Pennon Group (PNN)

Sector:

Utilities

Index:

FTSE 250

746.50p
   
  • Change Today:
      24.00p
  • 52 Week High: 971.00
  • 52 Week Low: 551.00
  • Currency: UK Pounds
  • Shares Issued: 261.35m
  • Volume: 594,012
  • Market Cap: £1,950.94m
  • RiskGrade: 123
  • Beta: 0.78

Higher costs and drought hit profits at Pennon

By Abigail Townsend

Date: Thursday 01 Jun 2023

LONDON (ShareCast) - (Sharecast News) - Pennon Group said on Thursday that it swung to a full-year loss as higher costs and the long hot summer weighed heavily.
The FTSE 250 firm said underlying revenues in the year to 31 March rose 4% to £825m. But operating costs jumped nearly 27% to £517m, and earnings before interest, tax, depreciation and amortisation fell 20% to £307.8m.

Underlying pre-tax profits tumbled 88% to £16.8m, while the pre-tax loss was £8.5m, compared to a pre-tax profit of £127.7m a year previously.

Pennon said: "During 2022/23, volatility in the global economy - reflecting the geopolitical situation and economic difficulties arising from the global pandemic - has continued.

"As expected, the impact of elevated inflation on power and interest costs has reduced our near-term earnings."

The second half was also hit by drought in the south west, it noted, which pushed up operating costs and capital expenditure.

Pennon also said "storm overflow use" - where raw sewage is discharged into the sea - had been reduced by 30% in 2022, to an average of 28 per asset. The company said it was on track to reduce the use of storm overflows by 50% by 2025.

Susan Davy, chief executive, said: "This has been an extraordinary year for Pennon, in which extreme weather patterns have tested our operational resilience. At the same time, inflationary pressures have proven our financial resilience.

"In a year in which the sector has been rightly challenged to clean up its act, we have delivered improvements in environmental performance."

Looking to the current year, Pennon expects overall revenues to increase with the combined impact of inflation on the 2023/24 tariffs and ongoing expected growth in the non-household retail business.

Power costs are forecast to remain broadly flat year on year.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Pennon Market Data

Currency UK Pounds
Share Price 746.50p
Change Today 24.00p
% Change 3.32 %
52 Week High 971.00
52 Week Low 551.00
Volume 594,012
Shares Issued 261.35m
Market Cap £1,950.94m
Beta 0.78
RiskGrade 123

Pennon Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
28.27% below the market average28.27% below the market average28.27% below the market average28.27% below the market average28.27% below the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average
Price Trend
32.74% below the market average32.74% below the market average32.74% below the market average32.74% below the market average32.74% below the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average
Income
30.33% above the market average30.33% above the market average30.33% above the market average30.33% above the market average30.33% above the market average
60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average60.00% above the sector average
Growth
89.02% below the market average89.02% below the market average89.02% below the market average89.02% below the market average89.02% below the market average
33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average33.33% below the sector average

What The Brokers Say

Strong Buy 2
Buy 3
Neutral 5
Sell 2
Strong Sell 0
Total 12
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Pennon Dividends

  Latest Previous
  Interim Final
Ex-Div 25-Jan-24 20-Jul-23
Paid 05-Apr-24 04-Sep-23
Amount 14.04p 29.77p

Trades for 06-Dec-2023

Time Volume / Share Price
16:45 14,698 @ 744.50p
16:44 688 @ 739.26p
16:37 25,000 @ 746.50p
16:36 2,257 @ 746.50p
16:36 1,528 @ 746.50p

Pennon Key Personnel

Chair Gill Rider
CEO Susan Davy
CFO Paul Boote

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