Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Severn Trent Lifts Dividend By 8.2% to Yield 3.7%

LONDON -- Severn Trent  (LSE: SVT  ) this morning released its preliminary results for the year to March 31, 2013, with group turnover rising 3.4% to £1.83 billion.

Pre-tax profit -- including losses on financial instruments of £45.3 million -- rose 37.3% to £215.2 million, but this was aided by a decrease of £22.4 miliion in the aforementioned losses compared to 2012.

Underlying group pre-tax profit fell 3.3% to £266.3 million, with the company claiming bad weather in the early part of the year drove higher operational activities and costs at the regulated business, Severn Trent Water.

Severn Trent Services, the non-regulated business, saw continued investment in business development, with management stating they see "future growth potential" in the area.

Chief executive Tony Wray commented:

Our focus on continuous improvement has once again delivered a good financial and operational performance.

From a financial perspective, Severn Trent Water delivered further efficiency gains, with PBIT stable year on year, despite incurring additional infrastructure investment costs and costs related to the adoption of private drains and sewers (PDaS), which together totalled £25 million.

In our non-regulated business we delivered like for like revenue growth of 5% as expected, and we continued to invest in growth areas of the business.

It has been a busy few weeks for the water company, after a bid was made by a consortium made up of Borealis Infrastructure Management, the Kuwait Investment Office and Universities Superannuation Scheme Limited -- and swiftly rejected after Severn Trent's board claimed that the proposal completely failed to recognise the group's value.

With the shares rising marginally to 2,038p in early trade, the company now yields a healthy 3.7%. Management also confirmed that the full-year dividend for 2013/14 is set to be lifted by 6%, in line with Severn Trent's RPI+3% growth policy, to 80.40p.

Of course, whether today's results make Severn Trent a 'buy', is something only you can decide. But if you are looking for alternative investment opportunities, this exclusive wealth report reviews five particularly attractive possibilities.

Indeed, all five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!

Just click here for the exclusive report -- it's free.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2460318, ~/Articles/ArticleHandler.aspx, 9/29/2016 8:11:40 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,143.45 -195.79 -1.07%
S&P 500 2,151.13 -20.24 -0.93%
NASD 5,269.15 -49.39 -0.93%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/29/2016 12:01 PM
SVT $2506.90 Up +23.90 +0.96%
Severn Trent CAPS Rating: No stars