TIDMSVT
RNS Number : 4931Z
Severn Trent PLC
03 September 2018
LEI: 213800RPBXRETY4A4C59
Submission of business plan for the period 2020-2025
Severn Trent Plc has today submitted Final Business Plans to
Ofwat for its subsidiaries Severn Trent Water and Hafren Dyfrdwy
Cyfyngedig for the regulatory period 2020-2025.
This marks a milestone in a process that has involved our
broadest, most diverse and most detailed customer research
undertaken to date, including the creation of a 15,000 strong
online consumer panel, directly engaging with almost 32,000
customers and analysing 1.9 million customer interactions.
As a result, we have been able to submit plans that truly
reflect what customers have told us they want. For Severn Trent
Water Customers this includes a real bill reduction of 5%(1) -- the
largest in two decades, and a commitment to triple the number of
customers we help through our social tariff schemes. To support
this bill reduction, we will use our innovation and commercial
pipelines to deliver a 13% efficiency in spending, with total
expenditure of GBP6.6 billion over the 5 years.
Our plan shows our continuing ambition to improve the service we
provide our customers, with stretching performance commitments and
a RORE range for ODIs of -3.0% to +2.6%. We will invest in our
assets to protect water supplies for generations to come,
contributing to double-digit growth(2) in our RCV over the 5-year
period, financing the business responsibly with average gearing of
63.6%.
Additionally, we are proposing for a new community dividend of
1% of profits(3) each year, to support communities in the Severn
Trent region.
Hafren Dyfrdwy customers can expect average combined bills to
continue to be the lowest in Wales, whilst we target our most
ambitious improvements in the areas customers have told us matter
most, helping twice as many people who struggle with their bills in
the process. We will invest in our critical infrastructure and
undertake our largest programme of environmental investment in 20
years, for the benefit of our Welsh communities and the environment
for generations to come.
Ofwat will publish initial feedback of business plans in late
January 2019.
Details of the plans and an investor summary can be found on the
Severn Trent website;`
https://www.severntrent.com/investors/company-information/strategy-and-plan/business-plan/
A webcast and conference call with Liv Garfield, Chief
Executive, James Bowling, Chief Financial Officer and Tony
Ballance, Director, Strategy and Regulation, will be held tomorrow,
4 September at 12.00 (UK time) with an opportunity for Q&A.
The following link will direct you to the webcast:
https://edge.media-server.com/m6/p/8m7yo8sj
To dial into the audio, the details are as follows:
-- UK and International dial in: +44 (0)330 336 9411
-- UK free phone dial in: 0800 279 7204
-- US free phone dial in: 888-204-4368
-- Conference code: 6687865
As a reminder we will be presenting the plan in more detail at
our Capital Markets Day on 14 September. If you wish to attend,
please RSVP to investorrelations@severntrent.co.uk
1. 5% reflects real bill reduction in CPIH prices.
2. RCV growth forecast is in nominal prices
3. Profit is defined as Profit for the year as reported within
Severn Trent Water Limited's Annual Performance Report.
Enquiries
Investors & Analysts
Richard Eadie Severn Trent Plc +44 (0) 7889 806578
Head of Investor Relations
Rachel Martin Severn Trent Plc +44 (0) 7824 624011
Investor Relations Manager
Media
Press Office Severn Trent Plc +44 (0) 247 771 5640
Jonathan Sibun Tulchan +44 (0) 207 353 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', 'estimates'
or words with a similar meaning, 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 and Accounts
(which have not been updated since the date of its publication);
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. No assurances can be given that the
forward-looking statements in this document will be realised. This
document speaks as at the date of publication. Save as required by
applicable laws and regulations, Severn Trent does not intend to
update any forward-looking statements and does not undertake any
obligation to do so. Past performance of securities of Severn Trent
Plc cannot be relied upon as a guide to the future performance of
securities of Severn Trent Plc.
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).
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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