Pennon Group PLC has released its full-year results for the period ending 31 March 2024. The Group's CEO, Susan Davy, emphasized the company's commitment to ensuring the safe water supply for the people and businesses in and around Brixham. While 85% of customers have had their normal service restored, efforts continue to ensure the local drinking water meets expected quality standards. The Group reported a robust performance for 2023/24, with good levels of liquidity and a record level of investment, support for customers, and job creation.
Financially, the Group saw an increase in underlying revenue, reaching £907.8m, and a statutory revenue of the same amount. The underlying operating profit stood at £166.3m, reflecting an 8.6% increase from the previous year. The Group's total dividend per share for 2023/24 was 44.37p, a 3.8% increase from the previous year. Additionally, the Group reported a significant increase in capital expenditure, reaching £642.4m, and a net debt of £3,479.9m at the end of March 2024.
Operationally, the Group highlighted achievements such as reaching 100% peak reservoir capacity, maintaining 100% bathing water quality for the third consecutive year, and committing £145m to renewable energy, providing 40% of the group's energy requirements. Looking ahead to 2024/25, the Group expects organic revenue growth driven by inflationary tariff increases and growth in non-household retail businesses, with operating costs in South West Water expected to be broadly flat net of inflation.
The Group's outlook also includes increased debt levels to support its capital investment profile, driving an overall increase in net finance costs, and an expected increase in Group RCV in line with the K7 business plan levels of investment, additional and accelerated investment, regulatory true-ups, and inflationary impacts.