Pennon's full-year earnings rise; dividend up nearly 5%

20th May 2015 10:37

London-listed utility company Pennon reported a 0.9% rise in core full-year earnings to £411m, pointing to a strong focus on cost efficiency and higher profits at its Viridor recycling and waste unit.Pennon also said it is sticking to its target to pay shareholders annual dividend increases of 4% above retail price inflation to 2020."The group has delivered a resilient set of results for 2014/15. South West Water's earnings before interest, taxes, depreciation and amortisation (EBITDA) was higher than last year despite the tariff freeze, thanks to a strong focus on cost efficiency, and as expected Viridor's EBITDA exceeded last year," said chairman Ken Harvey."Viridor has made excellent progress in its Energy business bringing five new Energy Recovery Facilities on stream in the year. Pennon is well positioned to continue to deliver profitable growth and consistent, sustainable cash returns to shareholders," he added.The dividend was increased to 31.80p from 30.31p, while revenue for the year was up 2.7% at £1.36bn compared to £1.32bn last year, with South West Water revenue up 0.4% at £522.2m from £520.0m. Revenue at Viridor rose to £835.9m from £802m.