Analysts forecast an 8% rise in Severn Trent earnings
Severn Trent expects to flood the market with positive news when he releases full-year results, with analysts forecasting an 8% rise in earnings.
Severn Trent expects to flood the market with positive news when he releases full year results on Wednesday.
The blue-chip water company, led by Liv Garfield, already had plenty to celebrate this month after its share price hit an all-time high, as investors anticipate an economic downturn and choose dividend-paying stocks.
Analysts forecast an 8 per cent rise in profit for the fiscal year to £510m from £473m last year.
The gains come as the company has benefited from capital investment ‘super deduction’ tax exemption, one of Foreign Minister Rishi Sunak’s policies in the 2021 budget.
Severn Trent is also expected to see a 5 per cent rise in sales to just over £2bn. The dividend is expected to rise 5 percent to around 107 pence a share.
Analysts will also be keeping an eye on whether any customers are having problems with their bills, as the cost of living rises, and what assistance Severn Trent can offer.
It came under fire in March after it increased average bills by 7.1 percent. Conservative and Labor MPs said the increase was one of the largest in the country. Severn Trent provides water and treatment services to around 8 million people in the Midlands of England.
Investors will also be anticipating an update on the bathing water program.
Its goal is to transform 15 km of waterways, clean enough to attract bathers. It will invest £78m to improve 50km of rivers in Warwickshire and Shropshire, on the River Leam and the River Teme.