RE: Resilient24 Nov 2020 17:30
Crocqman
Trouble is with Pennon, well Southwest water realy, is that within their area of operations have do not have a good reputation with the customers. Because of the coastline and the many sewerage works this entails having their sewerage charges are extremely high. Water costs aabout the same as the resst of the UK. A lot off their customer area is in very low paid deprived areas They are also, historically, a very authorative type of organisatioon, not very 'touchy feeley' and sweat their assets very hard with mmany pollutions and high leakage. I think the focus on the business is to improve this side of their public image, annd it rightly needs doing, but like you i think this shhould be the norm and not down to shareholders to fund.
They have also just taken on the responsabilties of the Isles of Scilly for waater supply and sewerage. Trhe infrastructure there is woeful, i can see lots of Viriddor monies going there to modernise this to prevent compliance issues and fines.
I also question the sense in giving shares away, they say they have tripled their ownership base - well that comes with an ongoing and now rising cost, for what is in effect a gimic. £20 is just two shares, hardly going to make much difference to the customers investment income but all a cosst on the bottom line.