Pennon H1 profits fall

28th Nov 2014 07:07

First-half revenue at utility infrastructure company Pennon rose, but profit was hit by increasing costs across the group's two divisions.In the six months ended 30 September, revenue rose 3.8% year-on-year to £692.3m, while operating profit fell 14.7% to £119.2m and profit before tax was down 9.8% to £100m.Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 7.1% to £200m, while net interest payable was reduced 27% to £21.6m.The group's South West Water division maintained stable operating profit despite a tariff freeze, while the Viridor arm's EBIDTA were lower than in 2013, but the company expected them to exceed full-year expectations."South West Water is continuing its strong performance against the 2010-2015 regulatory contract and is well placed to outperform its assumptions," said group chairman Ken Harvey."The company continues to deliver robust operational performance and efficiencies, and improving standards of customer service."Financial performance at Viridor has been in line with management expectations. "The company said adjusted earnings per share fell 7.1% to 22.1p, while the interim dividend of 9.98p per share represented a 6.3% increase and was, the firm said, in line with expectations.Outlook remained positive, the firm said, adding that both of its divisions were making good progress in their respective projects.