South West ticks up pre tax earnings 3.6%

Pennon Group reported a 3.6% year-on-year increase in pre tax profit at its South West Water business to £184.6m for the year to 31 March 2019 on revenue up 1.7% to £581m.

Before exceptional (non-underlying) items the underlying profit before tax at South West Water was flat at £180.6m. Underlying operating profit was up 1.3% to £251.1m.

Pennon’s water retail operation, Pennon Water Services, reported a loss before tax of £1.6m, up from a loss of £1.1m in the previous year. Revenue was up 4.7% to £173.7m.

Pennon’s group’s statutory profit before tax for the year was down 1% at £260.3m on revenue up 6.1% at £1,478.2m. Non underlying items totalled a charge of £19.9m including £5.8m credit on fair value movement in derivatives from a £2.4m charge in the previous year. Group underlying profit before tax was up 8.3% at £280.2m.