Pennon asserts resilience in face of viral threat

Pennon Group has highlighted its liquidity position in asserting its resilience in the face of the Covid-19 pandemic.

The South West Water parent said it raised £840m in new and renewed finance in 2019-20 which included £245 million of funding through the South West Water’s Sustainable Financing Framework. The group said it had cash and committed facilities of about £1.6 billion along with Pennon’s £300 million perpetual capital security approaching the first call date in May 2020.

Revenue at the water company was, according to the group’s recent financial update was reduced, in 2019-20 by record levels of rainfall. But it had, according to the update, outperformed during 2015-20 on totes and financing and “will end the five year period to 2020 in a net reward position on Outcome Delivery Incentives.”

Pennon forecast it will complete the £4.2 billion sale of its waste management arm, Viridor, this summer.

It has flagged up a new dividend policy to be detailed at its Full Year Results on 4 June 2020.