Pennon Group PLC on Tuesday cut its annual dividend after posting a pretax loss despite a double-digit rise in revenue.
Pretax loss widened to £72.7 million in the year to March 31 from £9.1 million a year ago.
Profit was hit by a £21.0 million charge following the Brixham, Devon parasite outbreak and £16.6 million group restructuring charges.
On an underlying basis, Pennon reported a pretax loss of £35.1 million compared to a profit of £16.8 million a year ago.
Shares in the Exeter-based water utility fell 3.8% to 489.00 pence each in London on Tuesday morning.
The company said it expects to return to profitability in the current financial year through increased revenue and a reset of its cost base.
Pennon expects earnings before interest, tax, depreciation and amortisation to increase by two thirds in the current financial year.
In the financial year just ended, Pennon reported total Ebitda of £298.0 million down 4.6% from £312.4 million a year prior.
Underlying Ebitda fell to £335.6 million from £338.3 million.
Revenue rose 16% to £1.05 billion in the financial year from £907.8 million a year prior.
Capital expenditure edged up to £652.2 million from £649.5 million with finance costs jumping by 23% to £184.4 million from £150.2 million.
Pennon said operational efficiencies helped offset inflationary cost pressures, including investment in new technology.
The dividend was reduced by 14% to 31.57 pence from 36.67p.
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