Business
Full Year 2019/20 Trading Statement
Full Year 2019/20 Trading Statement.
About this update from Pennon Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9582H\n Pennon Group PLC\n 30 March 2020\n \n \n \n \n 30 March 2020\n \n \n PENNON GROUP PLC\n \n \n \n Full Year 2019/20 Trading Statement\n \n \n \n \n Pennon, one of the UK's largest environmental infrastructure groups, is issuing the following update ahead of its results for the year ended 31 March 2020, which will be announced on 4 June 2020.\n \n \n \n \n Key highlights \n \n \n \n \n · \n \n \n Group performance for 2019/20 in-line with management expectations \n \n \n \n \n ·\n \n \n We are doing all we can to support our employees and customers through this unprecedented COVID-19 epidemic, with the Group being well positioned with strong funding and liquidity to weather current uncertainty \n \n \n \n \n · \n \n \n South West Water has outperformed in K6 (2015-20) on TOTEX and financing and will end the five year period to 2020 in a net reward position on Outcome Delivery Incentives (ODIs)\n \n \n \n o \n Revenue for 2019/20 has reduced, driven by prolonged wet weather with rainfall 50% more than the levels seen last year and higher than long-term averages. Year on year shortfalls in revenues (compared with the Final Determination) are subject to a revenue true-up mechanism in future years \n \n \n o \n Operationally the business has performed well, ensuring minimal impact to customers at times of extreme wet and stormy weather\n \n \n o \n Water resources now over 95%\n \n \n \n · \n \n \n Viridor continues to perform well - focused on operational excellence and driving ongoing efficiency\n \n \n \n \n o \n \n \n Growth in energy recovery with ramp-up of existing plants. Avonmouth Energy Recovery Facility (ERF) is now in commissioning and contributing to earnings, operational ramp-up expected during 2020/21\n \n \n \n \n ·\n \n \n Announced on 18 March 2020, the sale \n \n \n of Viridor to Planets UK Bidco Limited, a newly formed \n \n \n company established by funds advised by Kohlberg Kravis Roberts & Co. L.P. for an Enterprise Value of £4.2 billion. \n \n \n The transaction is expected to complete in Summer 2020\n \n \n \n \n ·\n \n \n Following the sale of Viridor, Pennon will focus on its sector-leading water and wastewater businesses and will continue to pursue growth within the UK water industry. \n \n \n \n \n COVID-19\n \n \n \n \n In these un...