SEVERN TRENT KEY NUMBERS

Latest Share Price (p) 1,899.00 Net Gearing (%) 84.62

Market Capitalisation (m) 4,450.57 Gross Gearing (%) 86.18

Share in issue (m) 239.60 Debt Ratio 84.93

P/E Ratio 10.20 Debt-to-Equity Ratio 0.90

Total dividends per share (p) 80.40 Assets / Equity Ratio 7.24

Dividend Yield (%) 4.33 Cash / Equity Ratio 11.30

Dividend cover (x) 1.00 Price to book value 4.08

NAV per share (p) 0.00 ROCE 0.06

Earning per share (p) 182.10 EPS Growth (%) 90.28

52 week high / low 2,011.00 / 1,626.00 DPS Growth (%) 6.00SEVERN TRENT RESULTS AT A GLANCE

Date Type Turnover £(M) Profit £(M) Basic EPS Currency

31 Mar 2014 Full Year 1,857 435 182.10 GBX

31 Mar 2013 Full Year 1,832 230 95.70 GBX

31 Mar 2012 Full Year 1,771 174 72.50 GBX

31 Mar 2011 Full Year 1,711 275 115.20 GBX

31 Mar 2010 Full Year 1,704 252 105.60 GBXSEVERN TRENT DIVIDEND HISTORY

Period Ex-date Pay-Date Net Dividend Currency Total for Year

H2 Dividend 18 Jun 2014 25 Jul 2014 48.24 GBX 80.40

H1 Dividend 04 Dec 2013 10 Jan 2014 32.16 GBX 0.00

H2 Dividend 19 Jun 2013 26 Jul 2013 45.51 GBX 75.85

H1 Dividend 05 Dec 2012 11 Jan 2013 30.34 GBX 0.00

Special Dividend 20 Jun 2012 27 Jul 2012 63.00 GBX 0.00

H1 Dividend 30 Nov 2011 13 Jan 2012 28.04 GBX 0.00

H2 Dividend 22 Jun 2011 29 Jul 2011 39.05 GBX 65.09

H1 Dividend 01 Dec 2010 14 Jan 2011 26.04 GBX 0.00

H2 Dividend 16 Jun 2010 30 Jul 2010 45.61 GBX 72.32

H1 Dividend 02 Dec 2009 15 Jan 2010 26.71 GBX 0.00SEVERN TRENT CONTACT DETAILS

Company Name n/a

Address n/a

Telephone n/a

Website n/aSEVERN TRENT ADVISORS

Company's Broker n/a

Company's Joint Broker n/a

NOMAD n/a

Registrar n/a

Auditors n/a

Solicitors n/a

SEVERN TRENT DIRECTORS

Appointed Director Position

02 Oct 2007 Dr Anthony John Ballance dir, Regulation & Competition

02 Oct 2007 Andrew Partick Smith dir, Water Services

07 Mar 2005 Anthony Paul Wray Group Chief Executive

06 Dec 2005 Michael James Edward McKeon Group Finance Director

10 May 2010 Andrew James Duff Non-Executive Chairman

01 Jan 2006 Dr Bernard Joseph Bulkin Non-Executive Director

01 Jan 2006 Richard Harding Davey Non-Executive Director

01 Jul 2009 Gordon Fryett Non-Executive Director

29 Feb 2008 Martin James Lamb Non-Executive Director

29 Feb 2008 Baroness Sheila Valerie Noakes Non-Executive DirectorSEVERN TRENT COMPANY FINANCIALS

Assets £(M) 2014 2013 2012 2011 2010

Reporting date 31 Mar 2014

31 Mar 2013

31 Mar 2012

31 Mar 2011

31 Mar 2010

Tangible assets 7,024 6,760 6,578 6,427 6,261

Intangible asssets and goodwill 95 141 161 203 209Investments and other non-current assets

78 135 138 193 209

Total non-current assets 7,196 7,036 6,876 6,823 6,678

Inventory / Work in progress 27 32 34 27 27

Trade and other receivables 513 506 479 479 473

Cash and Equivalents 123 404 295 315 228Other current assets and asset held for resale

