Severn Trent sees no change to performance

By James Pugh | Business | Published:

Water firm Severn Trent said there had been no material change to its performance since it issued a trading update at the end of January.

Severn Trent serves millions of customers across the Midlands and Mid Wales

Severn Trent, which serves millions of customers across the Midlands and Mid Wales, said it still expected to deliver a full-year trading performance, for the 12 months through March 2020, in line with its previous guidance.

The company said it remained on track to deliver at least £25 million of net customer outperformance payments, as previously guided.

It said: "We have a robust financial liquidity position extending out to early 2022 to manage through the current uncertainty, recently supplemented by £200 million of US private placement receipts in the week commencing March 23 2020."

But Severn Trent said restrictions implemented by the UK Government to limit the spread of Covid-19 were likely to have a "material impact" on many of the business customers of joint venture company WaterPlus.

"The company has been making good progress on improving its underlying operating performance, however this new challenge will significantly impact the pace and certainty of its recovery plan.

"Given the uncertainty of how the situation will develop, we will continue to closely monitor our cash flows and update our contingency planning accordingly," it added.

James Pugh

By James Pugh

Shropshire Star Business and Farming Editor.

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