Pennon Water reported a 90 per cent drop in profit this morning but hiked its dividend as management remained confident about the group’s outlook.
The South West Water owner’s half-year results, released this morning, show profits after tax coming in 90.3 per cent lower than the £18.5m recorded this time last year, at £1.8m. In June, the company’s full-year 2023 results showed a pre-tax loss of £8.5m from a profit of £127.7m the year before.
The FTSE 250 firm has also upped its capital expenditure forecast by £100m over the next two years as it aims to improve its operating performance amid intense regulatory scrutiny.
Group executive Susan Davy said the group had “improved operational resilience” by boosting investment 87 per cent in recent years.
Davy added: “I want to thank my colleagues in advance for what they are about to do, as we look ahead to 2030, creating 2,000 new jobs in the region and delivering a sustainable future for all.”
The dividend per share rose 8.3 per cent from 13p to 14p but adjusted earnings per share fell 54.4 per cent to 3.6p against the same period last year.
The company added it is targeting 135 GWh of renewable energy generation, through c.£145m announced to date to be invested in four acquired projects.
As of today, Pennon Water’s share price is down 21 per cent year-on-year.