26th Nov 2019 08:23
(Alliance News) - Water and waste firm Pennon Group PLC hiked its interim dividend Tuesday after profit jumped on cost-cutting measures, despite revenue dipping.
For the six months ended September, pretax profit widened 22% to GBP163.1 million from GBP133.6 million the year prior. This was despite revenue falling 4.6% to GBP712.4 million from GBP746.7 million the year before.
Profit was helped by a reduction in costs during the period as well as gains related to its derivative holdings.
"Pennon has maintained its positive momentum through the first half of 2019/20, delivering robust performance across our water and waste businesses," Chief Executive Officer Chris Loughlin said. "We continue to deliver on our promises to customers, communities and shareholders as our strong operational performance and ongoing investments drive tangible, positive and sustainable results."
Pennon proposed a 13.66 pence per share interim dividend, up 6.4% from 12.84p the year before.
"Viridor continues to deliver sustainable growth in UK recycling and residual waste management," Loughlin added. "South West Water performance is underpinned by strong cost control."
Loughlin added that the strategic review launched in September was "ongoing", with conclusions due in 2020.
Shares in Pennon were 2.2% higher at 946.80 pence in London on Tuesday.
By Ahren Lester; [email protected]
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