RE: Severn Trent8 Jun 2022 11:26
I have worked for them both over extensive time periods. The companies themselves are chalk and cheese. SVT very progressive, encouraging inclusive and well managed, all plant equipment and operations well managed maintained and run. PNN the opposite, stiffles innovation, very 'clicky' dictorial management style based on control and fear, workforce full of apathy rather than effort, moral quite poor and operational assets are in the main knackered and needing extensive capex. Its a place for a disinterested robot waiting out for its pension and it performs as such.
As for selling off parts, SVT sold Biffa a good number of years ago, but that was long enough back to have no current bearing on sp. PNN fancy themselves as an aquisition business, took over Bournemouth (supposedly to integrate but effectively closed it down), recently took over Bristol Water, suggest same strategy will play out. Return of cash/share consolidation occured because they couldnt find anything else to buy with it apparantly, but they did give quite a bit away on spurious schemes, such as free shares for customers, 1 in 16 took the offer up.
Viluntarily took over the water supply to Isles of Scilly as pr exercise.No other company wanted it or expressed an interest. The water on Scilys is all from contaminated formally private groundwater sources or rainfall (DWI give an exception to mainland water legal standards there currently as it is so bad). A HUGE Capex spend programme is needed to bring the island upto the legal standards elsewhere in the UK, and the DWI are now looking very very closely at enforcing this, now they have suckered PNN to 'step up' and take it over the responsability.
Well theres a bit to chew on i suppose, i expect unclue didnt factor in the return of capital into his analogy, but for the only time ever in history, i would agree with him that SVT os by far the better bet, even if his figures are dubious as usual.