Southern Water Serv (Finance) Ltd Dividends and Financial Resilience (2128L)

TIDM31HI

RNS Number : 2128L

Southern Water Serv (Finance) Ltd

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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