Business
Trading Statement for the period 1 Oct to 7 Feb
Trading Statement for the period 1 Oct to 7 Feb.
About this update from Severn Trent Plc
[{"type":"text","content":"\n \nRNS Number : 1172E Severn Trent PLC 07 February 2018 \n\nSevern Trent Plc\n \nTrading Update for the period 1 October 2017 to 7 February 2018\n \nSevern Trent, a leading UK water and waste water company, today provides its trading update. \n \nFinancial outlook: The Board continues to expect that the Group will deliver FY17/18 trading performance in line with its expectations and guidance previously disclosed at the HY17/18 results presentation on 23rd November 2017. We also reaffirm that at least £50 million customer ODI(1) outperformance payments are expected to be earned this year. \n \nDelivering sustainable performance for all stakeholders:\n \nAMP6(2): We are focused on providing benefits to our customers, communities, colleagues and investors, and we have generated sector-leading outperformance payments on key customer ODIs and continue to do well year-to-date. \n \nWe have positive momentum on Waste, particularly on internal and external sewer flooding, category 3 pollutions and serious pollution incidents. We re-confirm that we will hit the AMP6 outperformance cap(3). On Water, we have had more supply interruptions than normal in the last quarter, but are encouraged by the reduction in water quality complaints, which were down 12% year on year. We confirm that we expect to earn at least £50 million customer ODI(1) outperformance payments across Waste and Water this year.\n \nWe continue to work hard on improving our SIM(4) scores. We also note that we have one of the sector-leading scores in CCW's(5) independent annual survey on what our customers think. \n \nWe have delivered material reductions in our cost of finance. Since our HY17/18 results announcement, a £400m fixed-rate sterling bond with a coupon of 6% matured and was refinanced in part with a £250m five-year sterling bond with a coupon of 1.625%. We continue to explore varied sources of finance to help positon us as an upper-quartile performer in AMP7. \n \nAMP7(2): Ofwat announced its PR19(6) Final Methodology in December 2017, providing welcome clarity on upcoming plans. We expected a tough review, recently restructuring our wholesale business to improve operational effectiveness and our customers' experience. We are encouraged by the enhanced incentive regime, creating strong outperfo...