UK's Pennon to pay 3.5 million pounds compensation for Brixham water contamination
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 21 2024
0mins
Source: reuters
- Pennon's Financial Performance: Pennon, a British water firm, saw its shares drop by 6% after missing annual operating profit forecasts and announcing compensation for households affected by a parasite outbreak in southern England.
- Compensation for Contamination: The company will pay £3.5 million in compensation to households in Brixham, Devon, due to parasite contamination, amounting to about £215 per household.
- Operational Updates: CEO Susan Davy stated that efforts are focused on restoring a safe water supply to the affected area, with normal service already returned to 85% of customers in Brixham.
- Financial Figures: Despite reporting a 9% rise in underlying operating profit to £166.3 million, Pennon's figures fell 5% below analysts' consensus estimates, leading to a dividend cut by £2.4 million.
- Industry Criticism and Future Outlook: The UK's water industry has faced criticism for environmental issues and high bills. Pennon aims for revenue growth in the current fiscal year through tariff increases and non-household retail business expansion.
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.
