Investors
Divisions of Severn Trent Group
Severn Trent Group's activities are split into three large business areas.
- Regulated Water and Waste Water
- Business Services
- Corporate and other
Changes to our structure
In 2018, we made some presentational changes to our segmental structure, expanding our Business Services division.
We have aligned our Bioresources activities commercially as a result of the sludge trading market opening up on 1 April 2020. The treatment of sludge remains a regulated activity, but the way it can be traded changes at that time, and that will provide new opportunities for the business.
Historically, the property element of our business was split between our regulated and non-regulated business to reflect the profit-sharing mechanism that governs the sale of inherited assets.
We created a Property Development team to deal with the additional activity generated as part of our strategy to generate £100m property profit over the course of ten years.
Old
Current
UK Operating Services provides contract services to municipal and industrial clients, and the UK Ministry of Defence, for the design, build and operation of water and waste water treatment facilities and networks. We also provide retail services to UK businesses.
Severn Trent Green Power, our renewables business generating energy across solar, wind, and food waste assets.
Along with the energy generated in Bioresources, Severn Trent Green Power helps us to self-generate over 50% of our energy needs — a key contributor to our commitment to obtain 100% of our energy needs from renewable sources by 2030.
There are also potential growth opportunities in food waste through government consultation on mandated kerbside collection in the UK.
Our Bioresources business generates two products: energy (in the form of biomethane) and a fertiliser substitute from the waste produced in cleaning water before it is returned to the water cycle.
Launched in April 2018, the new standalone Bioresources business combined the Sludge Treatment capabilities of our regulated business with the energy-generating assets which used to sit within Renewable Energy – creating the single business unit.
We’re pushing the frontier in this area, breaking down the process and using our competitive advantages to widen the gap between us and our competitors.
In 2017, we identified several redundant sites that could be better used for social housing.
By developing and selling this land, we will bring in another £100m in revenue by 2027.
This revenue will help both customers and investors through the property sales customer-sharing profit mechanism.
This area contains all our corporate overheads, along with some small businesses which do not roll up through Severn Trent Water.
