23rd Mar 2015 07:38
LONDON (Alliance News) - Pennon Group PLC on Monday said trading remains in line with expectations for its financial year to the end of March, with its South West Water business performing well and its Viridor waste management division making progress, leading the company to reiterate its dividend growth plans.
FTSE 250 utility Pennon said it is well placed to generate increasing operating cashflows over the 2015-2020 regulatory period and, as a result, intends to continue with its current dividend policy of year-on-year growth of 4% above UK retail prices index inflation over that period.
The company said South West Water is well positioned to deliver its 2015-2020 regulatory contract and will have the opportunity to generate returns for shareholders above the assumed returns on equity under the contract.
The Viridor waste management business has made good progress on its Energy Recovery Facility energy-from-waste business, with four facilities now on stream and a fifth to be added soon. Pennon expects full-year earnings before interest, taxation, depreciation and amortisation in the Viridor business to be ahead year-on-year.
Pennon will publish its results for the year to March 31 on May 20.
By Sam Unsted; [email protected]; @SamUAtAlliance
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