Southern Water Serv (Finance) Ltd Dividends and Financial Resilience (2128L)
April 28 2020 - 11:16AM
UK Regulatory
TIDM31HI
RNS Number : 2128L
Southern Water Serv (Finance) Ltd
28 April 2020
28 April 2020
SOUTHERN WATER SERVICES (FINANCE) LIMITED
DIVIDENDS AND FINANCIAL RESILIENCE
The board of Southern Water Services Limited (Southern Water)
has reviewed its AMP7 execution plan covering the period 2020 -
2025, in the light of the developing impact of COVID19. As a
regulated entity, Southern Water is afforded a level of operational
and financial resilience that targets continuity of service for our
customers through these challenging times.
In the short term, however, there will be some impact on our
financial resilience, the extent of which is currently uncertain as
the full impact of COVID19 continues to take effect. During this
period our focus is on maintaining our core water and wastewater
services, health and safety, and increasing the breadth of support
offered to our vulnerable customers. The shape of subsequent
recovery is unknown but we are working with our Regulators, Water
UK, our supply chain, and Government to ensure an effective
transition to the new normal for our customers, business, and the
wider economy.
The company's focus is on delivering our large investment
programme and ensuring those benefits accrue to our customers
efficiently over the AMP. This includes explicitly targeting, in
the execution plan, a gearing target of 70% net debt to RCV over
the AMP. Consistent with Southern Water's dividend policy, the
board has resolved that the company will not pay any dividends
until it is clear that to do so would not be detrimental to the
company's financial resilience.
Information contained in this announcement would have been
deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
For further information, please contact Steve Collins (Group
Treasurer) at:
Address: Southern House, Yeoman Road, Worthing, BN13 3NX, United Kingdom
Tel: 01903 272 056
Email: stevem.collins@southernwater.co.uk
DISCLAIMER - INTENDED ADDRESSEES
This announcement is a communication to the market. Nothing in
this announcement constitutes an offer of securities for sale in
the United States or any other jurisdiction. This announcement does
not constitute a prospectus or a prospectus equivalent
document.
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[END]
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END
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