3rd Jun 2025 08:38
(Alliance News) - Pennon Group PLC on Tuesday cut its annual dividend after posting a pretax loss despite a double-digit rise in revenue.
Pretax loss widened to GBP72.7 million in the year to March 31 from GBP9.1 million a year ago.
Profit was hit by a GBP21.0 million charge following the Brixham, Devon parasite outbreak and GBP16.6 million group restructuring charges.
On an underlying basis, Pennon reported a pretax loss of GBP35.1 million compared to a profit of GBP16.8 million a year ago.
Shares in the Exeter-based water utility fell 3.8% to 489.00 pence each in London on Tuesday morning.
The company said it expects to return to profitability in the current financial year through increased revenue and a reset of its cost base.
Pennon expects earnings before interest, tax, depreciation and amortisation to increase by two thirds in the current financial year.
In the financial year just ended, Pennon reported total Ebitda of GBP298.0 million down 4.6% from GBP312.4 million a year prior.
Underlying Ebitda fell to GBP335.6 million from GBP338.3 million.
Revenue rose 16% to GBP1.05 billion in the financial year from GBP907.8 million a year prior.
Capital expenditure edged up to GBP652.2 million from GBP649.5 million with finance costs jumping by 23% to GBP184.4 million from GBP150.2 million.
Pennon said operational efficiencies helped offset inflationary cost pressures, including investment in new technology.
The dividend was reduced by 14% to 31.57 pence from 36.67p.
By Jeremy Cutler, Alliance News reporter
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