Coventry water company commits to no redundancies in latest trading report

Severn Trent Water

Coventry-headquartered water company Severn Trent Plc says the first quarter of the year has seen it trading “in line with our expectations.” 

However, the water company – which serves around eight million people across its region, still expects a £50 – £85 million negative impact to 2020/21 revenue, which Ofwat has allowed it to recover in 2022/23. The water company said it has been encouraged by cash collections broadly in line with the same period a year ago, but anticipates an increase in bad debts as a result of Covid-19 and government support schemes coming to an end.

The company says that it has a good underlying performance and is on track to invest between £430 million to £510 million in infrastructure this year. Last month it issued its first Sustainable Bond in Severn Trent Water, raising £300 million at a fixed rate of two per cent over 20 years. 

Severn Trent, which employs around 6,000 people, has also pledged to not make anyone redundant or furlough any of its staff as a result of COVID-19, and re-emphasised its commitment to helping young adults leaving education at this time, with 44 apprentices and 15 graduates starting in September.