[03 DEC 99] SEVERN
TRENT WATER PRESS RELEASE
Severn Trent Strides Ahead With Non-Regulated Growth StrategyInterim Results for the six months
to 30 September 1999
Severn Trent today reported that the group's
strategy was on track with growth in the non-regulated businesses and a strengthened
management team in place to continue to drive the business forward.
FINANCIAL AND OPERATING HIGHLIGHTS
Group: Solid financial
performance
- Group turnover up 12.9% to £748.3 million
- Profit before interest and tax up to £226.0 million
(£224.3 million)
- Profit after tax £153.9 million (£153.1 million)
- Interim dividend 17.0p per share (up 4.2% on 1998/99
combined interims)
Non-regulated businesses:
Strong growth – profit before interest and tax up 45% to £24.0 million
Severn Trent Services:
Rapid development,
particularly in the US, with turnover up 46% to £148.5 million (£109 million) and profit
before interest and tax up 40% to £7.7 million (before 1998/99 bad debt provision,
reversed in second half)
- Developing leadership positions in four core market sectors;
now market leader in environmental laboratories and chlorine disinfection equipment in the
US
- Three new laboratory business acquisitions announced today
and further acquisitions planned
Biffa:
Overall turnover up 17% (14% excluding landfill tax)
- Continued growth in collection, special waste and Belgium
- Growth through organic expansion and targeted acquisitions
Severn Trent Water:
- No appeal to Competition Commission – now focussed on
meeting targets of the challenging regulatory review
- 1100 jobs to go in next 2 to 3 years
- Cost cuts will not compromise quality and safety standards
To view the full text of the Interim Results please go to
http://www.severn-trent.com
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