Pennon expects annual revenue to fall following bout of wet weather

Mon, 30th Mar 2020

Water utility Pennon said it expected to report a fall in annual revenue that was nevertheless in line with its expectations. In a trading update for the year through March, the company said revenue had 'reduced', driven by 'prolonged wet weather with rainfall 50% more than the levels seen last year and higher than long-term averages'. Its South West Water had outperformed in the K6 regulatory period between 2015 and 2020, with total expenditure and financing ending the five-year period in a net reward position. 'Operationally the business has performed well, ensuring minimal impact to customers at times of extreme wet and stormy weather,' Pennon said. With regards to Covid-19, the company said it had stepped up support for customers having trouble paying their bills. 'The group is well positioned with strong funding and liquidity to weather the current uncertainty as a result of Covid-19, but we continue to closely monitor the current situation as it develops,' Pennon said. The company had raised £840m of new or renewed finance in the 2020 financial year and had around £1.6bn of cash and committed facilities providing liquidity. 'On completion of the sale of Viridor, Pennon will continue to focus on its sector-leading water and wastewater businesses and will consider further growth opportunities that create value for customers, employees and shareholders,' Pennon said. 'A further update, alongside a new dividend policy will be provided at the full year results on 4 June 2020.' Story provided by StockMarketWire.com

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