Analyst Views: What did you make of Severn Trent’s results?

 
Suzie Neuwirth

ANGELOS ANASTASIOU | WHITMAN HOWARD
Severn Trent Water appears to be on track with no surprises, and Severn Trent Services is performing in line with the updated guidance in the company’s statement from 14 February. However, of greater interest remains the outcome of the price control review and potential takeover attractions.

JAMES BRAND | DEUTSCHE BANK
Severn Trent reported full-year numbers slightly ahead of expectations. [But] results from its services business were much worse than expected. Although the operational performance is slightly disappointing we continue to see Severn Trent’s shares as offering low risk, attractive returns.

DOMINIC NASH | MACQUARIE
These are the first set of results for new chief executive Garfield and they are a solid set to be presenting to analysts for the first time. Earnings in Severn Trent’s water division are ahead of our expectations, but earnings in the services unit are a bit of a disaster.

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