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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Severn Trent forecasts net operational outperformance for AMP8

(Sharecast News) - Severn Trent guided towards a net operational outperformance for over the back half of the decade. Ahead of its Capital Markets Day, the regulated water utility expressed confidence in its ability to deliver a third successive "sector-leading operational performance" for the next Asset Management Period covering the five years to March 2030.

The net operational outperformance for AMP8 now expected by Severn was of over £300m in nominal prices.

"We anticipate outperformance rewards to be concentrated towards the later stages of the AMP, therefore we are guiding to at least £25m in Outcome Delivery Incentives rewards for FY26.

Management also said that the company was employing Artificial Intelligence in order to drive efficiency gains.

"This gives us confidence we will deliver our programme within our totex allowance with the flexibility to absorb unexpected costs and reinvest in strategic initiatives that will further improve performance."

As of 1337 BST, shares of Severn Trent were falling by 4.18% to 2,407.0p.

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