(Alliance News) - Pennon Group PLC on Thursday reported a swing to loss for financial 2023 despite revenue rising.
The Exeter, England-based water utility said revenue in its financial year that ended March 31 rose 4.1% to GBP825.0 million from GBP792.3 million the year before.
However, it swung to a pretax loss of GBP8.5 million from a profit of GBP127.7 million. Pennon said this reflected near-term pressures on earnings from inflation driven power and financing costs.
Operating costs rose by 27% to GBP517.2 million from GBP408.4 million the year before.
Underlying earnings before interest, tax, depreciation and amortisation fell by 20% to GBP307.8 million from GBP383.9 million the year before due to an increase in power costs.
Chief Executive Susan Davy said: "This has been an extraordinary year for Pennon in which extreme weather patterns have tested our operational resilience. At the same time, inflationary pressures have proven our financial resilience. We have been able to respond to both, with agility and pace, focusing on the things that matter right now, and tackling the biggest challenges head on."
Pennon declared a 29.77 pence final dividend, lifting its full-year dividend by 11% to 42.73 pence from 38.53p a year prior, in line with its dividend policy. This was despite adjusted earnings per share falling to 7.3p in the recent year from 50.2p the year before.
Looking ahead, Pennon said it expects signs of inflation stabilisation before it recedes to more normal levels. It expects overall revenue to increase with the combined impact of inflation on its financial 2024 tariffs and ongoing "expected growth in our non-household retail business".
Shares were down 1.0% at 765.50 pence each on Thursday morning in London.
By Xindi Wei, Alliance News reporter
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Pennon (PNN)
