- Water utility Severn Trent launched a £250 million equity raising to help it fund six new UK projects, while also reporting a 14% fall in annual profit owing to lower demand during Covid lockdowns.

The price of the share placing and subsequent retail offer would be determined after a bookbuild process, Severn Trent said.

Its pre-tax profit for the year through March fell to £267.2 million, down from £310.7 million year-on-year.

Revenue fell 0.9% to £1.83 billion and adjusted profit before interest and tax fell 17% to £472.8 million.

Severn Trent declared a full-year dividend of 101.58p per share, up 1.5% year-on-year.

The company said lower consumption during lockdowns had cost around £50 million, though UK regulations allowed it to cover the amount later.

'The last year has thrown up multiple challenges for us but it's clear everyone at Severn Trent has responded superbly to the new normal we find ourselves in,' chief executive Liv Garfield said.

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