Half year numbers are out from the UK water utility company Pennon this morning, with the new regulatory pricing framework helping return the business to profitability. Revenues added 25%, whilst the £39m pre tax loss posted a year ago has spun to a £66m profit. Underlying EBITDA is expected to rise 60% for the full year. The Pennon share price was trading 3% higher shortly after the open but had started to give back gains at the time of writing.
Financial advisers WH Ireland issued a note this morning announcing that ongoing bid talks with Channel Islands-based Team had progressed and the company’s management was now recommending the deal. This takes gains on the WH Ireland share price over the last month to more than 250%. This is an all share deal, with an implied value of 5.4p per WHI share – at the time of writing, the WH Ireland share price was up 33% on the day at 4p.
Big losses for the gambling group this morning, following an initially positive share price response yesterday to the budget. Whilst the abolition of taxes on bingo have given the company an estimated £6m boost, the changes to inline gambling duties will knock a big hole in profitability. In a note issued after last night’s close, the company highlighted that the new levies would increase tax liabilities by a further £46m, essentially wiping out profitability. The Rank share price was down more than 10% in early trade.
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