Proactive Investors - Severn Trent PLC (LON:SVT) has said it missed a compliance risk index (CRI) target this year as water companies face scrutiny over sewage pollution incidents.
In full year results on Wednesday Severn Trent, which supplies 4.6 million households, said: “While we were green on the vast majority of our water ODIs (outcome delivery incentives), we missed our target on CRI this year.”
This comes after diarrhoea-causing parasites have left dozens sick across Devon and Cornwall, where rival Pennon Group (LON:PNN) operates, following pollution incidents.
CRI is designed to show risks from treated water compliance failures in terms of supplies used by Ofwat's Drinking Water Inspectorate.
Despite the missed target, Severn Trent was still granted £55 million in rewards for investment over the year after a 63% increase in capital expenditure to £1.2 billion.
Pre-tax profit nudged up from £508.8 million to £511.8 million and soared almost 50% to £218.2 million on an adjusted basis.
Chief executive Liv Garfield also said the company was confident in retaining “the highest four star status from the Environment Agency for [a] fifth consecutive year”.
Severn Trent added 116.84p would be paid in dividends for the full year, against 106.82p in 2023.
Shares fell 1% in early trading.