Pennon is on track to deliver resilient financial results in line with management expectations.
Key Highlights
Disciplined management of the
Established a sustainable capital structure - c.
Responsible pension contributions, with
Continuing focused and disciplined review of potential value accretive growth opportunities; benchmarked against a return of capital to shareholders.
Investment, totex and financing plans all delivering
Resilient delivery of critical services across the Group during the pandemic, COVID-19 financial impact in line with expectations
Capital investment programme delivering improvements in the areas that matter most for customers whilst supporting the regional economy, with c.80% of Outcome Delivery Incentives (ODIs) on or ahead of target
Re-shaping the Group
The Group remains in a strong financial position with expected cash and committed facilities well in excess of
Pennon believes there is significant value potential from the reinvestment of the
The Group expects to provide clarity on this position by the time of its full year results on
Strong operational and financial performance
We continue to target improvements to support the delivery of our most stretching Outcome Delivery Incentives. Our targeted pollution incident reduction plan continues to build momentum, delivering significant improvements since its launch in
During the second half of 2020/21 we have seen a net increase in demand and associated revenues as increased household demand has more than offset a decline in non-household demand driven by COVID-19 related restrictions. Operational costs have increased in line with these higher levels of demand, and we have worked to maximise the safety and wellbeing of our customers and our employees, whilst delivering improvements to services.
Cash collections have remained robust throughout the year and our expected credit loss assumptions, made at the outset of the COVID-19 pandemic, remain largely intact.
Sustainable future
We continue to raise funds for
We are passionate about championing diversity and are pleased to have been recognised again within the top quartile in the Hampton-Alexander review for 2020. Alongside this, for the second year running, Pennon has been named in the Bloomberg Gender-Equality Index (GEI) - recognising our commitment to supporting gender equality through policy development, representation and transparency.
We are also pleased that Pennon has been recognised as the winner in
Contact:
Tel: +44 (0)1392 443 168
Cautionary statement in respect of forward-looking statements
Certain statements in this announcement are forward-looking statements relating to the Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, management. They are subject to a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of the Group to differ materially from any outcomes or results expressed or implied by such forward-looking statements. The Group's principal risks were described in the 2020 Pennon Group Annual Report which can be viewed online at http://annualreport.pennon-group.co.uk/. Such forward looking statements should therefore be construed in light of such risks, uncertainties and other factors and undue reliance should not be placed on them. They are made only as of the date of this announcement and no representation, assurance, guarantee or warranty is given in relation to them including as to their accuracy, completeness, or the basis on which they are made. No obligation is accepted to publicly revise or update these forward-looking statements or adjust them as a result of new information or for future events or developments, except to the extent legally required. Nothing in this Statement should be construed as a profit forecast.
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