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South West and Bristol Water owner Pennon ups investment plans by £100m
29 November 2023, 10:04
The business now expects capital expenditure to reach £850m over the next two years.
Water company Pennon plans to invest another £100 million more than previously thought over the next two years as it tries to get to grips with the sector’s pollution problem.
The business, which owns South West Water and Bristol Water, said it anticipates that capital expenditure will total more than £850 million in the financial years ending in 2024 and 2025.
That is up from its previous guidance of more than £750 million, the company said.
“The additional investment will ensure we are well positioned to deliver on our commitments outlined in our draft business plan for (2025-2030) and across our commitments across priority areas of water resources, water quality, pollution reductions and storm overflows,” Pennon said on Wednesday.
The business said pre-tax profit dipped by nearly 85% to £3.2 million in the first six months of the financial year.
Revenue rose 5.4% during the period to £448.6 million, Pennon told shareholders, saying that was due to increases in the tariffs it could charge customers.
Chief executive Susan Davy said: “I am very clear that if we serve our customers well, we serve our shareholders well, which is why we are focused on improving environmental performance, keeping bills as low as possible, developing new water resources, and investing in renewable energy generation.
“This has helped us deliver a 100% bathing water quality assessment for the third year running and reduce serious pollution incidents this year, but we know there is more to do.”
She added: “Everyone at Pennon and in our wider supply chain works relentlessly to make change happen and I want to thank all my colleagues for their contribution to these results.
“I also want to thank them in advance for what they are about to do, as we look ahead to 2030, creating 2,000 new jobs in the region and delivering a sustainable future for all.”
Shares in the company were trading down 2.6% on Wednesday morning.