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(Alliance News) - Pennon Group PLC on Monday said it is in strong financial position to continue operations following the sale of Viridor.
The environmental infrastructure company said its performance in the financial year to the end of March was in line with management expectations.
Pennon said it is well positioned with strong funding and liquidity to weather the uncertainty caused by the Covid-19 health crisis.
By division, the company said South West Water revenue in financial 2020 was reduced due to prolonged wet weather, compared with rainfall experienced last year.
More positively, Pennon said operationally, South West Water has performed well, ensuring minimal impact to customers at times of extreme wet and stormy weather.
Turning to Viridor - its renewable energy and waste management unit - Pennon said it continues to perform well, focused on operational excellence and driving ongoing efficiency.
However, Pennon said it still expects to dispose of this unit by summer to a newly formed company established by funds advised by Kohlberg Kravis Roberts & Co LP for an enterprise value of GBP4.2 billion.
Following the sale of Viridor, Pennon will focus on its sector-leading water and wastewater businesses and will continue to pursue growth within the UK water industry, it said.
Looking forward, Pennon said it has GBP1.6 billion of cash and committed facilities providing liquidity, with its GBP300 million perpetual capital security approaching the first call date in May.
Pennon said it expects to report its annual results on June 4.
The stock was trading 2.5% higher in London on Monday at 1,099.50 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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