Severn Trent on track to hit targets

Utilities giant Severn Trent broadly met forecasts in the first half and said it also expects to deliver full-year results in line with expectations.

The company announced that group turnover rose 3.6% to £917.7m in the six months to September 30th, from £886m the same period the year before. Charles Stanley had forecast a 4% increase in revenues to £920m.

Meanwhile, underlying profit before tax came rose from £155m to £157.5m, up 1.6% year-on-year and in line with Charles Stanley's £157m estimate.

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However, underlying profit before interest and tax (PBIT) was down 2.6% from £274.3m to £267.2m, reflecting planned increased investment in Severn Trent's networks and customers service in its water division.

Chief Executive Tony Wray said:"We have delivered again on our commitments to our stakeholders, we are on track with our £150 million additional investment programme announced in May, delivering operational improvements in the areas we targeted for this year, improving our service to customers and producing sustainable, progressive returns for shareholders."

The firm raised its interim dividend by 8.2% from 28.04p to 30.34p per share.