Pennon Group PLC has released a trading update for the year ending 31 March 2024. The financial performance for the full year 2023/24 is in line with management expectations. The company has made significant progress in various areas, including acquisitions, renewable energy generation, water and wastewater investment, and customer support.
The acquisition of SES Water is progressing through the Competition and Markets Authority (CMA) review as expected. Additionally, the company has acquired four renewable energy generation sites, with construction commencing at the Dunfermline solar site. Pennon Group has achieved record levels of water and wastewater investment, with expectations of approximately 850 million capex to 2025.
The company has also made strides in achieving strategic reservoir capacity, with 90% capacity achieved ahead of the 1 April 2024 target. Despite challenges such as increased rainfall impacting wastewater operational performance, Pennon Group is actively working on environmental improvements, with interventions underway to improve water quality at 49 of 151 beaches through their WaterFit program by 2025.
Pennon Group is focused on supporting its customers, having unlocked over 95 million in customer support to date. The company has launched innovative water efficiency campaigns and is well-positioned to deliver on its ambitious business plan for the future. Additionally, the acquisition of SES Water and progress towards Net Zero are key components of the company's growth strategy.
The company is also ensuring liquidity for the current regulatory period, having secured over 700 million through Pennon's Sustainable Financing Framework (SFF) since March 2023. This includes raising new debt through the SFF while maintaining a diverse portfolio of debt.
Overall, Pennon Group PLC's trading update reflects its commitment to strategic growth, environmental sustainability, and customer support, despite facing operational challenges.