(Alliance News) - Pennon Group PLC on Tuesday reported a positive first half, with a strong rise in revenue ballooning profit and bringing the payout up with it.
The Exeter-based water utility booked a 29% rise in pretax profit in the six months to September 30, having increased to GBP79.9 million from GBP61.9 last year.
This was owed to revenue, which jumped 30% to GBP389.3 million from GBP299.2 million.
"We 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," Chief Executive Susan Davy said.
Pennon boasted a 60% year-on-year reduction in complaints in the half.
It also upped its dividend 4.9% to 11.70 pence per share from 11.15p.
Looking ahead, Pennon guided for annual revenue higher than last year's GBP644.6 million thanks to increased non-household demand and other services as Covid-19 recovery continues.
"The impact of inflation on the group's operating and finance costs is expected to be outweighed by the increase in regulatory capital value driving future years revenues, with inflation linkage and regulatory true ups providing long-term protection," Pennon said.
Pennon shares were up 0.2% to 1,228.00 pence each in London on Tuesday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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Pennon (PNN)
