MP calls for water firm to give up shareholder dividends
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2024
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Source: Yahoo Finance
- MP Calls for Action: An MP urges the owners of a water company involved in a parasitic outbreak to halt dividend payments to shareholders due to ongoing issues.
- Outbreak Details: Pennon, owner of South West Water, is facing a cryptosporidium bug outbreak in Devon affecting 16,000 households and businesses since May 15.
- Response to Outbreak: UK Health Security Agency reports 57 confirmed cases with expectations of an increase; calls for suspension of dividends or CEO resignation.
- Company's Compensation: Pennon offers £3.5 million in compensation, increased customer payouts, and states that normal service has been restored for 85% of customers.
- Financial Performance: Despite increased profits, Pennon faced pre-tax losses, widened debt, and reduced total dividend payout while still showing a 3.8% increase from the previous year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
