Pennon Group Trading Statement posted on Company News Board.

[idpickering]

Here; viewtopic.php?p=342670#p342670

No mention of dividends that I can see.

Ian.

[Gerry557]

From the results :-

For 2019/20, the Board has recommended a final dividend of 30.11p, subject to shareholder approval at the Annual General Meeting on 31 July 2020. Together with the interim dividend of 13.66p, this will result in a total dividend of 43.77p, an increase of +6.6% from last year. This is in line with our dividend policy for 2010-2020 of Retail Price Index (RPI) +4% growth per annum, which has been achieved whilst investing more than £3.6 billion in our businesses over the past 10 years. Pennon offers shareholders the opportunity to invest their dividend in a Dividend Reinvestment Plan (DRIP).

The crystallisation of the Viridor sale is equivalent to 22.66p per share of the recommended 2019/20 dividend. This implies a Continuing Group dividend (after excluding Viridor) of 21.11p per share.

[daveh]

From the results :-

For 2019/20, the Board has recommended a final dividend of 30.11p, subject to shareholder approval at the Annual General Meeting on 31 July 2020. Together with the interim dividend of 13.66p, this will result in a total dividend of 43.77p, an increase of +6.6% from last year. This is in line with our dividend policy for 2010-2020 of Retail Price Index (RPI) +4% growth per annum, which has been achieved whilst investing more than £3.6 billion in our businesses over the past 10 years. Pennon offers shareholders the opportunity to invest their dividend in a Dividend Reinvestment Plan (DRIP).

The crystallisation of the Viridor sale is equivalent to 22.66p per share of the recommended 2019/20 dividend. This implies a Continuing Group dividend (after excluding Viridor) of 21.11p per share.

and this is what they say (in the trading statement) about the 3.7B cash received:

Following the completion of the sale of Viridor in July, Pennon's debt restructuring programme is progressing well, with around two thirds repaid to date of the up to £900 million the Group announced it would seek to retire. With shorter term deposit rates remaining low, the swift repayment of debt has significantly reduced the Group's cost of carry. Alongside this, a contribution of £36 million has also been made into the Group pension schemes.

We continue to review the most efficient and effective method of returning value to shareholders, alongside considering earnings accretive market opportunities. Any potential investment will be assessed in terms of value creation and the impact on shareholder returns, income and growth, as well as the impact on customers and other stakeholders. Any use of capital to pursue an investment opportunity will be compared with the alternative of returning that capital to shareholders, ensuring our strong focus on financial discipline is maintained.

An update for shareholders on this review will be provided at Pennon's half year results announcement in November 2020.

So about £1billion of it used to pay off debt and the pension. So that should reduce borrowing expenses (leaving more for dividends/new investment). We'll find out a bit more about what they plan to do with the remaining £2.7billion in November. Be that a purchase or a special/capital return or a mixture of things.

[Arborbridge]

For 2019/20, the Board has recommended a final dividend of 30.11p, subject to shareholder approval at the Annual General Meeting on 31 July 2020.

I read that three times. Is it me or it is strange wording, since 31th July 2020 is in the past?

Can we take it that either it was approved or that they mean it's subject to approval in 2021?

Arb.

[monabri]

Results of the Annual General Meeting held on 31 July 2020 at Peninsula House, Rydon Lane, Exeter EX2 7HR

Resolution 2 approved


"To declare a final dividend in respect of the year ended 31 March 2020 of 30.11p for each ordinary share for payment on 2 September 2020."

https://www.londonstockexchange.com/new ... m/14637489

[Gengulphus]

For 2019/20, the Board has recommended a final dividend of 30.11p, subject to shareholder approval at the Annual General Meeting on 31 July 2020.

I read that three times. Is it me or it is strange wording, since 31th July 2020 is in the past?

Can we take it that either it was approved or that they mean it's subject to approval in 2021?

It's just the result of failing to read a non-link quote attribution carefully enough - with my bold:

From the results :-

For 2019/20, the Board has recommended a final dividend of 30.11p, subject to shareholder approval at the Annual General Meeting on 31 July 2020.

I.e. it's a quote from Pennon's final results, announced on June 4th, not from the trading statement referred to in this thread's title, announced yesterday.

Edit: I can add that the dividend concerned hasn't only been approved by the AGM - a look at my bank statement confirms that it's also been paid on September 2nd, as expected.

Gengulphus

[Gerry557]

Yes I was replying to Ian's comment on the lack of comment on the dividend.

Most companies have a dividend policy, PNN does multi year ie 2020 - 2025 and sets the level of dividend in the final results announcement, Trading updates are just that. More of a we are or are not on track with the plan listed previously or to mention any urgent or big deviations (Covid etc) that was unforeseen. Most don't even include any finance apart from an overview.

From the results going forward there has been a cut in the growth level and this is also on a rebased dividend level as the company is now smaller. Asked elsewhere, its what they do with the rest of "our" cash? Buybacks, special, share consolidation?

__________________________________________________________________________________________________________________

"For 2019/20, the Board has recommended a final dividend of 30.11p, subject to shareholder approval at the Annual General Meeting on 31 July 2020. Together with the interim dividend of 13.66p, this will result in a total dividend of 43.77p, an increase of +6.6% from last year. This is in line with our dividend policy for 2010-2020 of Retail Price Index (RPI) +4% growth per annum, which has been achieved whilst investing more than £3.6 billion in our businesses over the past 10 years. Pennon offers shareholders the opportunity to invest their dividend in a Dividend Reinvestment Plan (DRIP).

The crystallisation of the Viridor sale is equivalent to 22.66p per share of the recommended 2019/20 dividend. This implies a Continuing Group dividend (after excluding Viridor) of 21.11p per share.

The Board intends to use the c.£3.7 billion of net cash proceeds to reduce Pennon's company borrowings and pension deficit, retain some funds for future opportunities, and make a return to shareholders. Details of additional returns to shareholders from the sale of the Viridor business will be announced in due course.

Pennon's dividend policy for 2020-25 for the re-based Continuing Group will be growth of CPIH + 2% per annum, from an implied Continuing Group dividend for 2019/20 of 21.11p per share. The shift from the existing policy of linking the growth in dividend from RPI to CPIH reflects the change in the regulatory model for South West Water, matching allowed revenues.

The re-based dividend reflects the sector leading position of the Continuing Group, with expectations for outperformance on financing and Totex supporting the sustainable dividend growth policy and dividend cover."