Severn reported a 7.8% increase in its pre-tax profits to £ 563million in the 12 months ended March 31, helped by lower tax rates and lower interest repayments.
PLC () profits jumped nearly 8% last year, despite huge costs associated with “one of the hottest, driest summers” on record.
The FTSE 100-listed water company said last year’s record heat wave added an additional £ 22million to its cost base.
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However, in the 12 months ended March 31 (2018: £ 527m), its pre-tax profits rose 7.8% to £ 563m thanks to lower tax rates and lower interest repayments. Group revenue increased 4.2% to £ 1.77 billion (2018: £ 1.69 billion).
In keeping with its policy of increasing its dividend by Retail Price Index (RPI) inflation plus 4%, the company increased its final payout by 7.9% to 56.02p.
“It has been a year where our teams have really grown stronger, whether it is responding to customer needs in the face of one of the hottest and driest summers we have experienced or being named by Ofwat as the one of the best companies in the industry. when we received fast track status for our future projects, ”said Liv Garfield, CEO of the company.
Severn Trent shares edged up 0.7% to 1934p in early trades on Tuesday.