Severn Trent Delivers Solid Start to New Regulatory Period
Why we think this is neutral
The trading update from Severn Trent Plc suggests the company is performing in line with expectations for the current financial year. While the update highlights some positive operational improvements, such as reductions in leakage and storm overflow spills, it does not provide detailed financial information or forward-looking guidance. Without clear indications of profit, revenue, or cash flow growth, the overall sentiment is neutral. The company appears to be executing well on its operational targets, but the lack of quantitative performance metrics limits the ability to assess the strength of the underlying business.
Key Points
- Financial performance for the year remains on track, in line with guidance
- Expect to deliver at least £25m in ODI reward in FY26
- Operational improvements in leakage and storm overflow spills
- Capital expenditure expected to be £1.7bn to £1.9bn in FY26
- Interim results for FY26 to be announced on 19 November 2025
Summary
In its trading update, Severn Trent Plc reported a strong start to the new regulatory period (AMP8), with financial performance for the year expected to be in line with guidance. The company anticipates delivering at least £25m in Outcome Delivery Incentive (ODI) reward in FY26, driven by improvements in leakage and reductions in storm overflow spills. Capital expenditure is expected to be between £1.7bn and £1.9bn in FY26. The company will announce its interim results for FY26 on 19 November 2025.