Pennon group updates its dividend policy

Pennon Group, the water utility and waste management company, announced full-year results

Trader 3

Pennon Group, the water utility and waste management company, announced full-year results.

"Revenue up marginally, from £632.6 million to £636.7 million. EBITDA is marginally lower at £365.3 million from £367.3 million, reflecting the mix of margin on retail and wholesale revenues, with South West Water's wholesale margin reducing as a result of lower customer consumption. "

"Profit before tax reduces by £8.7 million from £191.7 million to £183.0 million."

Pennon took a provision of £9 million for businesses and households failing to pay their bills during the Covid-19 crisis.

The group lifted its dividend 6.6% to 43.77p and said it will grow the payout at 2% above inflation over the next five year instead of 4% (company’s policy).

From a chartist’s point of view, the medium term outlook is bullish as long as prices are holding above the key support at 922p (March 16 bottom, overlap). However, the stock price faces a significant hurdle near 1210p (upper end of the short term consolidation range). The configuration is mixed. 

As long as 1210 is resistance, a price pullback can be expected towards 1088p. A break above 1210p would call for a new up leg towards 1280p.

Source: GAIN Capital, TradingView

More from Equities


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.