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    PNN   GB00BNNTLN49

PENNON GROUP PLC

(PNN)
  Report
Delayed London Stock Exchange  -  11:35:05 2023-01-27 am EST
939.50 GBX   +0.64%
01/26PENNON GROUP PLC : Ex-dividend day for interim dividend
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Pennon half-year profit falls on cost pressure but raises dividend 11%

11/30/2022 | 05:24am EST

(Alliance News) - Pennon Group PLC on Wednesday said half-year profit fell sharply despite higher revenue, amid high cost inflation, but it still declared an increased dividend to shareholders.

The Exeter, England-based water services company said pretax profit in the six months that ended September 30 was GBP20.9 million, down 74% from GBP79.9 million a year prior, while revenue increased by 9.3% to GBP425.5 million from GBP389.3 million.

This fall in profit was because net finance costs doubled to GBP74.7 million from GBP37.0 million and operating expenses other than employment and raw materials increased by 36% to GBP185.9 million from GBP137.1 million. This included an increase of around GBP50.0 million in power costs.

Pennon declared an interim dividend of 12.96 pence per share, up 11% from 11.70p a year prior. Shares in Pennon were down 3.3% to 908.00p in London on Wednesday morning.

Pennon invested a record GBP142.5 million across its asset base, up 30% from GBP109.6 million during the half year period.

Pennon said it expects its underlying results for the full financial year to be weighted to its half-year performance above. Operating costs are expected to rise in its second half due to seasonal increases and inflation. The effect of this, alongside lower revenue, is expected to be partially offset by lower levels of financing costs via rebalancing some index-linked debt.

"In the first half of this year we've delivered record levels of investment to support a step change in environmental performance and build resilience for the longer term, having experienced the hottest, driest year since records began. Today we are announcing a further increase in investment in water resilience schemes of circa GBP45 million to repurpose ex-quarries and mines and introduce de-salination units to ensure our resilience to 2050 is in place now," said Chief Executive Susan Davy.

Pennon added its "robust" balance sheet allowed it to make those investments while still ensuring its pension scheme remains in surplus.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

Stocks mentioned in the article
ChangeLast1st jan.
GOLD 0.03% 1927.8 Delayed Quote.5.88%
PENNON GROUP PLC 0.64% 939.5 Delayed Quote.5.74%
S&P GSCI GOLD INDEX -0.06% 1132.74 Real-time Quote.6.60%
SILVER -0.06% 23.56 Delayed Quote.-0.19%
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Analyst Recommendations on PENNON GROUP PLC
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Financials
Sales 2023 799 M 989 M 989 M
Net income 2023 8,73 M 10,8 M 10,8 M
Net Debt 2023 2 991 M 3 703 M 3 703 M
P/E ratio 2023 235x
Yield 2023 4,51%
Capitalization 2 453 M 3 037 M 3 037 M
EV / Sales 2023 6,82x
EV / Sales 2024 6,43x
Nbr of Employees -
Free-Float 99,3%
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Technical analysis trends PENNON GROUP PLC
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TrendsBullishNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Last Close Price 939,50 GBX
Average target price 1 000,73 GBX
Spread / Average Target 6,52%
EPS Revisions
Managers and Directors
Susan Jane Davy Chief Executive Officer & Executive Director
Paul Michael Boote Chief Financial Officer & Director
Gillian Ann Rider Chairman
Neil Cooper Senior Independent Director
Iain Richard Evans Independent Non-Executive Director