Pennon Share Discussion Threads

[sllab101] 19/6/2008 11:03

Morgan Stanley (SPU - news) has raised its stance on Pennon Group (LSE: PNN.L - news) to 'overweight' from 'equal-weight' and lifted its price target to 730p from 645p, saying the water group should provide a safe haven for investors.

The broker said Pennon offers low regulatory risk and good growth prospects. The group's waste business, Viridor should benefit from rising power prices and landfill legislation

[sllab101] 12/6/2008 13:04

Gateside,thank's for that.n

[gateside] 12/6/2008 12:47

Pennon flush



Created: 5 June 2008 Updated: 9 June 2008 Written by: Claer Barrett
Water and waste management company Pennon Group has reported an 18.4 per cent rise in operating profits. Following a busy year of acquisitions, operating profits in waste management division Viridor surged by 26 per cent to £56.8m, and its South West Water business posted a 15 per cent rise to £181m.
The water division is less affected by rising energy costs than its peers, having forward purchased 2008-09 power at just 1.6 per cent more than 2007-08 costs. Its average cost of debt is also the lowest in the sector at 4.5 per cent.

Viridor was the star performer, with revenues up nearly 24 per cent, the majority from organic growth rather than acquisitions. Landfill, power generation and recycling all performed strongly.

The Institution of Civil Engineers has predicted 'brown energy' (generated from methane gas in landfill) could account for as much as 15 per cent of the UK's power needs by 2020. Viridor's management think 5-6 per cent is more likely, but that's still a big jump on today's figure of 1.5 per cent. Viridor's gas output increased 13 per cent in the period, and profits rose 80 per cent at its expanded recycling business.

Now at 662p, Pennon is the most expensive of the water shares in terms of profits. However, the future potential for its waste management activities justifies the premium, and the shares offer long-term good value.

[m.t.glass] 09/6/2008 16:29

PNN is already among the dozen water stocks listed on the H2O thread


But if anyone can think of other UK water stocks that ought to be added, please mention them there.

[miata] 05/6/2008 08:23

Pennon Group Plc announced a 16.3 percent rise in underlying profits.

Pennon said pretax profits in the year to March 31 rose to 154.9 million
pounds from 133.2 million previously on a 16.9 pct increase in revenue to 875 million pounds.

The group increased the full year dividend by 6.8 pct to 19.81
pence per share.

Pennon said South West Water was on track to hit the targets in its 2005-10 regulatory contract and Viridor had enjoyed another year of strong growth in operating profits, particularly from landfill, power generation and recycling.

[miata] 03/6/2008 10:35

HSBC ups Pennon Group to overweight from neutral. Also raises Pennon target to 730p from 685p.

[sllab101] 30/11/2007 21:21

Biffa new CEO likely to have City connections, company denies resignation linked with private equity bid
By Oliver Adelman and Alamin Rahman in London

Published: November 30 2007 15:07 | Last updated: November 30 2007 15:07


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Biffa, the UK-listed waste disposal company, is likely to look for a figure with direct connections to the City to be its new chief executive, industry participants told mergermarket.

An industry source not involved in the deal said that it was too great a coincidence that Martin Bettington, the Biffa CEO who yesterday announced his impending retirement after 17 years at the company, announced his retirement just days after the company revealed that it had rejected a private equity takeover bid from a consortium led by Montagu Private Equity.

A UK-based infrastructure banker said that he is looking at Biffa with the intent of securing an advisory role to a potential bidder. He added that "it [Biffa] is definitely in play". He mentioned that Biffa is likely to attract most interest from financial sponsors and infrastructure funds due to its consistent cash flow history.

Meanwhile, the industry source emphasised that the company had denied any link between the two events, but noted that Bettington was widely seen as a "good operational guy," but that he did not have particularly good links with the City.

A spokesperson for Biffa said that the group had been approached by Montagu back in September, but that the decision for Bettington to step down had not been made until October.

The spokesperson said that the company was open as to the criteria for potential candidates: "we want the right man for the job." The industry source noted that, looking at other recent takeover deals in the waste disposal sector, an outcome in excess of 400p per share in any takeover bid for Biffa would be very unlikely. Further compounding the impression that the company is in play, Seymour Pierce sector analyst Kevin Lapwood, in a research note earlier this year, described Biffa as a "sitting duck" for a private equity takeover bid. A sector investor not involved with Biffa noted that a number of private equity groups had an active interest in the sector, and that Viridor, the waste arm of Pennon, had recently been cited as a potential target for private equity. The individual speculated that Terra Firma, the private equity vehicle of UK entrepreneur Guy Hands, might be interested in a bid for Biffa.

Biffa has a market cap of around GBP 1.12bn.

[sllab101] 28/11/2007 17:17

Pennon, which owns South West Water and reports first-half results on Thursday, is also perennially tipped as a target. It is the only water stock to have outperformed the market this year. Much of this is due to its waste business Viridor, which now accounts for 20pc of group trading profit, and is expected to benefit from increased spending on environmental projects.

