Wednesday, May 18, 2022
HomeBusinessPennon Sees Pre-tax Profit Hike After Swallowing Bristol Water

Pennon Sees Pre-tax Profit Hike After Swallowing Bristol Water

South West Water’s dad or mum agency has made a £90.4m pre-tax revenue for the previous six months – a 4.3%% hike on the identical interval in Covid-hit 2020 – partly because of its acquisition of Bristol Water.

Exeter-headquartered Pennon Group Plc noticed a revenue enhance on the £86.7m underlying revenue made within the first six months of the 2020/21 monetary 12 months and likewise noticed a 21.8% bounce in income to £389.3m for H12021/22.

It was helped by the June 2021 acquisition of Bristol Water, which contributed to £41.6m to underlying income. This was described as “forward of expectations” and likewise contributed £7.2m in revenue and capital funding of £12.7m.

Underlying income was additionally helped by the restoration of non-household demand, as companies opened up post-lockdown, and contract wins for Pennon Water Companies, the agency’s enterprise water division.

Pennon, which employs about 2,500 individuals principally within the South West, known as the efficiency “resilient” after the Covid pandemic and Government imposed price cuts took a bite out of earnings in 2020/21.

But it surely’s non-underlying pre-tax revenue of £79.9m, up by 29.1%, was hit by £96.9m of deferred tax for the longer term change in tax price, pitching the corporate right into a £22.2m loss after changes.

Nonetheless, Pennon mentioned outcomes have been in step with administration expectations and a “sector main” dividend progress of 4.9%. Pennon additionally identified that South West Water noticed a 60% discount in complaints, with payments decrease than a decade in the past, with £3.8m of affordability assist delivered to clients most in want.

Susan Davy, group chief government, mentioned: “We’re reporting resilient efficiency throughout the group, we proceed to construct momentum, driving sustainable progress, and making certain we’re nicely positioned to assist deal with local weather change.

“This, along with an evolving environmental technique will ship the step change all of us need to see for the well being of our area now and for generations to return.

Enterprise Reside’s South West Enterprise Reporter is William Telford. William has greater than a decade’s expertise reporting on the enterprise scene in Plymouth and the South West. He’s primarily based in Plymouth however covers the complete area.

To contact William: Electronic mail: [email protected] – Telephone: 01752 293116 – Mob: 07584 594052 – Twitter: @WTelfordHerald – LinkedIn: – Fb:

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“We proceed to pursue a relentless method to enhancing operational efficiency by means of modern options that drive effectivity, and in flip conserving buyer payments as little as attainable, at a time when clients want supporting most.

“I’d wish to recognise the pioneering spirit of Pennon’s circa 2,500 workers, who dwell in our areas and love what they do, and are on the coronary heart of our ambition in growing modern and sustainable options for purchasers, communities and the surroundings. Our sector main dividend coverage recognises the continuing loyalty of our shareholders, lots of whom are clients, charities, workers and pensioners within the UK, underpinned by the Group’s confidence in our ongoing progress technique, and constructing a sustainable future for all.”

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