Pennon Group PLC said its financial performance for the year ending March 31 remains in line with expectations, despite its waste water operational performance being impacted by ‘challenging’ weather conditions.
In a trading update on Monday, the Exeter-based water utility company said due to annual rainfall in the South West increasing by 50% in the second half of its financial year, the ‘significantly increased wastewater flows’ have hurt its headline performance for wastewater pollutions and use of storm overflows.
However, the firm said: ‘We continue to make sustainable progress on delivering environmental improvements across the region, with 78 interventions underway to improve 49 of 151 beaches through our WaterFit programme by 2025.’
It also said it continues to trade in line with consensus.
In addition, Pennon said its entire programme of work to diversity its water resources portfolio in Devon has been completed, and also noted that 70% of its programme in Cornwall has been finished. ‘This has contributed to the early achievement of 90% storage for our strategic reservoirs in the region,’ it said.
Pennon also noted that the customary Competition and Markets Authority review process is now underway regarding its acquisition of Sutton & East Surrey Water, back in January for £380 million. It expects clearance at phase 1 in the summer.
Results for its financial year are expected to benefit from the SES water acquisition.
Shares in Pennon fell 1.9% to 657.50 pence each in London on Monday morning.
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