Severn Trent trading in line with expectations
Water company Severn Trent said its first-quarter performance has been in line with expectations and its full year guidance remains unchanged.
The group, which serves millions of customers across the Midlands and Mid Wales, said it had not seen evidence to change its estimate for the financial effect of Covid-19.
The negative impact in 2020-21 will be between £50 million and £85 million which can be recovered later under industry rules.
"We have been encouraged by cash collections broadly in line with the same period a year ago, but continue to anticipate Covid-19 bad debt increases in line with guidance previously given as government support schemes come to an end," Severn Trent said in a trading update.
The company said it made a strong start to the year operationally and was confident of a net positive result on incentives and penalties for delivery. The company said it had made a fast start to its investment programme and was on track to spend between £430 million and £510 million this year on infrastructure.
