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Pennon to hike dividend payouts after good year

PENNON is to lift its dividend payment by four per cent a year for at least the next five years as the water and waste management company delivered a 14.2 per cent hike in profits last year.

The group’s chairman, Ken Harvey, said the board intends to raise its dividend each year until at least 2015 as its subsidiaries, Viridor and South West Water delivered strong results.

Profits across the company were significantly boosted by these subsidiaries, with profits at South West Water up by 8.7 per cent to £132.5m and Viridor up by 34.8 per cent to £55.4m.

Overall profits reached £189.1m, up from £159.4m the year before.

“The group remains well positioned to continue to deliver shareholder value and meet future challenges,” said Harvey.