Business
Interim results for the six months to 30 Sept 2020
Interim results for the six months to 30 Sept 2020.
About this update from Severn Trent Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 5453G\n Severn Trent PLC\n 26 November 2020\n \n \n \n \n Half Yearly Financial Report \n \n \n 26 November 2020\n \n \n Interim results for the six months to 30 September 2020\n \n \n \n \n \n Resilient financials, strong operational performance, continued investment\n \n \n \n I\n nvestment and performance culture delivers strong operational performance:\n \n \n · Industry leaders in environmental performance with 4* EPA accreditation from the Environment Agency.\n \n · On track for full year ODI reward of at least £25 million1 driven by record performance in reducing environmental pollutions and customer blockages while delivering a strong start to ambitious biodiversity plans.\n \n · Continued customer focus with improving UK Customer Satisfaction Index scores with both customer complaints and customer experience measures on track for ODI reward in year one.\n \n · Improving water performance across key customer measures such as leakage, water quality and speed of response, delivering forecasted positive net outcome on water for the year.\n \n · Balanced performance across Water, Waste and Environment with c.80% of measures in positive territory.\n \n · Capital investment set to exceed £500 million for the year including accelerated activity on strategic renewable projects.\n \n \n Financially resilient results and strong liquidity:\n \n \n · Group turnover of £888 million2 in line with expectations, down £22 million (2.5%), including £33 million as a result of consumption, largely driven by COVID-19 related decrease in metered revenue. Ofwat regulatory model allows us to recover this revenue in two years.\n \n · Group underlying PBIT3 of £226 million, down £61 million (21.2%) and Group reported PBIT of £225 million, down £61 million (21.3%), both impacted by reduced revenue, increased bad debt provisioning for COVID-19, higher depreciation and timing of property profits.\n \n · Effective interest cost4 reduced by a further 40 bps to 3.3%, from 3.7% at the full year.\n \n · Strong financial resilience following sustainable bond issue £300 million and one year extension of our RCF - £890 million of undrawn facilities.\n \n · Underlying basic EPS5 of 51.3 pence (down 25.4%) and basic EPS of 42.7 pence (down 30.8%), r...