Severn Trent Water announce rise in profits

Severn Trent has reported a 2.6% rise in underlying pre-tax profit to £281M in the company’s half-year financial results.

The Company managed to increase profitability despite a flat group turnover, with rise coming from efficiency savings being made by cutting costs and streamlining operations.

CEO at Severn Trent, Liv Garfield, said:”We are committed to delivering continued out-performance for the benefit of our customers, colleagues and shareholders, having already delivered tangible results in the first half. Thanks to the great work of our teams we have now secured all £372 million of our targeted AMP6 efficiencies while also delivering better service to our customers.

“Through more intensive management of our network we are seeing reduced supply interruptions, lower sewer flooding incidents and faster incident response times.

“Our renewable energy programme continues its rapid roll out and we are on track to generate the equivalent of 50 per cent of our energy needs by 2020.

Ms Garfield said the Company had focussed upon creating new avenues for customers to be kept informed on any on-going work near their homes to help work around any potential disruption. She also said Severn Trent were the only water utility company to offer a round the clock service via Twitter.

Ms Garfield commented: “All of our efforts to improve our service have helped drive down the number of complaints from customers by a further 35 per cent.”

“In addition, we’ve invested £236M in the last six months, which has helped reduce the risk of sewer flooding, water supply interruptions and serious pollution incidents.”

“Alongside all of this, our eight million customers across the Midlands and mid-Wales are enjoying the lowest average combined water and sewerage bills. And it’ll stay that way right the way through to 2020.”

Severn Trent confirmed back in February that its average combined bill would remain the lowest in the industry for the next five years. They also pledged to spend £3.3Bn, the equivalent of £785 per household or business over the next five years in an effort to improve services.

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