Pennon Group announces
new dividend policy
Pennon Group dividend intentions going forward
In May, 2010, Pennon Group announced 4% per annum real dividend increases from 2010/11 at least until 2014/15.
RNS Number : 4650M
Pennon Group PLC
25 May 2010
PENNON GROUP PLC
25 may 2010
PRELIMINARY RESULTS FOR THE YEAR TO 31 MARCH 2010
. . . .
DRAFT FINANCIAL HIGHLIGHTS
- Underlying profit before tax (1) up 14.2% to £189.1m
- South West Water up 8.7% to £132.5m
- Viridor up 34.8% to £55.4m
- Underlying earnings per share (2) up 9.2% to 41.6p
- Dividend
- Recommended final dividend per share up 9.5% to 15.60p
- Full year dividend up 7.4% to 22.55p
- Board announces policy of 4% per annum real dividend increases from 2010/11 at least until 2014/15
- Strong liquidity and funding position
- Group businesses well positioned in current economic conditions
. . . .
OPERATIONAL HIGHLIGHTS
. . . .
"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. South West Water is well placed to achieve Ofwat's efficiency targets and outperform its financing cost assumptions for K5.
Viridor expects to continue to deliver strong long-term growth through successfully leading the way in exploiting opportunities arising from the Government's landfill diversion, recycling and renewable energy targets.
As a result the Board is pleased to announce its intention to increase the dividend by 4% per annum above inflation from 2010/11 at least until 2014/15."
. . . .
STRATEGY, PROSPECTS AND DIVIDEND POLICY
The Pennon Board's priority continues to be the creation of shareholder value through its strategic focus on water and sewerage services; waste management; recycling; and renewable energy.
The Board has considered South West Water's decision in January to accept the Final Determination from Ofwat and has also reviewed Viridor's prospects over the coming years. South West Water has successfully delivered the K4 regulatory contract and is well placed to achieve Ofwat's efficiency targets and outperform its financing cost assumptions for K5.
Viridor expects to continue to deliver strong long-term growth through successfully leading the way in exploiting opportunities arising from the Government's landfill diversion, recycling and renewable energy targets - 44% of its profits are already from recovering value in waste.
On this basis the Board is today announcing its intention to enhance its progressive dividend policy to grow the Group dividend at 4% above inflation from 2010/11 at least until 2014/15.
The Board is recommending a final dividend for 2009/10 of 15.60p, up 9.5%, subject to shareholder approval. Together with the interim dividend of 6.95p, this will result in a total dividend for the year of 22.55p, an increase of 7.4% on the total dividend for 2008/09. The Company is also offering a scrip dividend alternative. The final date for receipt of Forms of Election/Mandate in respect of the scrip dividend alternative for the final dividend will be 20 September 2010. Details are due to be posted out to shareholders on 27 August 2010.
.....
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WE WOULD LIKE TO POINT OUT, THAT:
1.√the above mentioned announcement is an abridged version of the full announcement which can be found HERE
2.√the above mentioned announcement is solely used as an example of a UK listed company's future dividend intentions and is not a share recommendation. Early Retirement Investor nor EMAR Publishing are registered as an investment advisor or an independent financial advisor and do not provide individualised advice
3.√the price of shares and investments and the income derived from them can go down as well as up, and investors may not get back the amount they invested
4.√where the information consists of pricing or performance data, the data contained therein has been obtained from company reports, financial reporting services, periodicals, and other sources believed reliable
5.√data computations are not guaranteed by Early Retirement Investor.com or any of the data providers and may not be complete.
6.√The editor or contributors may have an interest in the share mentioned.
7.√Dividend yields move up and down. As a company’s share price increases the dividend yield falls. And vice versa: if the share price falls the dividend yield increases.
Return to Rising Dividends for announcements from other companies with an amended dividend policy.
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