Last checked at 15 Jul 2015 07:00
15 July 2015
Severn Trent Plc Trading Update
for the period 1 April 2015 to 14 July 2015
There has been no material change to business performance or outlook since the Preliminary Results on 22 May 2015. The Board considers that the Group will deliver trading performance consistent with its expectations and prior guidance, with the exception of the interest charge for the full year, which is now expected to be lower year on year due to lower expectations for RPI and LIBOR rates.
We continue to make very good progress on delivering efficiency savings across Severn Trent Water, and have made a good start to our AMP6 capital programme.
Prior technical guidance for the full year 2015/16 included:
· Wholesale Totex (total expenditure) is expected to be £1,030 million to £1,060 million, of which 34.7% will be capitalised onto the RCV.
· Operating costs under IFRS are expected to be lower year on year due to the impact of the organisational changes and the supply chain efficiencies already announced.
· We estimate net capital expenditure (cash) under IFRS will be £410 million to £430 million. In addition, we expect a further £125 million to £135 million of net infrastructure renewals expenditure, which will be charged to the income statement.
· In Business Services we continue to expect growth in revenues and PBIT year on year.
· The effective current tax rate for the group for 2015/16 is expected to be between 17% and 19%.
· The dividend is set to be 80.66p for 2015/16.
Severn Trent Plc will announce its Interim results for the period ending 30 September 2015 on 26 November 2015.
Enquiries:
John Crosse | Severn Trent Plc | 0207 353 4200 (on the day) |
Head of Investor Relations | 02477 715000 | |
Chris Hughes / Martha Walsh | Tulchan Communications | 0207 353 4200 |
Cautionary statement regarding Forward Looking Statements
This document contains statements that are, or may be deemed to be, 'forward-looking statements' with respect to Severn Trent's financial condition, results of operations and business and certain of Severn Trent's plans and objectives with respect to these items.
Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should', 'expects', 'believes', 'intends', 'plans', 'projects', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates' and, in each case, their negative or other variations or comparable terminology. Any forward-looking statements in this document are based on Severn Trent's current expectations and, by their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or may not occur in the future.
Forward-looking statements are not guarantees of future performance and no assurances can be given that the forward-looking statements in this document will be realised. There are a number of factors, many of which are beyond Severn Trent's control that could cause actual results, performance and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to: the Principal Risks disclosed in our latest Annual Report (which have not been updated since); changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates.
All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Severn Trent or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Subject to compliance with applicable laws and regulations, Severn Trent does not intend to update these forward-looking statements and does not undertake any obligation to do so.
Nothing in this document should be regarded as a profits forecast.
This document is not an offer to sell, exchange or transfer any securities of Severn Trent Plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended).