofwat published its draft methodology consultation for PR19(5) . As expected, PR19 looks set to be a challenging review. However, we are encouraged by the opportunities of higher financial returns for ambitious and innovative companies. On 14 July 2017, Liv Garfield, Chief Executive and Dr Tony Ballance, Director, Strategy & Regulation, hosted a webcast discussing our views on the methodology consultation in more detail. This can be accessed via our website at www.severntrent.com

Following the successful acquisition of Dee Valley in February 2017, integration of the business is progressing well.

We are also encouraged by the ongoing progress of our Water Plus joint venture. It has strongly positioned itself in the new market, including winning a number of large multi-site customers such as Kwik-Fit and David Lloyd Leisure.

The sale of our North American business was announced on 3 July 2017. As a consequence of that disposal and the disposal of our Italian business on 23 February 2017, we will be restating our accounts to classify these activities as discontinued operations and have set out the impact of this restatement below.

As a result of the reclassification of our North American business to discontinued operations, the guidance for the remainder of our Business Services segment has been upgraded. We now expect growth in both revenue and profit before interest and tax in this segment, on a like-for-like basis.

Other than the above, there has been no material change to current year business performance or outlook since the full-year 2016/17 results presentation on 23 May 2017. The Board continues to expect that the Group will deliver full-year trading performance in-line with its expectations and prior guidance.

Severn Trent Plc will announce its half-year 2017/18 results for the period ending 30 September 2017 on 23 November 2017.

Notes

   1.     ODI = Outcome Delivery Incentive 
   2.     Totex = total expenditure 
   3.     AMP6 = Asset Management Plan 6, the regulatory period for 2015 to 2020 
   4.     AMP7 = Asset Management Plan 7, the regulatory period for 2020 to 2025 
   5.     PR19 = Price Review 2019 

Restatement of prior-year results following the reclassification of operating services activities in the USA and Italy as discontinued operations

Severn Trent Plc announces the restatement of prior-year results as a consequence of the reclassification of its Operating Services activities in the USA and Italy as discontinued operations. These activities are restated following the sale of the US business announced on 3 July 2017. For the full financial year to 31 March 2018, the results for the Group will therefore include three months of discontinued operations for the US Operating Services business.

The following restatement of 2016/17 half-year and full-year data is to assist investors and analysts in their financial modelling of the Group, in advance of the half-year 2017/18 results, which will be announced on 23 November 2017.

Summary restatement

Prior year ended 31 March 2017:

 
                            Regulated 
                                Water 
                            and Waste    Business    Corporate   Consol 
                                Water    Services    and Other     adjs     Group 
                                 GBPm        GBPm         GBPm     GBPm      GBPm 
 Turnover: 
 From continuing 
  operations 
 As previously reported       1,528.8       309.6          6.2   (25.4)   1,819.2 
 Operating Services 
  US and Italy                      -     (181.2)            -        -   (181.2) 
 Restated                     1,528.8       128.4          6.2   (25.4)   1,638.0 
------------------------  -----------  ----------  -----------  -------  -------- 
 
 From discontinued 
  operations(1) 
 As previously reported             -        66.0            -        -      66.0 
 Operating Services 
  US and Italy                      -       181.2            -        -     181.2 
 Restated                           -       247.2            -        -     247.2 
------------------------  -----------  ----------  -----------  -------  -------- 
 
 Profit before interest, tax and exceptional items 
  (PBITE)(2) : 
 From continuing 
  operations 
 As previously reported         494.7        37.2        (6.0)    (0.8)     525.1 
 Operating Services 
  US and Italy                      -       (5.0)            -        -     (5.0) 
 Restated                       494.7        32.2        (6.0)    (0.8)     520.1 
------------------------  -----------  ----------  -----------  -------  -------- 
 
 From discontinued 
  operations 
 As previously reported             -       (1.3)            -        -     (1.3) 
 Operating Services 
  US and Italy                      -         5.0            -        -       5.0 
 Restated                           -         3.7            -        -       3.7 
------------------------  -----------  ----------  -----------  -------  -------- 
 

-- Group turnover from continuing operations reduced by GBP181.2 million. Group PBITE from continuing operations is restated by GBP5.0 million.

-- Business Services turnover from continuing operations reduced by GBP181.2 million and PBITE from continuing operations is restated by GBP5.0 million. No other segment was impacted.

-- Discontinued operations turnover increased by GBP181.2 million and PBITE increased by GBP5.0 million.

-- Of the adjustment to turnover of GBP181.2 million, GBP160.5 million relates to Operating Services US and GBP20.7 million to Italy.

