Bristol Water boosts Pennon Group's half-year revenue

Pennon Group reported a 21.8% hike in revenue for the six months to 30 September 2021 to £389.3m. The growth included a £41.6m contribution from recently acquired Bristol Water.

The South West Water owner recorded year-on-year organic revenue growth at 8.8% fuelled by recovery in non-household demand and £9m in contract wins from Pennon Water Services. Group. Operating profit was up 11% at £127.4m.

Underlying, group profit before tax was up 4.3% at £90.4m with growth in earnings before interest, tax, depreciation and amortisation (ebitda) offsetting increased interest charges on index-linked debt. Increased costs capped organic ebitda growth at 1.8% to while contributions from Bristol Water took the increase in ebitda to 14.3% to £199.4m.

The group reported financial performance at Bristol as “ahead of expectations”, contributing £7.2 million in operating profit.

Pennon reported that 85% of its outcome delivery incentives were “on track or ahead of target”.