Severn Trent PLC (LON:SVT) said it had made good progress in its first half and that it was on track for its biggest year of capital spending in a decade, with more than £300mln invested in the first six months.
The blue-chip water firm on Wednesday posted a 4.3% rise in underlying pretax profit to £299.1mln in the six months to the end of September on turnover 3.6% higher at £881.5mln.
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The utilities group said it had seen a 70 basis point reduction in its effective interest rate during the period, driving its underlying earnings per share up 16.3% to 76.2p.
Severn Trent hiked the interim dividend by 7.9% to 37.35p.
The company said it increased water production during this year’s hot, dry summer to meet a 22% increase in customer demand.
It added that it had made excellent progress on its capital programme, with capex of £340mln in the first six months of the year and is on track for over £650mln by the end of the year.
“The performance culture we have embedded into the organisation continues to deliver strong performance for our customers, also providing a great platform as we head into AMP7 (the seventh Asset Management Period planned by the UK water industry),” Severn Trent’s CEO Liv Garfield said in a statement.
“As we plan and invest for the future, we are on track for our biggest year of capital spend in a decade, with more than £300mln invested in the first six months to improve performance for our customers today and for generations to come.”