Water company Severn Trent has beaten its leakage reduction target – the first time in three years. The company also beat operating efficiency targets according to its 2007/08 financial results published today.
Severn Trent's turnover was up 5% to £1,279m and profit before interest and tax (PBIT) for the full year up by almost 12% to £462.3m.
The company’s success in outperforming its leakage reduction target has come through improving measurement and detection, responding more quickly, allocating resources more effectively and better targeting the replacement of its network.
Severn Trent chief executive Tony Wray said, "Our financial success means that we are able to deliver further service improvements that our customers expect and deserve - for every £2 we make in profit, we are investing £3 into our network."
He continued, "This investment includes essential work in Tewkesbury, where we have worked to secure water supplies following last July’s floods; Kenilworth, where we have invested £18 million in modernising the town’s sewerage system; and Ashbourne in Derbyshire, where we have invested £12 million to prevent future sewer flooding."