The Pennon Group Board has recommended a final dividend of 30.33 pence per share for the year ended 31 March 2024. Together with the interim dividend of 14.04 pence per share paid on 5 April 2024 this gives a total dividend for the year of 44.37 pence. This represents an increase of 3.84% on 2022/23 which is per their policy (March 2024 CPIH + 2%) with a 1.96% reduction for the £2.4 million fine from the Environment Agency. Pennon offers shareholders the opportunity to invest their dividend in a Dividend Reinvestment Plan (DRIP).
Other financial highlights include:
Overall performance in line with their expectations
Underlying profitability improving - underlying operating profit (excl. SES water) up c.9%
Stabilising operating costs - cost inflation below revenue inflation, early benefits from transformation programme
RORE outperformance - continued cumulative outperformance, 7.6% for South West Water, 7.3% for South West Water group
Peak investment year as expected - step up in investment leads to expected cumulative year 4 and 5 capex of c.£930m
RCV growth of c.65% - K7 to date
Flexible funding strategy - c.£1.2bn new and renewed facilities raised since March 2023
Robust liquidity position - available liquidity in excess of £1bn
Targeting two public credit ratings by March 2025 - expect strong investment grade ratings
South West Water group RCV gearing - within 55-65% policy for K7
Ability to optimise balance sheet with K8 clarity - retained shareholder value of over £500m in South West Water
