Severn Trent Water has reported an increase in turnover of 2.2% year on year to £1,544.8 million, while underlying PBIT increased by 4.0% to £518.6 million, with the publication today of its financial results for 2013/14.

The utility said it had continued to make good progress in delivering its capital investment programme, with an 8% increase year on year in capital expenditure to £602.1 million (UK GAAP, net of grants and contributions), compared to £555.4 million in the prior year, increasing activity on trunk mains, cleansing sewers, investing more in leakage reduction and making improvements at sewage treatment works. To date Severn Trent has invested £120 million or 80% of the additional £150 million investment programme announced in May 2012 and remains on track to reach an RCV of around £8 billion by March 2015.

 On Ofwat's key performance indicators (KPIs), the firm said it had made good progress during the year on a number of KPIs, including sewer flooding with a reduction of 20%, supply interruptions reducing by 45% and serious pollution incidents down 41% - Severn Trent was one of only two companies to deliver a year on year reduction in serious pollutions, as recognised by the Environment Agency.

However, there is room for improvement in three areas which impact serviceability, namely sewer blockages, water quality at our water treatment works and supply interruptions over 12 hours, where performance was below Severn Trent’s own standards. As a result serviceability in water infrastructure and non-infrastructure, and sewage infrastructure has been assessed as marginal for this year.

The water company said it would continue to drive sewer blockages down, which saw a 13% year on year reduction, and had conducted a thorough end to end review of water treatment processes to improve performance, which will start to deliver benefits in the current year. Severn Trent has  included shortfalls in its current 2015-2020 business plan in recognition that it has not delivered the level of performance it had set.

In the non-regulated business, Severn Trent Services, there was a mixed performance. Operating Services grew year on year on the back of new contract wins. However performance in Products was described as disappointing, with customer project and delivery delays impacting both revenue and profits.

On AMP6, Severn Trent said it was continuing a constructive engagement with Ofwat on its 2015-2020 business plan and will submit a revised business plan on 27 June, with a draft determination expected on 29 August, and a final determination expected 12 December.