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Pennon on track to deliver 'resilient' FY results

Tue 30 March 2021 08:02 | A A A

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(Sharecast News) - Water group Pennon said on Tuesday that it was on track to deliver "resilient financial results" in line with management expectations.

Pennon stated that during the second half of the trading year it had seen a net increase in demand and associated revenues, with increased household demand more than offsetting a decline in non-household demand driven by Covid-19 related restrictions.

Operational costs increased in line with the higher levels of demand but cash collections also remained "robust" throughout the year, with Pennon's expected credit loss assumptions, made at the outset of the Covid-19 pandemic, remaining largely intact.

The FTSE 250-listed firm highlighted that South West Water continued to deliver a "strong operational performance", achieving its committed target for supply interruptions two years ahead of plan. In the group's waste unit, it was also ahead of target for both internal and external sewer flooding.

As of 0845 GMT, Pennon shares were down 2.94% at 963.80p.

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