LONDON (ShareCast) - (Sharecast News) - Severn Trent said the first quarter was in line with its expectations and predicted annual performance would be in line with guidance.
The FTSE 100 water company said it had not seen evidence to change its estimate for the financial effect of Covid-19. The negative impact in 2020-21 will be between £50m and £85m which can be recovered later under industry rules.

"We have been encouraged by cash collections broadly in line with the same period a year ago, but continue to anticipate Covid-19 bad debt increases in line with guidance previously given as government support schemes come to an end," Severn Trent said in a trading update.

Severn Trent said it made a strong start to the year operationally and was confident of a net positive result on incentives and penalties for delivery. The company said it had made a fast start to its investment programme and was on track to spend between £430m and £510m this year on infrastructure.

The company increased its final dividend in May for the year to the end of March despite coronavirus's impact on rising bad debts and joint venture losses.

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