South West Water鈥檚 parent firm has made a 拢90.4m pre-tax profit for the past six months - a 4.3%% hike on the same period in Covid-hit 2020 - partly thanks to its acquisition of Bristol Water.
Exeter-headquartered Pennon Group Plc saw a profit increase on the 拢86.7m underlying profit made in the first six months of the 2020/21 financial year and also saw a 21.8% jump in revenue to 拢389.3m for H12021/22.
It was helped by the June 2021 acquisition of Bristol Water, which contributed to 拢41.6m to underlying revenue. This was described as 鈥渁head of expectations鈥 and also contributed 拢7.2m in profit and capital investment of 拢12.7m.
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Underlying revenue was also helped by the recovery of non-household demand, as businesses opened up post-lockdown, and contract wins for Pennon Water Services, the firm鈥檚 business water division.
Pennon, which employs about 2,500 people mostly in the South West, called the performance 鈥渞esilient鈥 after the Covid pandemic and Government imposed price cuts took a bite out of earnings in 2020/21.
But it鈥檚 non-underlying pre-tax profit of 拢79.9m, up by 29.1%, was hit by 拢96.9m of deferred tax for the future change in tax rate, pitching the company into a 拢22.2m loss after adjustments.
Nevertheless, Pennon said results were in line with management expectations and a 鈥渟ector leading鈥 dividend growth of 4.9%. Pennon also pointed out that South West Water saw a 60% reduction in complaints, with bills lower than a decade ago, with 拢3.8m of affordability support delivered to customers most in need.
Susan Davy, group chief executive, said: 鈥淲e are reporting resilient performance across the group, we continue to build momentum, driving sustainable growth, and ensuring we are well positioned to help tackle climate change.
鈥淭his, together with an evolving environmental strategy will deliver the step change we all want to see for the health of our region now and for generations to come.
How to contact William Telford and Business Live
Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
To contact William: Email: william.telford@reachplc.com - Phone: 01752 293116 - Mob: 07584 594052 - Twitter: - LinkedIn: - Facebook:
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鈥淲e continue to pursue a relentless approach to improving operational performance through innovative solutions that drive efficiency, and in turn keeping customer bills as low as possible, at a time when customers need supporting most.
鈥淚'd like to recognise the pioneering spirit of Pennon's circa 2,500 employees, who live in our regions and love what they do, and are at the heart of our ambition in developing innovative and sustainable solutions for customers, communities and the environment. Our sector leading dividend policy recognises the ongoing loyalty of our shareholders, many of whom are customers, charities, employees and pensioners in the 海角视频, underpinned by the Group's confidence in our ongoing growth strategy, and building a sustainable future for all.鈥
