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The Markets
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Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Pharma & Biotech

Day ahead - Pennon Group turns on results tap

What's in store on Friday November 24? Pennon has results

A quiet Friday beckons but of course investors will still be mulling over the repercussions from the Autumn Statement.

A big topic as ever will be Brexit too and the forecasts for growth (or lack of it) that surrounded the statement have certainly given markets and traders food for thought.

On the corporate front, water group Pennon Group plc (LON:PNN) is due to report its interim results.

The share price has been heading south over recent months so traders will be keen to see where future growth may come from and what teh group's current strategy is against the curent backdrop.

Such utility firms are largely seen as defensive stocks, less dependent on the economic climate, that are non cyclical, and whose stock people want to own during uncertain times, which one could certainly suggest is the case now.

Shares at peer Severn Trent PLC (LON:SVT) have also fallen in recent weeks. But earlier this month the group cheered to the upside with acquisition news.

The company revealed it was set to buy smaller provider Dee Valley Group for around £78.5mln.

The firm says it was a "natural fit" as Dee operates in neighbouring areas in England and Wales and the purchase is expected to be earnings accretive from completion.

It comes after another offer from investment manager Ancala Fornia for £71.3mln fell through as the Dee Valley board had withdrawn its recommendation of that acquisition.

Under the offer Dee Valley, listed on the FTSE Fledgling index, will receive 1,705p in cash per share and a comparable cash offer for non-voting shares at 1,601p each.

Significant announcements expected -

Interims: Pennon Group plc (LON:PNN)

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