Severn Trent will be hoping to flood the market with positive news when it publishes full-year results on Wednesday.
The blue-chip water firm, run by Liv Garfield, already had much to cheer this month after its share price hit an all-time high, as investors anticipate an economic downturn and pick stocks that pay a dividend.
Analysts have forecast an 8 per cent increase in profit for the fiscal year to £510m against last year’s £473m.
The profits come as the company has benefited from the capital investment ‘super deduction’ tax break, one of Chancellor Rishi Sunak’s policies in the 2021 Budget.
Severn Trent is also expected to see a 5 per cent surge in sales to just over £2billion. The dividend is expected to climb 5 per cent to around 107p a share.
Analysts will also be keeping an eye on whether any customers are struggling with their bills, as the cost of living rises, and what assistance Severn Trent is able to offer.
It came under fire in March after it increased average bills by 7.1 per cent. Conservative and Labour MPs said the rise was one of the biggest in the country. Severn Trent provides water and treatment services to around 8m people across the Midlands of England.
Investors will also be anticipating an update on the bathing water programme.
It aims to transform 15km of waterways, clean enough to attract swimmers. It will invest £78m to improve 50km of rivers in Warwickshire and Shropshire – on the River Leam and River Teme.
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