Pennon announce interim dividend per share up +6.4% to 13.66p

DividendMax Ltd.

Pennon announce interim dividend per share up +6.4% to 13.66p

For H1 2019/20, the Board has declared an interim dividend of 13.66p, an increase of 6.4%. The interim dividend will be paid on 3 April 2020 to shareholders on the register on 24 January 2020. Pennon offers shareholders the opportunity to invest their dividend in a Dividend Reinvestment Plan (DRIP).

Whilst delivering on our promises to customers and communities, Pennon's long established 10-year dividend policy delivers 4% year-on-year growth above RPI inflation to 2020 to shareholders. The dividend policy to 2020 has been supported by thier sustainable growth strategy and is underpinned by the highest return on regulated equity in the water sector over K6 (2015-20) and the growth in earnings delivered by Viridor's operations.

Othewr financial highlights include:

Group performance in line with management expectations

Underlying PBT up by 0.8% to £143.7 million, resulting from: 

Viridor EBITDA growth driven by strong performance across all activities, with ERF availability on track for >90% in 2019/20

Lower revenues and EBITDA at South West Water reflecting reduced customer demand compared to the elevated level during last year's hot dry summer, net of lower operating costs through continued focus on cost-savings

Profit before tax (excluding the impact of IFRS 16) up +22.7% to £163.9 million due to efficient financing providing a non-underlying gain of £18.0 million, and a non-underlying gain of £2.2 million from aspects of the finalisation of pension commitments relating to the exit from the Greater Manchester contract

Statutory earnings per share up +17.6% to 30.1p

Cash flow from operations reflecting robust operational performance, whilst significant capital investment across the Group continues

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