The Severn Trent share price is down today after the company announced it would be increasing prices for customers in England and Wales. The water utility said that the average bill will increase by 4.7% from April 2019, which is higher than the rate of inflation. This follows a similar price hike last year, when bills went up by an average of 3%.
Severn Trent blamed the increases on “significant” investments in its network and rising costs.
This news will be unwelcome for customers, who have already seen their water bills go up significantly in recent years. In 2016, the government introduced a new pricing regime for water companies, which allowed them to increase prices in line with inflation +3%.
This led to an average bill increase of 8% that year, followed by another 5% rise in 2017. Since then, prices have been increasing more slowly, but they are still outpacing inflation.
The Severn Trent share price today is 551.5p, up 1.2% from its previous close of 545.5p. The water and wastewater utility company has a market capitalisation of £6.09 billion and pays an annual dividend of 55p per share.
Severn Trent is one of the UK’s leading water and wastewater companies, serving over eight million customers across the Midlands and central England.
The company has been in operation for over 150 years and is committed to providing high-quality water and wastewater services to its customers.
Severn Trent’s share price has been on a steady upward trend over the past year, rising from 467p in May 2019 to its current level of 551p. This represents a gain of 18% for shareholders who have held the stock over this period.
The company’s strong financial performance over the past year has been driven by higher revenues and profits, as well as increased dividends paid to shareholders. Severn Trent reported revenue growth of 3% for the year ended 31 March 2020, while Adjusted Operating Profit rose by 6%. This was driven by cost savings initiatives and lower interest costs, offsetting higher depreciation charges associated with recent investment in new infrastructure projects.
Credit: capital.com
Who is Severn Trent Water Owned By?
Severn Trent Water is a publicly owned water and wastewater utility company serving the Midlands of England. It is the fifth largest water and wastewater company in the United Kingdom, with over four million customers. The company is a constituent of the FTSE 100 Index.
The Severn Trent group was formed in 1973 from a merger between the previously state-owned North Western Electricity Board (which itself had been created in 1948) and the privately owned Birmingham Corporation. The new company took its name from two major rivers in its area of operations: the River Severn and the River Trent.
Is Severn Trent Water a Private Company?
Severn Trent Water is a private water and wastewater utility company serving the Midlands and parts of Wales in the United Kingdom. The company is headquartered in Coventry, England, and employs around 6,000 staff.
Severn Trent was formed in 1974 as a statutory corporation, following the merger of the Severn River Authority and the Trent River Authority.
In 1989, the company was privatised and is now listed on the London Stock Exchange.
The company supplies water to over 8 million people and wastewater services to over 7 million people. It has around 4,200 miles of water mains and 38,000 miles of sewerage network.
In 2019/20, it collected £1.6 billion in revenue.
In terms of environmental performance, Severn Trent has been ranked as one of the top 10 UK utilities for carbon disclosure four years in a row by CDP (formerly known as Carbon Disclosure Project). The company has also been recognised as one of Britain’s Most Admired Companies by Management Today magazine.
Severn Trent Share Price Forecast – SVT Severn Trent Share Price Projection and Analysis
Lloyds Share Price
Lloyd’s share price is a topic of great interest to many investors. The reason for this is that Lloyd’s is one of the largest banks in the world and its share price can have a big impact on the overall market. When investors are trying to decide whether or not to invest in a certain stock, they will often look at the company’s share price as one of the main indicators.
If a company’s share price is rising, it generally means that the company is doing well and that investors believe it has good prospects for the future. On the other hand, if a company’s share price is falling, it may be an indication that the company is in trouble and that investors are losing faith in its ability to perform well in the future. As such, Lloyd’s share price is something that all investors should keep an eye on.
Conclusion
Severn Trent is a water company that serves the Midlands and parts of Wales in the United Kingdom. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
The share price of Severn Trent today is 1,935p, which is up 5p or 0.3% from yesterday’s close of 1,930p.
This now values the company at £6.4 billion.
