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Severn Trent PLC on Wednesday posted improved profit amid an advance in its top line, as it upgraded its adjusted earnings per share outlook for 2028. The Coventry-based water and sewerage utility reported £524 million in pretax profit for the financial year that ended March 31, up 64% from £320 million a year earlier. Driving the improved earnings was a 17% top-line gain as turnover grew to £2.83 billion from £2.43 billion. The company tied this improvement to higher revenue in its Regulated Water and Wastewater business, ‘mainly from tariff increases’, but with higher consumption during the drought period also contributing. Turnover for the Regulated Water and Wastewater business was £2.63 billion, up 17% from £2.25 billion. Capital investment was £1.95 billion, up 17% from £1.67 billion, and ahead of the £1.7 billion to £1.9 billion guided at its interim results back in November. The company proposed a final dividend of 75.62 pence per share, up 3.5% from 73.03p a year prior. This brought its total dividend for the financial year to 126.02p, up 3.5% from 121.71p. Shares in Severn Trent were trading 2.8% higher at 3,096.00 pence on Wednesday morning in London. Looking ahead, the utility provider upped its adjusted EPS outlook for 2028 to at least 250p from 224p. For financial 2026, it reported adjusted EPS of 184.4p, up 65% from 112.2p. ‘This has been another year of exceptional growth. We have invested £1.9 billion to deliver long-term benefits for our Severn Trent Water customers, increasing the scale of our investments by over 60% in two years. Our unique strength of internal capabilities coupled with strong supply chain relationships have enabled acceleration of investment delivery and growth in our water and wastewater infrastructure,’ said Chief Executive James Jesic. ‘Our investments are driving environmental improvements, including a 41% year-on-year reduction in average spills from storm overflows. There is more to do, and with the strength of our performance culture, I am excited by our ability to deliver for all stakeholders on the opportunities ahead.’ Copyright 2026 Alliance News Ltd. All Rights Reserved.
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