Severn Trent in bullish mood as it provides trading update to shareholders

Severn Trent was today bullish as it provided a trading update to shareholders, apparently free of the crisis that has inflicted the likes of Thames Water.

The company is responsible for putting the water in the taps of people across our region, with a network of reservoirs and complicated and often ageing infrastructure.

It, like other water companies, has been under increasing scrutiny over pollution, particularly along the River Severn where a very vocal campaign is being led by swimmers and anglers for the water to be cleaned up.

There is also the annual pressure to ensure supplies are maintained as our climate changes, an issue that Severn Trent says it is comfortable with this year as a dry early summer has moved to a cycle of sunshine and showers.

The water supplier for the Midlands and Wales says it is “well-positioned” to deal with the summer months, with water levels ahead of where they were a year ago.

Severn Trent Water said its reservoirs are 77 per cent full – 10 per cent higher than the same period a year ago.

It comes after fellow utility company South East Water was forced to impose a hosepipe ban on some of its customers in response to an unusually hot June.

Drier summers do not just mean less water in the firms’ reservoirs, they also increase the amount of water that customers want to use.

Severn Trent also said it is on track to meet its financial expectations for the year, as investors eye trouble at its peer, Thames Water.

“Financial performance remains on track and we expect to deliver in line with expectations,” it told shareholders.