Down today (ex big div) but severn trent seem to have an almost perfect large inverse H&S beginning in mid Jul and completing last week. 680ish is going to be an interesting level either way.

Down around 9% which seems about where they were before takeover talk, may be further to fall so still watching.

Clearly -):

Beaufort Securities Buy 1,757.00 - - Reiterates

Citigroup Neutral 1,757.00 1,520.00 1,750.00 Reiterates

Barclays Capital Equal weight 1,757.00 - 1,765.00 Downgrades

Waste and water group Severn Trent slipped a further 11p at 1,754p after Barclays Capital downgraded the stock to equal-weight from overweight.

£17.50 seems a reasonable entry point, but could be wrong.

Divi out paying 45.51p. this week.

I've been filled @1,700p.

Nice one, can't see it going any lower today at least.

I hope so Stan - I must be honest - I forgot I'd put the limit in - well it was yesterday!

Interim Management Statement


The Board of Severn Trent Plc confirms that trading across the group has been in line with its expectations and prior guidance.

Regulated business
Customer prices in Severn Trent Water increased by 2.0% from 1 April 2013, reflecting November RPI of 3.0% and a k-factor of minus 1.0%. Consumption across our measured income base has declined year on year in the period, in line with our expectations.

Our forecasted bad debt level is maintained at around 2.2% of turnover for the full year, and we continue to monitor developments such as unemployment levels and changes to the UK benefits system closely.

Operating expenditure continues to be in line with the Board's expectations for the year and, on a like for like basis, in line with the level of the Final Determination. Operating costs are expected to rise year on year due to the impact of inflation and increases in quasi taxes, partially offset by efficiency improvements.

Expectations for net capital expenditure (UK GAAP after deducting grants and contributions) remain in the range £600 million to £620 million, including an estimated £15 million related to private drains and sewers. The level of net infrastructure renewals expenditure included in this range is anticipated to be £135 million to £145 million.

Non-regulated business
In Severn Trent Services we expect to see the benefits of our previous investments in growth areas. Growth will however be second half weighted as indicated by timing of deliveries from the Water Purification order book.

Group
The group interest charge is expected to be higher year on year due to higher net debt and with the adoption of revisions to IAS19 increasing the pension accounting interest charge. The year on year impact of this revision to IAS 19 is estimated at £13m.

The effective current tax rate for the group for 2013/14 is expected to remain between 23% and 25%.

Under our dividend policy of RPI+3% growth the dividend for 2013/14 is set to be 80.40 pence, representing growth of 6% year on year.

Other
In early May Severn Trent Plc received an approach from LongRiver Partners, a consortium led by Borealis Infrastructure Management, about a possible offer for the company. On June 11th LongRiver Partners confirmed that it did not intend to make an offer for Severn Trent Plc, and that it is bound by the restrictions under Rule 2.8 of the Takeover Code. In addressing this approach, the board of Severn Trent plc has incurred costs for advisory, legal and other services of approximately £19 million in aggregate.

Severn Trent Plc will announce its interim results for the period ending 30 September 2013 on 26 November 2013.

Morgan Stanley Underweight 1,549.50 1,546.00 1,185.00 1,185.00 Reiterates

L&G dip below 4% http://www.moneyam.com/action/news/showArticle?id=4671492

Interim's out tomorrow and to think that £22 was spoken of in the summer, under £18 now.

Half Yearly Report

Highlights

●Financial results in line to deliver full year expectations
●Below inflation bill increase for customers this year - Severn Trent remains lowest average combined bill in England and Wales
●Operating costs for adoption of PDaS, up to an estimated £41 million in total over the current regulatory period, being absorbed by Severn Trent Water
●Customer service, sewer flooding and supply interruptions all improving1. 8 Ofwat KPIs in upper quartile2 (vs. 4 in prior year)
●Additional £150 million investment programme continuing to deliver service improvements for the benefit of customers - £91 million invested to date
●Estimated RCV3 at September 2013 £7,511 million, on track to reach £8 billion by March 2015
●Bad debt stable and amongst lowest in industry, with a range of Severn Trent social tariffs to help customers
●Maintained underlying group PBIT despite rising power costs whilst delivering service improvements; interim dividend growth in line with policy
●Completed extensive stakeholder engagement programme as part of Business Plan for next regulatory period, AMP6 - on track to submit plan to Ofwat by 2 December
●New CEO announced - Liv Garfield to join Severn Trent in Spring 2014

Interim Management Statement

Severn Trent Plc Interim Management Statement
for the period 1 October 2013 to 13 February 2014

The Board of Severn Trent Plc confirms that the group's trading performance overall remains in line with its expectations and prior guidance.

Regulated business
Consumption across our measured income base is expected to be slightly higher year on year, given current volumes.

Our forecasted bad debt level is maintained at around 2.2% of turnover for the full year, and we continue to monitor developments such as unemployment levels and changes to the UK benefits system closely.

Operating expenditure continues to be in line with the Board's expectations for the year and, on a like for like basis, in line with the level of the Final Determination. Operating costs are expected to rise year on year due to the impact of inflation and power costs, partially offset by efficiency improvements. We currently anticipate no material financial impact from the present floods.

Net capital expenditure (UK GAAP after deducting grants and contributions) is expected to be towards the low end of the £600 million to £620 million range, including an estimated £15 million related to private drains and sewers. The level of net infrastructure renewals expenditure included in this range is anticipated to be £135 million to £145 million.

On 2 December 2013 Severn Trent Water submitted its business plan for 2015-2020 to Ofwat. On 19 December 2013, Ofwat published a revised price review process and timetable. Ofwat subsequently published guidance on risk and reward on 27 January 2014. We await further announcements from Ofwat on plan ratings, starting on March 10 2014.

Non-regulated business
Operating Services continues to perform well year on year, but in Products shipments have been below expectations in the last two months due to continuing customer project and delivery delays. Therefore for the full year Severn Trent Services underlying PBIT is now expected to be lower year on year.

Group
The group interest charge is expected to be higher year on year due to higher net debt and with the adoption of revisions to IAS19 increasing the pension accounting interest charge. The year on year impact of this revision to IAS19 is estimated at £13m.

The effective current tax rate for the group for 2013/14 is expected to be between 21% and 23%.

Under our dividend policy of RPI+3% growth the dividend for 2013/14 is set to be 80.40 pence, representing growth of 6% year on year.

Severn Trent Plc will announce its Preliminary results for the financial year ending 31 March 2014 on 29 May 2014.

Severn Trent Water - Regulatory Update

Final Results

Highlights

● In-line or below inflation bill increases for last four years - Severn Trent remains lowest average combined bill in England and Wales

● Increased investment - £602 million capital expenditure (+8% year on year) - continues to improve services for the benefit of customers

● Customer service, sewer flooding and supply interruptions all improving

○ Improved or stable performance on 10 out of 14 Ofwat KPIs year on year

○ Customer satisfaction (SIM score) improved for 3rd consecutive year

● Continued growth in RCV1,2 from £7,364 million to £7,618 million (+3.4%)

● Group underlying PBIT rose 4.3% year on year

○ Severn Trent Water underlying PBIT rose 4.0%

● Delivering on dividend policy - 6.0% growth year on year to 80.40 pence

● Constructive engagement with Ofwat on 2015-2020 business plan. Revised plan submission 27 June, draft determination expected 29 August, final determination expected 12 December

Deutsche Bank Buy 1,973.00 1,973.00 2,000.00 2,150.00 Reiterates