London, July 2, 2026, 23:02 (BST)
- Severn Trent Plc (LON:SVT) gained 2.69% to 2,982p, topping the FTSE 100’s 1.67% rise, but shares are still 10.58% under the April 30 high.
- Based on the latest voting rights and Thursday’s close, Severn Trent’s equity is at about £9.0 billion, which is 0.58x its forecast FY26 regulated asset base.
- July 9 will see both the annual meeting and Q1 trading update for holders. Final dividend is set to be paid July 15.
Severn Trent Plc (LON:SVT) climbed 2.69% to 2,982 pence in London Thursday. Shares traded between 2,898p and 3,004p. The move tracked back Wednesday’s 1.76% loss, though the stock stayed below the FTSE 100’s two-day showing.
Severn Trent gained around 0.9% since Tuesday’s close, based on two daily closes. In the same stretch, the FTSE 100 is up about 1.5%. That’s the short-term move. The bigger story for investors is the asset-base value.
Severn Trent’s July 1 RNS counted 301,797,098 ordinary voting rights. At Thursday’s close of 2,982p, that gives the group an equity value near £9.0 billion. Severn Trent said its FY26 regulated asset base is £15.4 billion and sees FY26 average adjusted net debt at £9.237 billion. The table below uses those numbers, meant as a market read rather than a strict deal multiple.
| Valuation line | Calculation | Result |
|---|---|---|
| Equity value | 301.797 million shares times £29.82 | about £9.0 billion |
| Equity value over FY26 RAB | £9.0 billion divided by £15.4 billion | roughly 0.58x |
| Broad EV to FY26 RAB | sum of £9.0 billion and £9.237 billion divided by £15.4 billion | about 1.18x |
That matters as SVT’s market value is pegged to a regulated asset base that’s growing quickly, not just a yield. The company is guiding for FY27 investment of £2.2 billion to £2.5 billion, with RAB set to climb another 13% to £17.4 billion.
UK water stocks were mixed Thursday. Severn Trent and United Utilities Group PLC (LON:UU) traded near each other, but Pennon Group PLC (LON:PNN) stayed behind, still well below its 52-week high.
| Company | Thursday close | Day move | Below 52-week high |
|---|---|---|---|
| Severn Trent Plc (LON:SVT) | 2,982p | up 2.69% | 10.58% off high |
| United Utilities Group PLC (LON:UU) | 1,336p | gained 2.53% | trading 10.75% under |
| Pennon Group PLC (LON:PNN) | 474.8p | rose 1.98% | around 21.7% lower |
The relative gap matters for funds working the UK water basket. Severn Trent’s discount to its own high is now almost in line with United Utilities’ gap. Pennon still trades over 20% under its 52-week high.
Severn Trent’s May numbers lay out the groundwork for the trade. The company posted revenue of £2.831 billion, PBIT at £861 million, and adjusted EPS of 184.4p for the year ended March 31. Capital investment was up 16.7% at £1.954 billion.
| FY26 item | Result | Change |
|---|---|---|
| Revenue | £2.831 billion | up 16.6% |
| PBIT | £861 million | jumped 45.9% |
| Adjusted EPS | 184.4p | climbed 64.5% |
| Dividend per share | 126.02p | increased 3.5% |
| Capital investment | £1.954 billion | up 16.7% |
| RAB | £15.4 billion | rose 13% |
Chief Executive James Jesic described FY26 as “another year of exceptional growth,” noting, “We have invested £1.9 billion.” Jesic added, “There is more to do,” after the company posted a 41% year-on-year drop in average storm overflow spills and £127 million in bill support for nearly 330,000 households.
Severn Trent’s latest filings over the past two days were all standard updates. The July 1 RNS slate listed a Total Voting Rights notice and a Director/PDMR Shareholding report. The shareholding update flagged 224,703 conditional LTIP awards, with 90,000 of those for PDMRs. Vesting is set for July 2029, subject to criteria.
The sector’s policy overhang is still here. Reuters said in February that six water firms challenged Ofwat’s price controls. But Severn Trent, United Utilities and Pennon stayed out. Ofwat gave the go-ahead for average bills to go up 36% over five years, which is lower than the 44% companies wanted.
The Guardian ran an analysis Wednesday that said taking the whole sector into public ownership would be expensive and complicated, particularly for companies that aren’t in trouble. The article suggested targeted reform is more realistic.
Severn Trent’s next scheduled check-in comes July 9, with an AGM and Q1 trading update lined up. The final dividend is set for payout on July 15. Guidance for FY27 suggests investment will be higher than in FY26, even as net finance costs climbed 23.8% last year to £302 million.
