Severn Trent on target for full year

Utility Severn Trent this morning reiterated its full-year outlook, adding that trading in its regulated business had been largely as expected since October.

Total revenue is expected to be in line with market expectations, Severn Trent said, although operating costs are expected to rise year on year.

“We continue to forecast a bad debt level around 2.2 per cent of turnover for the full year, although we continue to monitor future developments closely, especially unemployment levels and changes to the UK benefits system,” the FTSE utility said in a statement.

As previously guided, the non-regulated business is expected to deliver mid single digit revenue growth for the full year.