Following the announcement of its acceptance of Ofwat's Final Determination in December 2024 for South West Water and Sutton and East Surrey Water, Pennon Group said it is “well placed for funding” its record AMP8 investment programme.
The confirmation comes in its trading update for the year ending 31 March 2025 ahead of announcing full year results on 3 June 2025. The Group raised c.£1.3 billion in 2024/25 via rights issue, public bonds, private placements and other opportunities.
Key highlights in the trading update include
- Financial performance for the full year 2024/25 remains in line with management expectations
- Earnings before interest, taxes, depreciation, and amortisation (EBITDA) broadly flat H1 to H2 2024/25, with lower customer demand and inflationary cost pressures, offset by the Group’s reshaping and restructuring programme.
- Non-underlying costs for reshaping and transformation programmes and the finalisation of costs relating to the Brixham water supply incident of around £36 million
- Capital expenditure during the period comparable with the H1 2024/25 run rate, reflecting transitional expenditure and the finalisation of K7.
Pennon said it is continuing to deliver against its four priorities:
- Over £1 billion of investment programmes for AMP8 (2025-2030) underway
- Strong water resources position at over 90% with industry leading water quality expected
- One of only five companies in the industry to reduce storm overflow releases year on year, with bathing beach releases during the bathing season down by 21% since 2020
- Targeted to retain EPA 2* status for 2024/25
- New package of c.£200 million customer affordability support unlocked from 2025/26.