29 42 30 4 3

Total of all ASSETS 7,889 8,019 7,715 7,649 7,408

Liabilities £(M) 2014 2013 2012 2011 2010

Short term liabilities 656 581 551 495 822

Long term liabilities 6,143 6,594 6,183 6,048 5,639

Other liabilites / pension etc 0 0 0 0 0

Total of all LIABILITIES 6,799 7,175 6,734 6,542 6,461

Net assets £(M) 2014 2013 2012 2011 2010

Net assets 1,090 844 981 1,106 947

Equity £(M) 2014 2013 2012 2011 2010

Share Capital 234 233 233 232 232

Minority Interests 13 11 8 6 6

Retained earnings 667 438 257 323 178

Share premium account 94 90 84 80 76

Other Equity 82 72 400 465 456

Total EQUITY 1,090 844 981 1,106 947

Cash Flow £(M) 2014 2013 2012 2011 2010

Cash from operating activities 757 659 654 721 654

Assets £(M) 2014 2013 2012 2011 2010

Cashflow before financing 289 272 309 331 166

Increase / Decrease in Cash -278 108 -20 88 -420

Income £(M) 2014 2013 2012 2011 2010

Turnover 1,857 1,832 1,771 1,711 1,704

Cost of sales 0 0 0 0 0

Gross Profit 0 0 0 0 0

Operating Profit 472 492 470 498 507

Pre-Tax profit 283 215 157 253 334

Profit / Loss for the year 435 230 174 275 252

THESE ARE THE THREE TECHNIQUES WHICH ARE USED TO KNOW ABOUT THE PRICE OF THE SHARES. THE FOLLOWING ARE WRITTEN BY ME ME ME “JUNAID ALI MALIK”. SAJID YOU HAVE TO USE THE THREE METHODS’ FORMULA AND FIND OUT THE SHARE PRICE OF THE SEVEN TRENT COMPNAY.

THIS IS THE WORK OF 300 RUPEES MAN.. YES!!!!

Don’t read them all, just use the formula and fulfill the c requirement below.. very simple

(c) Using the information from (a), (b) above, value the price of the share of your company as at 1 Sep 2014 using at least three alternative valuation techniques.

(c) Using the information from (a), (b) above, value the price of the share of your company as at 1 Sep 2014 using at least three alternative valuation techniques.

The valuation techniques are very crucial for every company to find out what the price will be of the share of the company. There are certain techniques that are used in this regard, but the main thing is that we need to understand them first of all and after their understanding; determination of the value of the price will be easy for the investors. Most of the investors, by the understanding of the techniques make a rational decision. The three alternative techniques are mentioned below with their impact over the price of the share of the Seven Trent PLC share price.

1. Net assets methods of valuation of shares

In this method, the total value of this company will be divided by total number of shares of the company. In this way, per share value will be there after the division. Following is the formula that shows how the calculation is done.

Value per Share= (Net Assets-Preference Share Capital)/Number of Equity Shares 

The main things in this technique are that of the accurate measurement of the value of the assets. The net realizable value is to be taken of the floating assets and the assets and the liabilities are given proper consideration at the time of calculation. The goodwill and the intangible assets are calculated properly by actually taking the total amount that can be gained from this intangible asset. There are some types of assets that should be completely ignored and they are fictitious assets like accumulated loss and the discount on the shares and the debenture. These are the certain things that should be considered before taking into consideration this method of calculation.

2. Yield Or Market Value Method Of Valuation Of Shares

The second one is the market value method in which the predicted or the expected rate of return on investment is shown by the curve. This rate of return is further subdivided into, rate of dividend and the rate of earning too. Due to these rates the shareholders determine how much they are going to receive on the investment they have done in purchasing the share of the company. There are two sorts of yield in it as mentioned earlier.

The first one is the dividend yield, under which the shares of the company are valued on the basis of the general or normal rate of return and the expected dividend is also given consideration. Here the following formula is applied.

Expected rate of dividend = (profit available for dividend/paid up equity share capital) X 100Value per share = (Expected rate of dividend/normal rate of return) X 100

The second on is the earning yield method in which the shares are valued on the basis of rate of interest and the expected amount of the earning. These are the factors which are used in the calculation process to find out the per share value of the company.

Value per Share = (Expected rate of earning/Normal rate of return) X Paid up value of equity shareExpected rate of earning = (Profit after tax/paid up value of equity share) X 100

3. Earning Capacity Method Of Valuation Of Shares

This is the method in which the management of the Seven Trent Company will find out the value of its share by observing the disposable profit of the company. The total profit is the gross profit, it becomes the net profit after the deduction of the variable expenses and after the net profit is gotten the reserves kept by the company and the taxes are deducted to find out the disposable income of the company. There are certain steps that are followed in receiving the share price. The very first one is the formation and knowledge of the total amount of profit available for the dividend, and then the capitalized value is found out. The formula for finding out this value is

Capitalized Value = (Profit available for equity dividend/Normal rate of return) X 100

The last step here is to find out the price of a share, which is gotten by the assistance of the following formula.

Value per share = Capitalized Value/Number of Shares