Pennon’s underlying revenue rose 17.5% to £0.5bn over the first half, driven by a £77mn contribution from recently acquired SES Water. Excluding this contribution, revenue growth over the period was broadly flat as inflation-linked tariff increases were offset by lower customer demand.
Excluding SES, underlying operating profits fell 24.7% as efficiency savings were more than offset by the impact of inflation and elevated power costs.
Free cash outflows widened from £0.2bn to £0.3bn reflecting increased investment expenditure. Net debt increased from £3.8bn to £4.2bn
The revenue trends seen so far are expected to continue into the second half. As such full-year revenue is expected to be broadly flat excluding the impact of SES.
An interim dividend of 14.69p per share was announced, up 4.6%.
The shares rose 2.3% in early trading.
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Pennon key facts
All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
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