Severn Trent its set to beat forecasts despite another two "unpredictable" winter months ahead

 
Courtney Goldsmith
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Severn Trent is set to beat expectations again
Severn Trent is set to beat expectations again (Source: Getty)

Severn Trent today said its net customer outcome delivery incentive (ODI) rewards for the full year are expected to beat previous guidance of £15m after strong operational performance in the last quarter.

That's after the company already upped its target from £10m in February 2016.

In a trading statement for the quarter to 31 December, the leading UK water and waste water firm said it expects to "at least" meet or exceed last year's ODI of £23.2m on a pre-tax basis at 2012/2013 prices.

However, the company, which supplies water across the UK's Midlands, still has two unpredictable winter months ahead.

Shares in the company were up less than one per cent to 2,268p in morning trading.

In May, Severn Trent cut its dividend by five per cent after full-year earnings fell 0.8 per cent on the previous year.

Earlier this month, the company experienced "unprecedented" attempts from angry activist locals to block its takeover of the Welsh company Dee Valley Water.

Liv Garfield, chief executive, said there is still much to do, but the company is making progress on its goals.

"We remain committed to delivering our £670m totex efficiency target in this regulatory period, and achieving the lowest possible cost of finance for our business. We will provide a further update on progress towards these goals at our full-year results."

Severn Trent Plc will announce its full-year results for the year ending 31 March on 23 May.

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