Pennon Group PLC (PNN) - Half Year Results 2023/24.

[idpickering]

The proposed interim dividend (14.04p) has not been included as a liability in this condensed half year financial information. The proposed interim dividend for the year ending 31 March 2024 will be paid on 5 April 2024 to shareholders on the register on 26 January 2024.

https://www.investegate.co.uk/announcem ... 24/7908888

Also posted on Company News here; viewtopic.php?p=630515#p630515

I suspect some hereabouts hold these, so this may be of interest here.

Ian (No holding).

[daveh]

I used to but sold out. Worried about debt and politics (paying large amounts to shareholders when also delivering large amounts of untreated sewerage to our rivers and both the public and all political parties complaining).

But looking at the results they are paying out an increased dividend of 14.4p on adjusted eps of just 3.6p and statutory eps of 0.5p. The final dividend is likely to be 28.8p and I doubt the second half profit is going to be significantly greater than the first half so the dividend is going to be paid from debt again. How can this be sustainable even without political interference? My recollection is that PNN was one of the worst of the water companies on debt measures, and present interest rates won't be helping.

Glad I'm out even if the price is up since I sold.

[micrographia]

I originally bought Pennon because they were diversified into waste disposal as well as water, so wasn’t that impressed when they sold Viridor, slashed the divi and handed me a big chunk of cash instead. Was tempted to sell, but HYP inertia won out. Divi has bounced back even if the SP hasn’t. I’ll keep sitting on my hands for now.

EEM

[Arborbridge]

I originally bought Pennon because they were diversified into waste disposal as well as water, so wasn’t that impressed when they sold Viridor, slashed the divi and handed me a big chunk of cash instead. Was tempted to sell, but HYP inertia won out. Divi has bounced back even if the SP hasn’t. I’ll keep sitting on my hands for now.

EEM

You history about the same as mine. I did intend to sell, but then converted to wait and see. I don't feel like a committed holder as it isn't the company I thought I was investing in - like you, wanted them to keep Viridor which was a good reason for buying.

Maybe time to rethink.

[Arborbridge]

I set a stop loss which triggered today.

No more PNN for me.


Arb.

[kempiejon]

Pennon. Change of company focus, selling of Viridor, return of capital and rebased dividend was a bit of an annoyance but I'm a determined sloth so the balance in my HYP can stay there. 6% yield is good enough for me. I see the sp has been declining for a couple of years. I usually like a utility that has a commitment to my income and Pennon says

This represents an increase of 8.3% and maintains our sector-leading dividend policy confirming growth of CPIH +2%.

I like that.

https://www.pennon-group.co.uk/dividends

[Arborbridge]

Pennon. Change of company focus, selling of Viridor, return of capital and rebased dividend was a bit of an annoyance but I'm a determined sloth so the balance in my HYP can stay there. 6% yield is good enough for me. I see the sp has been declining for a couple of years. I usually like a utility that has a commitment to my income and Pennon says

This represents an increase of 8.3% and maintains our sector-leading dividend policy confirming growth of CPIH +2%.

I like that.

https://www.pennon-group.co.uk/dividends

Yes, my sale was uncharacteristic and I was a little surprised the stop loss triggered. However, having had a useful rise in SP, I wasn't willing to risk it evaporating.
I didn't like disposing of Viridor, profit was well down as was free cash flow. Loads of investment being made - which is a good thing - but as Warren Buffett said of large Cap EX "You'd better be darned sure of that investment making good returns".

Now, the capital released will probably go into a couple of ITs which fits my general move towards letting someone else do the worrying in preparation for my "retirement"

Arb.

PS AAMOI my HYP is still bigger than my IT basket.