London-listed water utility Pennon Group PLC (LON:PNN) started Tuesday trading on the front foot after its interim results statement highlighted “positive momentum” and a “robust performance”, whilst confirming an improved dividend.
Set at 13.66p the interim dividend increases by 6.4%.
Revenue for the six months, ended 30 September, was marked at £712.4mln which represents a 4.6% reduction from the comparative period of last year, though earnings (EBITDA) improved by 1% to £283.9mln (the adjusted EBITDA figure was £311.5mln, up 3.3.%).
Pre-tax profit was, meanwhile, reported at £163.1mln which reflects a 22.7% increase over the first half of 2018, and, the post-tax figure of £133.5mln equates to a 15.8% improvement.
Chief executive Chris Loughlin in a statement highlighted that the South West Water business remains “underpinned by strong cost control” and the Viridor waste water and recycling unit has continued to provide “sustainable growth”.
"Pennon has maintained its positive momentum through the first half of 2019/20, delivering robust performance across our water and waste businesses.
“We continue to deliver on our promises to customers, communities and shareholders as our strong operational performance and ongoing investments drive tangible, positive and sustainable results.
He added: “South West Water performance is underpinned by strong cost control.
“We have made an early start on our business plan for 2020-2025 after receiving fast-track status from the regulator for the second consecutive review, the only water company ever to achieve this.
“Our plan will see customer bills reduce further, with the cost of the average bill lower in 2025 than it is today.”
Pennon shares rose by 22p or 2.37%, changing hands at 948.49p.