Although Pennon's shares have spiked on the back of the Kelda bid to trade at 27pc above RAV, they are worth keeping an eye on, especially if bid values continue to be in the 30pc range. Moreover, Kelda's buyers have said they plan to expand the business, suggesting moves into the Viridor sector.

[sllab101] 23/11/2007 20:27

Water companies continued to enjoy selective support following yesterday's £3bn bid by a consortium of banks for Kelda, the old Yorkshire Water, up 1p at 1056p. The terms would be worth 1100p a share in cash and dividends to Kelda shareholders.

UBS says more bids can be expected in the water sector. Its top picks are Northumbrian, down ¾p at 329p, with a 385p target, and Severn Trent, 23p firmer at 1469p, with a target of 1680p. Lehman Brothers reckons Pennon, up 30½p at 662½p, is a better way to play the news as the market undervalues its waste business. It sees scope for 6% improvement in Northumbrian.

[randomwalker] 22/11/2007 15:39

Quite surprised the first target was Kelda, and not Pennon.
Still, the profitas are rolling in & there is a reasonable chance of £7 without a bid

[sllab101] 25/10/2007 09:26

Credit Suisse initiates coverage of Biffa with a neutral and 285p target and raises its target for Pennon to 692p from 679p

[praipus] 09/10/2007 10:54

NWG and PNN in Ecofin's Power and Water Investment Trust ECWO,ECWC,ECW havent moved yet and ECWC trade at a 13% discount to NAV so upward correction for ECWC pending IMHO.

[sllab101] 24/8/2007 09:14

In a note on the UK water sector the broker reiterates outperform and 679p target for Pennon, its top sector pick.

[sllab101] 07/8/2007 15:51

Utilities
Severn Trent has been raised from hold to buy and its target from 1350p to 1500p by Deutsche Bank in a sector review. It has lifted Northumbrian Water from 330p to 340p while repeating its buy rating, upped its target for Kelda from 800p to 890p and for Pennon from 500p to 560p

[hot_property] 03/8/2007 11:35

today needs close above 622 again ... weak vol today but nice vol yesterday

[hot_property] 02/8/2007 11:59

lets see what happens the pricing is relatively weak.. the chart has little direction other than day traders picking the stock up between the obvious support levels. A close for 2 days above 622 would be superb!

I was checking level 2 on this yesterday day because the volume is relatively thin the market maker has a regular field day...

the stock does not really respond to the FTSE it has a mind of its own

[sllab101] 02/8/2007 09:25

After UBS said that leveraged buy-out activity in the water sector is still likely because it requires a relatively small amount of deeply subordinated debts and carries less risk, buyers dived into Northumbrian Water, 13¼p higher at 317½p. Up 18½p at one stage, Pennon added 1p at 617½p on continuing talk of a French bid.

[sllab101] 02/8/2007 09:24

However, the investment bank argued: "We believe the sector implications from the current difficulty in credit markets in absorbing risky LBO debt are fairly limited because the amount of deeply subordinated debt in potential water LBO structures is relatively small."

Pennon Group, which has recently been touted as a target for a big European predator such as Aguas de Barcelona, crept up a penny to 617½p. Just before the market closed, Northumbrian Water - which is also frequently cited as a potential takeover candidate - was buoyed 13¼ to 317½p.

[sllab101] 02/8/2007 08:41

yashvij.Thats the trade on this one the book drys up then they all seem to come back in.Just have to pick the right point .

[yashvij] 02/8/2007 08:29

I can't see any buying activity though where all the buyers?

[sllab101] 01/8/2007 22:42

Viridor is where my bet is placed same deal as Biffa.Muck and money and all that stuff.

[yashvij] 01/8/2007 19:49

lets hope this rumour is true then...the market maker accumulated alot of the stock in the morning at the crazy price need to be careful of him since he is supressing price not to close above 622, if it closes above 622 hit this bt*ch hard! the spreadbetting companies that do not hedge will get cained.....

please let us know if you have any other interesting articles....

[sllab101] 01/8/2007 13:58

Market Report: Spread betters push Pennon higher on bid talk
By Nick Clark
Published: 31 July 2007
The age-old talk of a takeover bid for Pennon Group floated to the surface once more after the spread betters recorded huge volumes in the stock. Tongues were wagging after shares in the UK utility rose 28.5p following heavy early-morning trading. One market-maker said: "This is an old rumour. It has been around a long, long time and I'm not sure it's any more likely now." As the day wore on, investors became less enamoured with the speculation, and the stock closed up 12p at 607p.

The group's prize asset is its waste business, Viridor, according to one analyst. He added that should the rumoured private equity interest emerge, it was unlikely to target its water operation, South West Water.

Pennon's was hit particularly hard recently, possibly oversold during the market squeeze last week, the market maker said, adding: "It could also have been a bounce after a big seller cleared out."

[sllab101] 01/8/2007 12:43

Volume has been ticking up of late.Bid this week I think.