Pennon has delivered a strong earnings performance in the first half of 2015/16. All businesses across the Group are performing well. Results are likely to be weighted towards the first half of the year and are on track to meet management expectations for the full year 2015/16. This underpins our confidence in delivering a sector-leading dividend policy of +4% growth above RPI inflation."
H1 2015/16 vs H1 2014/15
Revenue broadly flat compared to H1 2014/15 at £689.1m
- Viridor (3.4%) to £410.1m as increased operating revenue from ERFs was offset by lower construction revenue from service concession arrangements as facilities come on-stream, and lower landfill tax receipts as volumes continue to decline
- Water business +4.1% to £279.3m as the expected reduction in allowed revenues at South West Water was mitigated by higher than expected customer demand and the contribution from Bournemouth Water
EBITDA(1) +15.9% to £231.7m
- Viridor +117.1% to £61.0m due to the increased contribution from operational ERFs
- Water business +0.8% to £173.6m
South West Water (4.2%) to £165.0m as expected, reflecting the revenue reset. Good progress being made on cost savings and efficiencies
Bournemouth Water contribution of £8.6m following acquisition, in-line with management expectations and Final Determination
Profit before tax +6.8% to £106.8m
- Viridor +174.5% to £12.9m
- Water business +0.9% to £87.0m
South West Water (3.1%) to £83.5m
Bournemouth Water contribution of £3.5m
Strong liquidity and financing position
- £320m of new and renewed facilities secured since 31 March 2015, including a new EIB loan facility of £130m
Earnings per share +5.0% to 23.2p
Interim dividend per share +4.8% to 10.46p
- Policy of +4% year-on-year dividend growth over RPI inflation through to 2020
