Business
Pennon Full Year Results 2019/20
Pennon Full Year Results 2019/20.
About this update from Pennon Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 9127O\n Pennon Group PLC\n 04 June 2020\n \n \n \n \n 4 June 2020 \n \n \n Full Year Results 2019/20\n \n \n \n \n \n \n \n \n Strategic value realised through sale of Viridor, \n \n \n \n \n well positioned for new regulatory delivery period\n \n \n \n \n \n \n Pennon, one of the UK's largest environmental infrastructure groups, is issuing its Full Year Results for the year ended 31 March 2020.\n \n \n Solid 2019/20 performance\n \n \n · \n We continue to do all we can to support our employees, customers and communities through this unprecedented COVID-19 pandemic, with the vast majority of operations continuing as usual\n \n \n · \n Pennon is well positioned with strong funding and liquidity of £1.6 billion, prior to receipt of net cash proceeds from Viridor sale, to weather ongoing uncertainty\n \n \n · \n Solid financial and operational performance across the Group, in line with management expectations, delivering for all our stakeholders, well positioned for K7 (2020-25)\n \n \n · \n South West Water finished K6 (2015-20) with sector leading cumulative RORE[1] of 11.8%\n \n \n · \n Viridor has performed well, successfully delivering key priorities and growth investment\n \n \n · \n Delivering on dividend commitment for 2019/20, announcing a sustainable 2020-25 dividend policy for the Continuing Group of CPIH[2] +2% per annum \n \n \n Financial impact of COVID-19\n \n \n · \n Financial impacts for 2019/20 focused on expected credit losses (ECL) - related to customer debt - provision of £9.0 million across the Pennon Group\n \n \n · \n Pennon Water Services not requiring deferral of wholesale payments at this stage - a number of other retailers taking advantage of wholesaler regulatory support\n \n \n · \n Impact for 2020/21 - assumes a three month lockdown with ramp-up over the remaining year\n \n \n o \n non-household revenue expected to reduce, offset by increased household demand\n \n \n o \n risk from ECL for businesses, retailers and households. Support schemes to mitigate impacts\n \n \n o \n Viridor resilient through ERF contracts\n \n \nSale of Viridor on track for early summer completion · Sale of Viridor to KKR[3] for an Enterprise Value of £4.2 billion representing an EV / EBITDA multiple of 18.5x[4]· Shareholder approval and European Commi...