(Alliance News) - Pennon Group PLC said on Tuesday it is considering potential investments or a payout to shareholders with the proceeds from the GBP3.7 billion sale of Viridor.
Shares were down 3.2% to 960.80 pence in London, underperforming the FTSE 250, which was up 0.5%.
The Exeter-based water utility said it is narrowing down a review of growth opportunities in the UK water sector, which presents "significant value potential". If none are available, Pennon will make a "substantial" payout to shareholders.
The company expects to make a decision by the time it releases 2021 financial year results on June 3. The sale of waste management firm Viridor to KKR & Co Inc was completed in July 2020.
Pennon said it is on track to deliver results in line with its expectations for the year ending March 31. Revenue increased in the second half as higher household demand offset lower business demand, although operational costs increased as well.
By Ivan Edwards; ivanedwards@alliancenews.com
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Pennon (PNN)