South West Water owner sees shares rise as investors soak up positive update
Share in South West Water owner Pennon Group rose this morning after it confirmed trading was in line with expectations.
The water company said lower use by shuttered businesses has been offset by a rise in use by households.
Therefore, the impact of the coronavirus pandemic will wipe only about £10m from Pennon Group’s previously expected revenue.
Pennon said that Ofwat’s regulatory model would allow it to claw back lost revenue in future years.
Shares are up around 1.1 per cent this morning to 1,051p per share.
Pennon said it remains in a strong financial position with expected cash and committed facilities of more than £3bn at 30 September 2020.
Additionally, Pennon said its sale of Viridor completed in July and Pennon received £3.7bn in cash.
It will use some of this to pay down debt and contribute to the pension.
Pennon’s results for the half year to 30 September will be announced on 24 November.