Pennon Group PLC on Monday said it continues to deliver against its priorities, as it expects to report stable earnings in the second half of its financial year.
The Exeter, England-based water utility in a trading statement said its financial performance for its financial year ending on Monday remains in line with management expectations.
It expects earnings before interest, tax, depreciation and amortisation ‘broadly flat’ with the first half of its financial year, with lower customer demand and inflationary cost pressures offset by its ‘reshaping and restructuring programme’. It recorded Ebitda of £143.3 million at its interims in November.
Pennon also noted non-underlying costs for its reshaping and transformation programme, coupled with costs tied to the Brixham water supply incident of around £36 million.
In September, Pennon announced rising cases of sewage spills and a hit of about £16 million from a parasite contamination crisis in Devon.
Shares were down 2.5% at 441.40 pence on Monday morning in London. The wider FTSE 250 index was down 1.9%.
Pennon said it continues to deliver against its priorities and is well positioned to fund a record investment programme, following the acceptance of Ofwat’s Final Determination for operating subsidiaries South West Water and Sutton & East Surrey Water.
Pennon noted it has raised around £1.3 billion in financial 2025 through a mix of private placements, rights issue, public bonds and other opportunities.
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