Pennon Group pre-tax loss ticks up to £9.1m

Pennon Group has posted a reported loss before tax for the year to 31 March 2024 of £9.1m, following a loss of £8.5m in the previous year. Group revenue for the year was up 10% to £907.8m.

Operating profit was up £13.2m to £166.3m. Increases in operating costs included £13.9m incurred in the setting up of a business transformation programme at its South West Water business following its merger with Bristol Water, and £9.6m in expenses connected with the group’s acquisition of SES Water and a related investigation by the Competition and Markets Authority (CMA). Net finance costs were up £32m to £150.2m.

Pennon Group’s water and sewerage arm, South West Water, reported a statutory pre-tax loss of £1m from a £29.6m loss the previous year. The result for the current period included exceptional costs totalling £15.6m. Statutory revenue was up 4.1% to £729.8m.

The recently acquired SES Water business contributed to Pennon’s group figures from 10 January 2024 with £35.7m in revenue and earnings before interest, tax, depreciation and amortisation of £3.6m. Pennon said it planned to address “high levels of financing costs” at SES Water “as and when CMA clearance is obtained.”

The group’s business water retail operation, Pennon Water Services, reported revenue up 7.2% to £233.8m with profit before tax, up £2.9m year-on-year to £4.7m.