Severn Trent is reporting a strong start to the AMP8 investment period 2025-30 in its latest trading update for the period to 9 July 2025.
Financial performance for the year remains on track and the water company expects to perform in line with guidance, including delivering at least £25 million in ODI2 reward in the financial year 2025-2026.
Severn Trent anticipate the main contributors of its operational outperformance to be improvements in leakage, driven by increased proactive work to find and fix leaks and continued efforts to bring down storm overflow spills.
Over 2,000 storm overflow interventions have contributed to an average spills performance of around five for the first six months of 2025. This is a 65% reduction on the equivalent period in 2024, Severn Trent says this means the company is firmly on track to achieve its target to reduce average spills to below 18 this year.
In the first quarter of FYY2025-26 Severn Trent has invested around £360 million in its capital programme, up 19% year on year, and is are on track to deliver between £1.7 billion and £1.9 billion of capital expenditure in FY26.
The water company’s interim results for FY26 will be announced in November 2025.
With the UK government demanding a 50% reduction in storm overflow spills by 2029, the era of reactive management is over. Speaking in the House of Commons on 21 July 2025, then environment secretary Steve Reed said, “This Government will cut water companies’ sewage pollution in half by the end of the decade.”
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