Pennon Share Discussion Threads

[pierre oreilly] 03/12/2024 09:21

With a regulated company the quality of service etc directly relates to the future profits the regulator allows. It's been hit by regulatory concerns which have obviously turned out less than expectations. One to hold imv.

[julianlau] 27/11/2024 09:44

Pennon Group's H1 2024/25 results met expectations but revealed challenges, including a £38.8m loss before tax, driven by costs for water quality interventions (£16m) and restructuring (£4m). South West Water saw lower revenues due to demand initiatives, while the recently acquired Sutton and East Surrey Group incurred anticipated losses. In contrast, profitable B2B operations and increased capital expenditure (+£65.5m YoY) supported operational improvements.

The group maintains a robust financial position with 68% gearing, £675m liquidity, a strong credit rating, and a solid 10.8% return on regulated equity for SWW. An interim dividend of 14.69p aligns with its CPIH +2% policy. While challenges remain, steady investment and a strong financial foundation signal long-term stability.

hxxps://wealthoracle.co.uk/detailed-result-full/PNN/1024

[bedford1976] 07/10/2024 11:43

Pennon has a whiff of that Hyder Water about it remember the Welsh utility that went pop under its debt. Cannot see a bright future here Labour hates utilities and will nationalise once they reach nil value shareholder equity.

[essentialinvestor] 27/9/2024 15:09

Another fat increase in net debt on the way, eh ?.

Something has got to give, dividends at current levels arguably look la la land.

[redartbmud] 26/9/2024 12:32

The biggest disaster of all was when they appointed Davy as CEO.
I said so before the ink was dry on her contract.

red

[chc15] 26/9/2024 10:30

Quite a dire update, could drift down here.

[netcurtains] 03/8/2024 07:34

Weirdly finished blue when more or less the entire financial world finished red.
I wonder if that means someone is buying?

[chc15] 25/7/2024 07:12

Ex div today, on a bad day is never great.

[netcurtains] 25/7/2024 07:04

...and splat back down again..
bummer

[netcurtains] 18/7/2024 06:57

demand outstrips supply for water and for the share certificates.

[netcurtains] 17/7/2024 07:37

Up slightly on a downer day?

[netcurtains] 11/7/2024 21:05

a pennon for your thoughts.

[r9505571] 11/7/2024 20:37

The UK water-sector regulator on Thursday put forward a proposal that will see household water bills increase on average by £19 annually, in addition to inflation, over the next five years.https://www.ajbell.co.uk/articles/latestnews/278154/ofwat-sets-out-water-price-hikes-pay-88-billion-spending#

[randomwalker] 11/7/2024 13:29

I am also taking the profit. That's my water bill paid......for 2 years ;-)

[cirlbunting1] 11/7/2024 13:13

Trimmed quite a bit given i went in quite heavy on the 2nd allocation. +15% gain. Will take that.

[chc15] 11/7/2024 10:45

True, and there are quite a few infrastructure, water funds globally now, they have to buy this.

[cirlbunting1] 11/7/2024 10:09

Hard to bet against water stocks esp how powerful the theme has become with esg asset managers. Both SVT & UU have done well in terms of total return.

[chc15] 11/7/2024 09:39

Nice, who would have thought labour be good for water cos. Always was good value here.

[netcurtains] 11/7/2024 07:11

By george...

[netcurtains] 11/7/2024 07:11

Oh I say....

[essentialinvestor] 03/7/2024 14:57

If you add the £1.4 bn special dividend on to the current market cap - it's still £700 million Below the net cash received for Virdor.

The £500 Million share buy back was arguably completely waisted.

The current dividend is unsustainable imv and net debt is rapidly heading for £4 bn.

To describe this as a sh1tshow is still being kind.

Add in inflation and it's significantly worse still.