Severn Trent profits down but no hosepipe ban
Utility provider Severn Trent announced profits were down but announced a special dividend and said it forecast no water restrictions for customers this year.
Utility provider Severn Trent announced profits were down but announced a special dividend and said it forecast no water restrictions for customers this year.
Profit before tax fell 38% to £156.7m in the year to the end of March, something the firm blamed on operational, infrastructure and employment costs.
It was also hit by losses on "financial instruments" of £67.7m.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Consumption from metered customers was lower year-on-year knocking £10.5m off turnover.
Total turnover was £1.77bn with earnings per share up 37% to 72.5p.
However, the company pushed its dividend up 7.7% to 70.1p as well as announcing a special dividend worth 63p a share to investors.
That gift to shareholders will cost the firm £150m.
As drought continues in some parts of the UK, Severn Trent said it had reduced leakage by 7% year-on-year to a record low level, and below Ofwat targets.
"Our strong balance sheet and investment grade credit rating enable us to share that benefit with our customers and investors by increasing our investment programme in our water and waste water networks by £150m, to improve further our services to customers, and return an additional £150m to our shareholders," Chief Executive Tony Wray.
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Jeremy Hunt: Tech and defence will make Britain great again - investors should stay or risk missing out
For investors shifting away from the UK, tech and defence may well be opportunities worth staying for, the former chancellor Jeremy Hunt says.
-
Can the House of Lords change the government’s mind on controversial inheritance tax reforms?
The House of Lords has launched an inquiry into inheritance tax changes on pensions and agricultural property relief - can the government’s plans be stopped?