Pennon announce an interim dividend maintained at 1.2 pence per share

DividendMax Ltd.

Pennon announce an interim dividend maintained at 1.2 pence per share

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

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