-- Of the adjustment to PBITE of GBP5.0 million, GBP4.4million relates to Operating Services US and GBP0.6 million to Italy.

Summary restatement

Prior six months ended 30 September 2016:

 
                            Regulated 
                                Water 
                            and Waste    Business    Corporate   Consol 
                                Water    Services    and Other     adjs    Group 
                                 GBPm        GBPm         GBPm     GBPm     GBPm 
 Turnover: 
 From continuing 
  operations 
 As previously reported         765.2       151.0          0.6   (10.0)    906.8 
 Operating Services 
  US and Italy                      -      (86.8)            -        -   (86.8) 
 Restated                       765.2        64.2          0.6   (10.0)    820.0 
------------------------  -----------  ----------  -----------  -------  ------- 
 
 From discontinued 
  operations(1) 
 As previously reported             -        68.8            -        -     68.8 
 Operating Services 
  US and Italy                      -        86.8            -        -     86.8 
 Restated                           -       155.6            -        -    155.6 
------------------------  -----------  ----------  -----------  -------  ------- 
 
 Profit before interest tax and exceptional items 
  (PBITE): 
 From continuing 
  operations 
 As previously reported         268.9        16.1        (4.7)    (1.9)    278.4 
 Operating Services 
  US and Italy                      -       (2.7)            -        -    (2.7) 
 Restated                       268.9        13.4        (4.7)    (1.9)    275.7 
------------------------  -----------  ----------  -----------  -------  ------- 
 
 From discontinued 
  operations(1) 
 As previously reported             -         2.4            -        -      2.4 
 Operating Services 
  US and Italy                      -         2.7            -        -      2.7 
 Restated                           -         5.1            -        -      5.1 
------------------------  -----------  ----------  -----------  -------  ------- 
 

-- Group turnover from continuing operations reduced by GBP86.8 million. Group PBITE from continuing operations is restated by GBP2.7 million.

-- Business Services turnover from continuing operations reduced by GBP86.8 million and PBITE from continuing operations is restated by GBP2.7 million. No other segment was impacted.

-- Discontinued operations turnover increased by GBP86.8 million and PBITE increased by GBP2.7 million.

-- Of the adjustment to turnover of GBP86.8 million, GBP74.8 million relates to Operating Services US and GBP12.0 million to Italy.

-- Of the adjustment to PBITE of GBP2.7 million, GBP2.5 million relates to Operating Services US and GBP0.2 million to Italy.

Notes

1. Discontinued operations previously reported comprises the non-household retail business that was sold to Water Plus in June 2016

   2.     PBITE = Profit Before Interest, Tax and Exceptional items 

Enquiries

 
 Ruban Chandran         Severn Trent Plc    +44 7957 166615 
 Head of Investor 
  Relations 
 
 Richard Tunnicliffe    Severn Trent Plc    +44 7834 419722 
 Investor Relations 
  Manager 
 

Appendix

Restatement of P&L for the prior year ended 31 March 2017:

The following P&L summaries are provided to assist the reader in comparing continued and discontinued operations side by side.

Ø Group

 
                     Continuing                          Discontinued                          Total 
                    ----------------------------------  ---------------------------------- 
 
                                  Operating                           Operating 
                                   Services                            Services 
                     Previously      US and              Previously      US and 
                       reported       Italy   Restated     reported       Italy   Restated 
                           GBPm        GBPm       GBPm         GBPm        GBPm       GBPm        GBPm 
 Turnover               1,819.2     (181.2)    1,638.0         66.0       181.2      247.2     1,885.2 
                    -----------  ----------  ---------  -----------  ----------  ---------  ---------- 
 
 Profit before 
  interest tax 
  and exceptional 
  items (PBITE)           525.1       (5.0)      520.1        (1.3)         5.0        3.7       523.8 
 Exceptional 
  items                    18.6           -       18.6         14.6           -       14.6        33.2 
                    -----------  ----------  ---------  -----------  ----------  ---------  ---------- 
 Profit before 
  interest and 
  tax                     543.7       (5.0)      538.7         13.3         5.0       18.3       557.0 
 Net finance 
  costs                 (204.0)       (1.1)    (205.1)            -         1.1        1.1     (204.0) 
 Gains/(losses) 
  on financial 
  instruments             (1.8)           -      (1.8)            -           -          -       (1.8) 
 Share of results 
  of associates 
  and joint 
  ventures                (1.8)           -      (1.8)            -           -          -       (1.8) 
                    -----------  ----------  ---------  -----------  ----------  ---------  ---------- 
 Profit before 
  tax                     336.1       (6.1)      330.0         13.3         6.1       19.4       349.4 
 Taxation                 (7.1)         0.6      (6.5)          0.3       (0.6)      (0.3)       (6.8) 
 Profit after 
  tax                     329.0       (5.5)      323.5         13.6         5.5       19.1       342.6 
                    -----------  ----------  ---------  -----------  ----------  ---------  ---------- 
 
