As a regulated utility with good visibility on allowed returns, Severn Trent's (SVT) full-year results on 29 May shouldn't hold many surprises. City consensus is for adjusted pre-tax profit of £264m and EPS of 85.1p (from £266m and 91.3p in 2012-13). The full-year dividend is expected to rise 6 per cent to 80.4p, in line with the company's promise to grow dividends by 3 percentage points ahead of inflation.
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Investors will be looking for an update on the 2015-20 regulatory review, which will shape future returns and dividend policy. Severn Trent is re-submitting its business plan at the end of June and should receive its draft determination from the water regulator, Ofwat, in August.
