logo-loader
viewPennon Group PLC

Pennon says will take a £16mln hit due to financial problems at collapsed infrastructure partner Interserve

The water provider said it "is seeking further clarification" on Interserve's situation, following its move into pre-pack administration earlier this month, meaning the provision could increase.

Water
The FTSE 250-listed firm said it had previously booked an £8mln provision of related to its exposure to Interserve

Pennon Group plc (LON:PNN) has revealed it will take a £16mln hit due to financial problems at its collapsed infrastructure partner Interserve.

In a trading update, the FTSE 250-listed firm said it had previously booked an £8mln provision of related to its exposure to Interserve, but this has now been doubled.

READ: Thames Water sees ‘Beast from the East’ and hot summer lead to a big fall in half-year profits

The company added that it "is seeking further clarification" on Interserve's situation, following its move into pre-pack administration earlier this month, meaning the provision could increase.

It said: “We will continue to pursue recovery of all amounts due from the operating subsidiary Interserve Construction Ltd and will take all the necessary legal and procedural steps to achieve this.”

Pennon noted that its South West Water business continues to perform strongly, with its return on retained earnings expected around 12%, an outperformance.

The company said revenue for the current year is guided to "broadly" offset operational costs.

It said its waste arm Viridor's energy recovery facilities at Glasgow, Beddington, and Dunbar are all also performing well, and it is confident its recycling business will meet full-year expectations.

The group will release its results for the year ending 31 March 2019 on 30 May.

Quick facts: Pennon Group PLC

Price: 1161.5 GBX

LSE:PNN
Market: LSE
Market Cap: £4.89 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Redx Pharma PLC's Lisa Anson updates on lead asset RXC004 and increased...

Redx Pharma PLC's (LON:REDX) Lisa Anson recaps on its lead product RXC004 which is in a Phase I clinical trial and is part of a potentially breakthrough group of cancer drugs called Porcupine inhibitors. Anson also details the recent investment by its majority shareholder Redmile which has...

11 hours, 37 minutes ago

2 min read