Water utility Severn Trent (LSE: SVT) saw a 9.7% increase in revenues to £1.2bn in the six months to September 30th, driven by growth in its regulated water and wastewater business. However, profit before investment and tax fell slightly to £255.1m as the company ramped up capital spending by 76.8% to £500m, its highest level ever.
The FTSE 100 group says 2023 will see a record investment of £1bn as part of a £12.9bn seven-year infrastructure improvement plan running to 2030. Severn Trent raised £1bn in October through a share issue to help fund the works. Net debt subsequently rose to £7.5bn.
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The company increased its interim dividend per share from 42.7p to 47.7p.
Chief Executive Liv Garfield said a “sector leading performance” over the past six months was driven by substantial investment across the Midlands region. The company will be allowed to increase customer bills by £89m next year after an industry regulator praised its improving service standards.
Severn Trent shares remained largely flat on the day. The stock is down 4.3% year over year.
