Pennon Group plc (LON:PNN) saw its shares rise on Tuesday after the water and waste utility company posted a solid first half performance and said it is on track to meet its full-year expectations.
For the six months to September 30, the FTSE 250-listed group reported a 2.7% increase in its statutory pre-tax profit to £133.6mln, up from £129.8mln a year earlier, as revenue rose by 3.1% to £746.7mln, up from £723.9mln.
READ: Deutsche Bank pulls plug on Pennon shares, downgrading rating to ‘hold’ from ‘buy’
The firm said its revenue growth was attributable to continued strong performances by South West Water, thanks to increased customer demand, and by its UK recycling business Viridor due to the building of new energy recovery facilities.
The company added that it is on track to meet its full-year expectations, as well as its cost savings and synergy target of around £17mln per annum starting from 2019.
Chris Loughlin, Pennon’s chief executive commented: "Momentum for Pennon continues with a strong performance in the first half of 2018/19 across both water and waste.
“We are delivering on our promises to customers and communities and our investment across the Group is driving tangible and positive results.”
The firm is to pay an interim dividend of 12.84p per share, up 7.3% from the 11.97p interim payout last year.
In late morning trading, Pennon shares were 1.6% higher at 768.40p.