# Severn Trent continues to deliver strong operational performance and resilient financial results

- Link: https://www.directorstalkinterviews.com/severn-trent-continues-to-deliver-strong-operational-performance-and-resilient-financial-results/412958754
- Published: 2021-02-04T07:21:53+00:00
- Author: Amilia Stone

**[Severn Trent Plc](https://www.directorstalkinterviews.com/ftse-company/severn-trent/svt.l)**(
LON:SVT) has announced a trading update for the period to 4 February 2021.

**Positive momentum carried through the winter**

Severn Trent continues to deliver strong operational performance and resilient financial
results.

–     **Customer performance** – We are committed to delivering the best possible
service to our customers and despite being set challenging targets for this year
we have invested wisely and worked tirelessly to outperform. In Water we remain 
on track for our best ever performance on a number of measures including the Compliance
Risk Index and water quality complaints. In Waste we have started the AMP^(1) strongly
with 25% fewer blockages and a 15% reduction in pollutions in the calendar year.
Our biodiversity programme is on track to deliver over 2,200ha of enhanced natural
environment, delivering our five-year target in the first year of the AMP^(1).

We remain on or ahead of target for almost 80% of our customer performance measures
and so we are pleased to increase our guidance for outperformance on Customer ODIs
^(2) this year from ‘at least £25 million’ to ‘at least £50 million’. 

–    **Stable outlook for the full year** – We remain confident of delivering our
full-year results in line with expectations and prior guidance. The Severn Trent
Plc Board confirms this year’s final dividend in line with our AMP7^(1) policy.

**Green Recovery investment opportunity**

We are in constructive dialogue with Ofwat and DEFRA on potential investment opportunities
for Severn Trent as part of the Government’s Green Recovery initiative. We submitted
a number of proposals^(3) on 31 January and look forward to continuing our discussions
during the review process, which we expect to conclude by September 2021. As well
as providing meaningful RCV^(4) growth on top of our c.4% growth rate for AMP7^(
1), we believe our proposals would support our environmental ambitions, create much
needed jobs in our region and support national [sustainability](https://www.directorstalkinterviews.com/sustainability-green-stocks-news)
objectives on climate change, flood resilience, river water quality and water consumption.

**Supporting Net Zero and nature**

We are proud to be supporting the UN Race to Net Zero campaign through our Triple
Carbon Pledge. We continue to make good progress and will give more detail on our
journey to net zero at our Capital Markets Day later this year. Our approach to 
long-term sustainability has always placed nature and our communities at its core
and so we are pleased to add our support to the recently launched _Terra Carta_ 
charter putting nature, people and planet at the heart of creating value.

**Ongoing support for our community**

The challenges currently facing our customers and communities as a result of the
pandemic are never far from our thoughts. To date we have helped more than 120,000
customers who are struggling to pay their bills and we are providing a range of 
flexible schemes to support them as their circumstances change. More broadly, we
continue to support local projects, with £2.4 million now awarded to 384 community
organisations to help where it is needed most. At our half-year results we announced
our ambitious plans to support the Government Kickstart Scheme with 500 opportunities,
and we are pleased to announce that we welcomed our first cohort of Kickstarts into
the business in January 2021.

**Financial calendar**

Full-year results – Severn Trent’s annual results presentation will take place on
26 May 2021.

Capital Markets Day – Severn Trent will be hosting a Capital Market Markets Day 
on 24 September 2021.

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