Severn Trent targeting positive 2016 performance as costs drop

 
Caitlin Morrison
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Severn Trent has been making changes in order to cut costs across the business
Utility firm Severn Trent issued a reassuring trading update yesterday, and told investors it is on track to deliver a full year performance in line with expectations.

The update boosted shares by almost one per cent.

Operating costs are expected to be lower compared with last year, which the company attributed to organisational changes and supply chain efficiencies.

The company also revealed that the interest charge for the year is now expected to be lower year on year, and said it continues to make “very good progress on delivering efficiency savings across Severn Trent Water”.

Angelos Anastasiou at Whitman Howard said the group is “performing well and progressing steadily”, while analysts at Jefferies yesterday singled Severn Trent out as rising above its competition in the year to date.

“Overall the UK utilities have had an abysmal 2015 so far, with only Severn Trent in positive territory,” the broker said.

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