Pennon Group increases its 2018 interim dividend by 7.9%

DividendMax Ltd.

Pennon Group increases its 2018 interim dividend by 7.9%

Pennon Group 2018 interim results

Underlying PBT up +2.3% following:

o higher Water revenues driven by customer demand

o final Bournemouth Water integration phase complete, £12 million synergies delivered in 18 months, with £27 million  cumulative expected to 2020

o growth at Viridor driven by strong performance from Energy Recovery Facilities (ERFs), availability at >90%6 for H1 2017/18

o continuing group efficiencies with £11 million p.a. of the c.£17 million p.a. expected from 2019 already secured

Strong operating cashflows, reflecting robust operational performance

Maintaining momentum with cumulative Return on Regulated Equity (RORE) at 11.8%7, unique WaterShare mechanism to share transparently the benefits of outperformance in period

Sustainable, low cost funding position underpinning continuing capital investment

Perpetual capital securities issuance delivering balance sheet flexibility

Statutory PBT up 26.8% to £129.8 million

Statutory earnings per share growth of +23.2% to 21.8p

Interim dividend per share +7.9% to 11.97p.

Companies mentioned