 

Ø Business Services

 
                     Continuing                          Discontinued                        Total 
                    ----------------------------------  ---------------------------------- 
 
 
                                  Operating                           Operating 
                                   Services                            Services 
                     Previously      US and              Previously      US and 
                       reported       Italy   Restated     reported       Italy   Restated   Total 
                           GBPm        GBPm       GBPm         GBPm        GBPm       GBPm    GBPm 
 Turnover                 309.6     (181.2)      128.4         66.0       181.2      247.2   375.6 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------ 
 
 Profit before 
  interest tax 
  and exceptional 
  items (PBITE)            37.2       (5.0)       32.2        (1.3)         5.0        3.7    35.9 
 Exceptional 
  items                     2.6           -        2.6         14.6           -       14.6    17.2 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------ 
 Profit before 
  interest and 
  tax                      39.8       (5.0)       34.8         13.3         5.0       18.3    53.1 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------ 
 
 

Restatement of P&L for the six months ended 30 September 2015:

The following P&L summaries are provided to assist the reader in comparing continued and discontinued operations side by side.

Ø Group

 
                     Continuing                          Discontinued                         Total 
                    ----------------------------------  ---------------------------------- 
 
                                  Operating                           Operating 
                                   Services                            Services 
                     Previously      US and              Previously      US and 
                       reported       Italy   Restated     reported       Italy   Restated 
                           GBPm        GBPm       GBPm         GBPm        GBPm       GBPm     GBPm 
 Turnover                 906.8      (86.8)      820.0         68.8        86.8      155.6    975.6 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------- 
 
 Profit before 
  interest tax 
  and exceptional 
  items (PBITE)           278.4       (2.7)      275.7          2.4         2.7        5.1    280.8 
 Exceptional 
  items                    21.0           -       21.0         20.6           -       20.6     41.6 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------- 
 Profit before 
  interest and 
  tax                     299.4       (2.7)      296.7         23.0         2.7       25.7    322.4 
 Net finance 
  costs                  (98.1)       (0.4)     (98.5)            -         0.4        0.4   (98.1) 
 Gains/(losses) 
  on financial 
  instruments            (15.4)           -     (15.4)            -           -          -   (15.4) 
 Share of results 
  of associates 
  and joint 
  ventures                (0.9)           -      (0.9)            -           -          -    (0.9) 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------- 
 Profit before 
  tax                     185.0       (3.1)      181.9         23.0         3.1       26.1    208.0 
 Taxation                   2.9         0.4        3.3        (0.5)       (0.4)      (0.9)      2.4 
 Profit after 
  tax                     187.9       (2.7)      185.2         22.5         2.7       25.2    210.4 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------- 
 
 

Ø Business Services

 
                     Continuing                          Discontinued                        Total 
                    ----------------------------------  ---------------------------------- 
 
 
                                  Operating                           Operating 
                                   Services                            Services 
                     Previously      US and              Previously      US and 
                       reported       Italy   Restated     reported       Italy   Restated   Total 
                           GBPm        GBPm       GBPm         GBPm        GBPm       GBPm    GBPm 
 Turnover                 151.0      (86.8)       64.2         68.8        86.8      155.6   219.8 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------ 
 
 Profit before 
  interest tax 
  and exceptional 
  items (PBITE)            16.1       (2.7)       13.4          2.4         2.7        5.1    18.5 
 Exceptional 
  items                     0.6           -        0.6         20.6           -       20.6    21.2 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------ 
 Profit before 
  interest and 
  tax                      16.7       (2.7)       14.0         23.0         2.7       25.7    39.7 
                    -----------  ----------  ---------  -----------  ----------  ---------  ------ 
 
 
 

Investor timetable

 
     Dividend payment date (Final)       21 July 2017 
------------------------------------  ----------------- 
     Half-year results announcement    23 November 2017 
      2017/18 
------------------------------------  ----------------- 
     Ex-dividend date (Interim)        30 November 2017 
------------------------------------  ----------------- 
     Record date (Interim)             1 December 2017 
------------------------------------  ----------------- 
     Dividend payment date (Interim)    5 January 2018 
------------------------------------  ----------------- 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

TSTSFSFMAFWSEIW

(END) Dow Jones Newswires

July 19, 2017 02:00 ET (06:00 GMT)

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