Pennon Group PLC

Pennon Group PLC (LSE: PNN) is an FTSE 250-listed Environmental Infrastructure Company, which provides services related to waste management, water & wastewater, and water retail services. It operates through three businesses – Pennon Water Services Limited, Southwest Water Limited, and Viridor Limited.

Full Year Results (FY23 results, released on 01 June 2023)

• Improved Revenue: The company reported a marginal increase of 4.1% in the underlying revenue to GBP 825.0 mn in FY23 as compared to GBP 792.3 mn in FY22. The increase in revenue was majorly driven by the recent contract wins from Pennon Water Services along with the complete 12 months' contribution from Bristol Water.  
• Decline in Profitability: The group reported a statutory loss of GBP 8.5 mn in FY23 as compared to the statutory profit of GBP 127.7 mn in pcp, which is impacted by the underlying costs of GBP 25.3 mn in the reported period. The near-term pressure on the earnings could be witnessed from the higher financing costs and declining revenues in the waster business due to lower demand from the customers.
• Dividend: The board recommended a final dividend of GBX 29.77 per share for FY23. Along with the interim dividend of GBX 12.96 per share, the total dividend stood at GBX 42.73 per share for FY23.
• Outlook: The management stated the stabilized inflation outlook for FY24 and a cautious approach toward the volatile global economy. Further, the group expects the overall revenues to increase where the wholesale costs are estimated to be at elevated levels. The total power costs are expected to be close to GBP 103 mn for FY24.

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Pennon Group PLC (LSE: PNN) was trading at the closing market price at GBX 794.00 (as of 09 June 2023).

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 09 June 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.’

Disclaimer

References to ‘Kalkine’, ‘we’, ‘our’ and ‘us’ refer to Kalkine Limited.

This website is a service of Kalkine Limited. Kalkine Limited is a private limited company, incorporated in England and Wales with registration number 07903332. Kalkine Limited is authorised and regulated by the Financial Conduct Authority under reference number 579414.

The article has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. No advice or information, whether oral or written, obtained by you from Kalkine or through or from the service shall create any warranty not expressly stated. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation.

Kalkine does not offer financial advice based upon your personal financial situation or goals, and we shall NOT be held liable for any investment or trading losses you may incur by using the opinions expressed in our publications, market updates, news alerts and corporate profiles. Kalkine does not intend to exclude any liability which it is not permitted to exclude under applicable law or regulation. Kalkine’s non-personalised advice does not in any way endorse or recommend individuals, investment products or services for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a professional authorised financial planner and adviser. You should be aware that the value of any investment and the income from it can go down as well as up and you may not get back the amount invested.

Kalkine Media Limited, an affiliate of Kalkine Limited, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.