You are here:

Water torture for Severn Trent

Created:
8 April 2008
Updated:
19 July 2008
Written by:
Claer Barrett

Severn Trent is to plead guilty to two charges brought by the Serious Fraud Office relating to the misreporting of water leakage data in 2001-2. The news comes on the same day that regulator Ofwat imposed a £35.8m fine for overcharging customers, equivalent to 3 per cent of 2006-7 turnover.

Advertising

Severn Trent had already cut customer bills by £10.6m, but had not made financial provisions for a fine. A further fine is expected from the SFO trial, which will probably be over relatively quickly owing to the guilty plea. And Ofwat could still impose further penalties.

IC VIEW

FairlyPriced

The failures occurred under a previous management team. The new team has apologised profusely and overhauled systems, but the threat to profits and general uncertainty mean the shares remain fairly priced at 1,450p.

Last IC view: Fairly priced, 1,495p, 27 Nov 2007.

  • Back to top

Products and Services from Barclays Stockbrokers.

The UK’s No.1 Stockbroker

Stocks and Shares

Contracts for Difference

Financial Spread Trading

Gilts and Bonds

Funds Market

FX

Education Centre

Trading Simulator

Advertorial Feature

Spread your risks with spread trading

With so many big moves in the world's financial markets, there have seldom been more opportunities around for spread traders. Isn't it time you joined them?

by Dominic Piccarda