Severn Trent
Revenue £948m Dividend 33.96p
It comes as a surprise, a quarter of a century after the water industry was privatised, that there are still 500 jobs, or one in twelve at Severn Trent, that can go without putting frontline services at risk. The idea behind privatisation was that huge cost savings were available from slimming workforces.
As Ofwat nears its final determination next month, Severn Trent has suggested it can afford to push up water bills at significantly below the rate of inflation over the next five-year regulatory period.
The question for investors is whether this will put future dividends at risk. It was conspicuously not being answered by the company yesterday, although it must have done its modelling on the basis of