Severn Trent profit falls 6%
Severn Trent says it has made a good start to the 2013-14 financial year despite reporting a 5.8% drop in underlying group pre-tax profit to £141.3M for the six months ending September 2013 on a slightly increased turnover of £922.4M.
The group said customer bills have risen by less than the rate of inflation while it has also continued to manage bad debt effectively, maintaining its bad debt charge at 2.2% of turnover.
The additional £150M capital investment programme continues on track, and the group has invested more than £90M to date cleaning sewers, improving sewage treatment works and reducing leakage.
Since the end of March, Severn Trent said it has made good progress on several of Ofwat's KPIs, including sewer flooding with a reduction of 31%, supply interruptions reducing by 41% and serious pollution incidents down 33%. It has also seen an improvement in customer satisfaction, as measured by the SIM (Service Incentive Mechanism) score and a reducing number of complaints.
Its next area of focus is on two metrics that impact serviceability, namely sewer blockages and water quality at our water treatment works.
Commenting on the half-year results, Severn Trent chief executive Tony Wray said: "We have delivered again on our commitments to our stakeholders, with below inflation rises in customer bills, further investment to deliver operational improvements, higher levels of service to customers and sustainable, progressive returns for shareholders with the interim dividend growing in line with our policy."
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