Water and waste management outfit Pennon Group plc (LON:PNN) has hiked its interim dividend by 6% to 11.09p from 10.46p.
Profit before tax in the six months to the end of September rose 19.9% to £128.1mln from £106.8mln the year before on revenue that eased to £685.5mln from £689.1mln.
The company said its waste management business, Viridor, was on track to contribute the targeted £100mln or so of underlying earnings (EBITDA) from its energy recovery facility (ERF) portfolio in the current financial year.
“We are continuing to invest for growth. Following a review, we have taken the decision to commit to a £252 million ERF at Avonmouth, expanding our portfolio to twelve plants. This is a significant investment in the UK's environmental infrastructure and will add to the already expected significant increase in EBITDA from our ERF portfolio once all facilities are fully operational,” said Chris Loughlin, Pennon’s chief executive.
Capital investment in the first half of the financial year rose to £183.3mln from £165.9mln the year before.
Net debt at the end of September had risen 3.3% to £2.57bn from £2.48bn six months earlier.