(Correcting the interim dividend is for financial 2023.)
(Alliance News) - Severn Trent PLC said on Tuesday its pretax profit fell while it declared a higher interim dividend to its shareholders.
The Coventry-based water company said it recorded a pretax profit in the six months that ended September 30 of GBP104.7 million, down 29% from GBP146.9 million a year ago. This compared to a profit swing after tax to GBP78.8 million from a GBP180.0 million loss.
The firm's adjusted basic earnings per share were 29.90 pence, down 45% from 54.00 pence.
It also declared an interim dividend of 42.73 pence for financial 2023, up 4.6% from 40.86 pence in financial 2022.
Shares in Severn Trent were down 1.2% to 2,726.00 pence in London on Tuesday at midday.
Severn Trent said it was increasing its guidance for property profit before interest and tax by a further GBP50 million from its initial GBP100 million target set in 2017, expecting surplus land sales of around GBP150 million until 2032. This followed a half year profit before interest and tax of GBP261.7 million, up 2.4% from GBP255.6 million.
Its profit before interest and tax for the year that ended March 31 was GBP506.2 million, up 7.5% from GBP470.7 million a year prior.
It said it now expected its nominal regulatory capital value to be 36%, its highest growth asset management plan to date.
"We have delivered a robust financial performance leaving us well positioned to support our customers, invest for the long term, and support future growth," said Chief Executive Liv Garfield.
Severn Trent also launched a new 10-year strategy to address underlying causes of poverty in in its operating region, building on its GBP10m community fund investment offering affordability schemes and discounts to customers.
By Greg Rosenvinge; gregrosenvinge@alliancenews.com
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Severn Trent (SVT)