30th May 2019 08:37
LONDON (Alliance News) - Pennon Group PLC on Thursday said revenue increased in its most recent year, with particularly strong growth from its Viridor waste unit and more modest growth from South West Water.
The "environmental infrastructure" company's revenue rose 6.5% to GBP1.48 billion in its financial year that ended March 31 from GBP1.39 billion the year before.
Revenue from the Viridor recycling, resource, and waste management business was up 8.5% to GBP852.7 million from GBP785.7 million. This was due to the build-out of its energy recovery facilities and IFRIC 12 construction revenue.
South West Water revenue was also up, 1.7% ahead of last year at GBP581.0 million from GBP571.3 million. This was the result of a 1.4% increase in customer demand due to hot and dry weather last summer in the UK, as well as net tariff increases totalling 1.0% and more infrastructure connections.
Pretax profit, however, was relatively flat for the year, dropping 1.0% to GBP260.3 million from GBP262.9 million. This was the result of a GBP19.9 million non-underlying items charge, reversing a GBP4.1 million credit the year before.
Pennon raised its dividend by 6.4% to 41.06 pence from 38.59p the year before.
Looking ahead, the company unveiled plans for a new plastics processing facility in Avonmouth, near Bristol.
"Today we are announcing the first part of Viridor's next growth phase with significant investment in a new, state of the art plastics processing facility. The facility will be powered by low carbon energy from our Energy Recovery Facility in Avonmouth, adding much-needed recycling capabilities to the UK market," said Pennon Chief Executive Chris Loughlin.
Shares in Pennon were up 0.1% at 734.80 pence on Thursday morning.
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