Over 40 years’ heritage
185,800 clients worldwide
Over 15,000 markets

Severn Trent to report on Thursday

Severn Trent will report its full-year results for 2013 on Thursday. The consensus is for revenue of £1.86 billion and operating profits of £514 million.

The UK water company is trading at 1898, up 11% year-to-date, and will reveal its full-year results on Thursday. Liv Garfield, who was a senior executive at BT, took over as chief executive officer in the spring of this year. The company has previously stated it would increase its dividend by 6% in 2013-2014, but some traders are sceptical that Ms Garfield will fulfil the company’s promise.

Last week, Goldman Sachs reiterated its buy rating for the company; the US investment bank has a price target of 2122 for the stock.

Excluding the takeover speculation in May 2013, the stock has spent most of the past 18 months within the 1600-1800 range. The shares managed to break out of the trend to the upside last week, but profit-taking has sent it back below the 1900 level.

If the figure impress traders we could retake the 1945 level, on the downside we could move to the recent low of 1760.

Severn Trent chart

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.