Severn Trent nearly tripled its profits despite the FTSE 100 water company announcing it did not meet drinking water risk standards.
The company, which serves 4.7 million customers from Bristol and mid-Wales to the Humber, said it “will be fined this year” over a measure of water quality known as the Compliance Risk Index (CRI).
Water companies have come under increased scrutiny over pollution and water quality in recent years, with politicians accusing them of not investing enough in critical infrastructure despite impressive profits for shareholders. It has become.
Several other water companies are struggling with huge debts and are under severe financial strain. Thames Water, which serves London and the south-east of England, is negotiating a £3bn emergency funding package in a bid to raise further capital, while in the south of the capital, Southern Water is looking to borrow £4bn. I'm looking for it.
However, Severn Trent's financial position is stronger and it has reduced its debt service costs over six months. Severn's pre-tax profits rose to £192m in the six months to the end of September, almost triple the £71m in the same period last year.
Severn Trent said the failure related to its site in Strensham, Worcestershire. He added that “significant improvements” are expected from next year due to the “largest ultraviolet disinfection program in history”.
Severn said ultraviolet light is used to eliminate bacteria and viruses, but did not say what substance caused the problem. CRI incorporates measures for a wide range of pollutants, including heavy metals and toxic chemicals.
The company said it was in the midst of its biggest ever capital investment, with plans to spend up to £1.5bn. Returns to shareholders also increased by 4.2% to around £147m in the year to March.
Severn Trent chief executive Liv Garfield said: “We are proud of what we have delivered for our customers,” but added: “We know there is still work to do.” .
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Mr Garfield is one of several water company chief executives who have been criticized for taking high salaries even as the industry struggles to keep Britain's waterways clean. She received £3.2 million in 2024, despite the company being fined £2 million for spilling 260 million liters of sewage into the River Trent.
Severn stock rose 3.6% on Wednesday morning.
