Pennon ups dividend as profits rise

25th May 2010 07:05

Southwest England-focused water group Pennon hailed another successful year after lifting revenues and profits in the year to March 31 and raising the full year dividend by 7.4%.Pre-tax profits climbed to £183.8m from £159.4m on revenues that rose to £1.068bn from £958.2bn. The proposed full year dividend was upped to 22.55p from 21p.South West Water, which operates in Devon, Cornwall and parts of Dorset and Somerset, outperformed cost efficiency targets set by the water regulator Ofwat, according to chairman Ken Harvey. Pennon's waste management and renewable energy division Viridor 'delivered a very strong financial performance,' he said.'Notwithstanding the lower returns envisaged by Ofwat's Final Determination and the impact of current economic conditions, the group remains well positioned to continue to deliver shareholder value and meet future challenges,' said Harvey.In its final determination on how much water companies can charge customers over the next five years, Ofwat called on South West Water to implement a £1 cut in bills in real terms by 2015.