RNS Number : 1616R
Pennon Group PLC
17 August 2010
17 August 2010
PENNON GROUP PLC
INTERIM MANAGEMENT STATEMENT
Financial performance at Pennon Group Plc since 31 March 2010 has been in line with management expectations.
Having successfully completed the K4 regulatory contract (2005 - 2010), South West Water has a solid platform in place for continued success during the next regulatory period (K5, 2010 - 2015). There have been no water restrictions in South West Water's area since 1996 and the company is pleased to confirm that, in spite of the dry summer, water restrictions in the region are highly unlikely this year.
Viridor continues to perform well in weak UK economic conditions and remains confident of delivering full year growth in profit before tax. As previously flagged, market prices for brown energy remain significantly lower than the very high prices achieved last year, which will materially affect this year's power generation results. Three Materials Reclamation Facilities in East Anglia and the South Midlands, were acquired in June 2010 from Reconomy (Acquisition) Limited for a cash consideration of £23.8m.
In July 2010 South West Water issued a £150m 30 year bond with a coupon of 5.875%. The proceeds of the bond have been used to refinance existing indebtedness and provide pre-funding of its capital expenditure.
In addition, since 1 April the Group has secured a further £175m of funding, including
re-financing £75m of existing funding.
Further information on Pennon, South West Water and Viridor can be found on the
Group's website, www.pennon-group.co.uk
For further information, please contact:
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. Further details of Pennon Group's principal risks and uncertainties are set out in Pennon Group's 2010 Annual Report which can be viewed online at pennon-group.co.uk/pennongroup/uploads/financialreports/Annual_Report_ 2010.pdf. 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.
17 August 2010
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