Pennon Group Results

[idpickering]

· The Group has performed well in 2017/18, in line with management expectations

· Underlying PBT up +3.5% driven by:

o South West Water:

− Higher revenues reflecting net tariff increases and customer demand

− Sector-leading cost savings on capital and operational expenditure (TOTEX)

o Viridor:

− ERF earnings growth, availability of operational ERFs

o Pennon Group:

− efficiencies of c.£13 million p.a. secured, c.£17 million p.a. expected from 2019

· Growing cash inflow from operations reflecting robust operational performance, while significant investment continues

· Sustainable, effective funding position underpinning continuing capital investment

o Hybrid refinanced, Perpetual Capital Securities issue delivering balance sheet flexibility

o Capital investment peaked in 2017/18 reflecting spending on ERFs

· Statutory earnings per share growth of +20.6% to 48.0p

· 10 year sector-leading dividend policy to 2020, +4% growth above RPI Inflation every year

o 2017/18 dividend per share +7.3% to 38.59p

· Positive outlook across water and waste - Pennon delivering sustainable long-term returns

Ex div 5 Jul 18, paid 4 Sep 18.

https://www.investegate.co.uk/pennon-gr ... 00042669P/

[monabri]

In regard to the final dividend specifically:-

"For 2017/18, the Board has recommended a final dividend of 26.62p, up 7.0%, subject to shareholder approval at the Annual General Meeting on 5 July 2018. The final dividend will be paid on 4 September 2018 to shareholders on the register on 6 July 2018. Together with the interim dividend of 11.97p, this will result in a total dividend for the year of 38.59p, an increase of 7.3%"