(Alliance News) - Severn Trent PLC on Wednesday reported strong growth after a year of record capital investment.
The Coventry-based water utility company said in the year ended March 31, pretax profit was 20% higher at GBP201.3 million from GBP167.9 million the year prior.
Revenue rose 8.0% to GBP2.34 billion from GBP2.17 billion.
This increase was largely attributed to 7.8% revenue growth within the company's Regulated Water & Wastewater business to GBP2.15 billion from GBP2.0 billion.
The company increased its final dividend by 9.4% to 70.10p from 64.09p, giving a total dividend of 116.84p, also up 9.4%, from 106.82p.
Despite the industry being plagued by the ongoing UK water scandal, Severn Trent said it achieved its best ever leakage performance maintaining the highest four star status from the environment agency for the fifth consecutive year.
Severn Trent was responsible for over 60,000 sewage spills in 2023, about a third higher than the prior year.
A record GBP1.2 billion was invested by the company into improving performance levels.
In September, the company raised GBP1 billion after issuing new shares to both retail and institutional investors.
Chief Executive Liv Garfield said: "The extra GBP1 billion... will help us continue to transform the network, reducing spills, improving river health and providing our customers with the best and most reliable service
"We are planning record levels of investment in the coming years, while also keeping bills the second lowest in the country."
In its five-year plan submitted to the water regulator Ofwat, Severn Trent said it wants to increase customer bills to GBP546.00, up 36% from an average of GBP402.63 between 2020 and 2025.
Looking ahead, the company expects to see further revenue growth from Regulated Water & Wastewater and is targeting a total dividend of 121.71p for the current financial year.
Its capital investment programme will be expanded again with Severn Trent planning to spend between GBP1.3 billion to GBP1.5 billion.
Severn Trent shares were up 0.6% to 2,628.00 pence each in London on Wednesday morning.
By Elijah Dale, Alliance News reporter
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Severn Trent (SVT)