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Pennon Group PLC (PNN)

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Tuesday 09 February, 2010

Pennon Group PLC

Interim Management Statement

RNS Number : 8522G
Pennon Group PLC
09 February 2010

9 February 2010






Financial performance at Pennon Group Plc since 1 October 2009 has been in line with management expectations. 


South West Water remains on target to meet the K4 regulatory contract.  As announced on 18 January 2010, SWW has decided not to ask Ofwat to refer its Price Determination to the Competition Commission. 


Despite current economic conditions Viridor is performing well and remains confident of delivering continued full year growth in profits. 


The Group has now fixed or put in place swaps to cover £733m of South West Water debt to the end of K5.  In addition, a further £70m remains fixed from K4 up to March 2011.  In total this amounts to 50% of South West Water's net debt fixed for the first year of K5.  The average rate achieved on the £803m fixed rate debt is circa 3.75%.  In addition, £353m of South West Water's debt is index linked at an overall real rate of 1.66%.


Since 1 October the Group has secured £270m of funding, including re-financing £165m of existing funding.


The Board announced last month its intention to continue to pursue a progressive policy of growing the Group dividend in real terms, at least up to 2014/15 and expects to be able to provide further detail with its Preliminary Results on Tuesday 25 May 2010.


The interim dividend for the year ending 31 March 2010, announced with the Company's Half Year Report on 19 November 2009, of 6.95p per share will now be paid to shareholders on 1 April 2010 (6 days earlier than previously announced). The final date for receipt of Forms of Election/Mandate in respect of the scrip dividend alternative for the interim dividend (which will be sent to shareholders on 19 February 2010) will therefore now be 15 March instead of 22 March 2010 as previously announced.


Further information on Pennon, South West Water and Viridor can be found on the

Group's website,


For further information, please contact:



David Dupont - Group Director of Finance                01392 443998

Jo Finely - Investor Relations Manager                      01392 443401



Sally Hogan                                                                 0207 251 3801



Cautionary statement in respect of forward-looking statements


This document contains forward-looking statements relating to the Pennon Group's operations, performance and financial position based on current expectations of, and assumptions and forecasts made by, Pennon Group management.  Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as "anticipates", "aims", "due", "could", "may", "should", "expects", "believes", "intends", "plans", "targets", "goal" or "estimates".  By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will or will not occur in the future.  Various known and unknown risks, uncertainties and other factors could lead to substantial differences between the actual future results, financial situation, development or performance of the Group and those expressed or implied in this document.  These risks, uncertainties and factors include, but are not limited to, changes in the economies and markets in which Pennon Group operates; changes in the regulatory and competition frameworks in which Pennon Group operates; the impact of legal or other proceedings against or which affect Pennon Group; and changes in interest and exchange rates.  Undue reliance should not be placed on forward-looking statements which are made only as of the date of this document.  Nothing in this document should be construed as a profit forecast.  The Group accepts no obligation publicly to revise or update these forward-looking statements or adjust them as a

result of new information or for future events or developments, except to the extent legally required.



9 February 2010

End transmission


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